Should I consolodate everything into Vanguard?

Gaaraz

Hi,

Looking at my Portfolio right now, I have small amounts in the following:

Aberdeen Asian Smaller Companies Investment Trust 8%
Aberdeen Global Asian Smaller Companies 5%
Cazenove UK Smaller Companies 10%
Clean Air Power Ltd 3%
First State Global Emerging Mkt Leaders 5%
Invesco Perpetual High Income 7%
Legg Mason Japan Equity Fund 9%
Liontrust Special Situations 5%
Lloyds Banking Group plc 4%
Paddy Power plc 6%
Severn Trent Plc 4%
Standard Life UK Equity Unconstrained 5%
Tesco plc 7%
United Utilities Group Plc 4%
Vanguard LifeStrategy 100% Equity 18%

I'm thinking of ditching everything (or at least some of the funds/shares) and putting everything into the Vanguard Lifestrategy (I have an S&S ISA too which I exclusively use Vanguard Life Strategy with)

Any thoughts please? Are there any I should hold onto?

Thanks!

Momomo_2

Hi there,

If this fund had been available back in November 2010 I would definitely have signed up. The Vanguard Lifestyle fund is great as it does the balancing for you over time. What was already passive investment has become even more passive!!

I didn't quite understand your reference to a stocks and shares ISA. Where is the following sitting? In a SIPP? What are your timelines?

Aberdeen Asian Smaller Companies Investment Trust 8%
Aberdeen Global Asian Smaller Companies 5%
Cazenove UK Smaller Companies 10%
Clean Air Power Ltd 3%
First State Global Emerging Mkt Leaders 5%
Invesco Perpetual High Income 7%
Legg Mason Japan Equity Fund 9%
Liontrust Special Situations 5%
Lloyds Banking Group plc 4%
Paddy Power plc 6%
Severn Trent Plc 4%
Standard Life UK Equity Unconstrained 5%
Tesco plc 7%
United Utilities Group Plc 4%
Vanguard LifeStrategy 100% Equity 18%

Also - all of these carry heavier fees than Vanguard which I'm sure you're aware of. Can you share the TER of the funds that you currently hold? Who is your broker? My aim recently has been to cut all of these transaction and maintenance fees right back.

Gaaraz

Many thanks, I have an ISA exclusively for Vanguard LifeStrategy and can't have a SIPP due to employer pension, so this is just a fund account on the side. I'm thinking of the (very) long term, I'm in my late twenties so probably 30+ years before I hopefully need to touch any of the cash.

I think I should definitely follow your lead and prune back and try to cut down on fees in particular! I'm with Hargreaves Lansdown at the moment. Thanks again

Momomo_2

Sounds like you're in good shape!

Do you know which LifeStrategy you are going to get? If I were to do it now on the side and not touch it for 30+ years, I'd be very aggressive. I would be tempted to do a 70 equity, 30 bond split if that's available. Last I looked through my platform there was only a 60/40 split available.

Don't forget to check the fee for this fund either as although Vanguard do have rock-bottom fees compared to any other index fund provider there are some that have a TER of 0.5%. I try and not go above this as a rule of thumb.

Hope this helps.

How did you get into Vanguard? I only learnt about it through following personal finance blogs based in the US for many years until finally my platform introduced it a few years ago.

planteria

Gaaraz wrote: »

..can't have a SIPP due to employer pension..

why can't you have your own pension arrangements alongside those provided by your employer?

Gaaraz

Thanks, hopefully! I’ve got 80% in my ISA, and 100% in my regular fund account... so pretty aggressive! Allowances permitting, I’m hoping eventually to move everything across into the ISA though at 80%.

There is a £2p/m fee which is pretty ridiculous considering how much I have in it, which is another reason why I’m considering moving everything into the LifeStrategy to make it more worthwhile!

I got into Vanguard mostly via reading about it here, but also on the Bogleheads forum and site too

Gaaraz

planteria wrote: »

why can't you have your own pension arrangements alongside those provided by your employer?

Interesting.... so I could have a police staff pension, and a SIPP? I never knew that!

I'm hoping to retire early if possible though, is that also possible on a SIPP? If so, I feel like I've made a huge mistake in not getting one!

planteria

as far as i am aware you can whatever investments you like alongside a police pension.

whether a SIPP is right for you is another matter of course. SIPP investors will be able to access their pensions in accordance with the regulations at the time..

planteria

i should add.....legal investments;)
we can't have corrupt coppers, heaven forbid:A

Linton

Gaaraz wrote: »

Hi,

Looking at my Portfolio right now, I have small amounts in the following:

I'm thinking of ditching everything (or at least some of the funds/shares) and putting everything into the Vanguard Lifestrategy (I have an S&S ISA too which I exclusively use Vanguard Life Strategy with)

Any thoughts please? Are there any I should hold onto?

Thanks!

In my view you should only put all your investments into the Vanguard fund if it invests in those things you want to invest in. In particular something like 23% of your portfolio is currently invested in higher risk/higher return small company funds. Vanguards % in small companies will be very much smaller. What do you want?

The Vanguard 100% fund is 35% invested in the UK and 34% in the US. You currently have no US investments beyond that in the Vanguard fund. Do you want 35% invested in the US or not?

Rule of fund investing: Choose what you want to invest in, and in what proportions first, then choose the most appropriate funds to meet that specification.

In my view you could usefully get rid of your what looks at first sight to be an arbitrary collection of individual shares. You seem to be trusting the find managers to choose shares for you (or relying on an index). Do you have any reason for thinking that you can choose better? If so dont invest in the funds.

Momomo_2

£2 a month? What does that cover? Have you looked into Alliance Trust? They've won awards for their S&S ISA.