24Y - Passive Investment Plan - Comments/Advice

bigadaj

In_For_A_Penny wrote: »

As a dentist in the UK do you not pay into the NHS pension?

Not what it was but still generous.

Yes but that isn't necessarily tax efficient, which additional payments into a sipp or similar are likely to be.

sadhu99

I'm not sure I understand why you would hold both VLS and the overlapping trackers below it. If you are trying to adjust your asset allocation vs. VLS, then wouldn't it be simpler to do so just through the other trackers? The only significant component you don't already have an overlapping fund is the global bond index and arguably that could be left out.

To be honest, if you are going to hold single sector funds that need rebalancing then you may as well go the whole hog and save yourself another 0.1% p.a. Mixing single sector and multi-asset with no rationale doesnt make a lot of sense, as you say.

You both make a lot of sense, it looks like I'm not really making any difference by having VLS in there, it's not having a significant positive effect (slight diversification) or a significant negative effect (except for the 0.1% OCF, which I can see is the more significant).

As a dentist in the UK do you not pay into the NHS pension?

Not what it was but still generous.

Yes, I will be, at least in the short-term, but it's unlikely I'll be working in the NHS for a significant period of my career.

bigfreddiel

Seems overly complex to me, this gives the illusion that a lot of thought and planning has gone into your plan, therefore it will succeed!

Not true.

Warren Buffet was asked how his wife should set her portfolio and the answer 10% bonds, 90% S&P 500

If it's good enough for him it's good enough for me, but replace S&P 500 with global equity fund.

Simple but effective.

People like complicated but in this instance it makes no difference, just ratchets up the costs for no good reason.

Cheers fj

dunstonh

Warren Buffet was asked how his wife should set her portfolio and the answer 10% bonds, 90% S&P 500

If it's good enough for him it's good enough for me, but replace S&P 500 with global equity fund.

Except its not good enough for him. He does not invest how he tells others to. Also, remember he is singing to the US market which is different to European.

Radiantsoul

dunstonh wrote: »

Except its not good enough for him. He does not invest how he tells others to. Also, remember he is singing to the US market which is different to European.

It is a bit like asking Usain Bolt how to run to catch a bus though. The average person(or his wife) starts from a somewhat handicapped position.

bigfreddiel

dunstonh wrote: »

Except its not good enough for him. He does not invest how he tells others to. Also, remember he is singing to the US market which is different to European.

The point is this what Warren says his wife should do not himself. Of course Warren invests somewhat differently.

Now I invest based on his principle. And it's working very nicely for me.

It's low cost, diverse, and very easy to build and rebalance

Cheers fj

dunstonh

The point is this what Warren says his wife should do not himself. Of course Warren invests somewhat differently.

And she is based in the US. So, the advice there is different to the UK as there is different taxation.

bigfreddiel

dunstonh wrote: »

And she is based in the US. So, the advice there is different to the UK as there is different taxation.

Isa - no tax!

dunstonh

bigfreddiel wrote: »

Isa - no tax!

The ISA tax wrapper is not recognised in the USA. The US taxation on funds makes it harder for managed funds to beat passive. Pre-tax managed funds do very well against passives. Post tax, most of them cant beat passives. The UK does not have that tax.

TheTracker

Most passive investing guides nominate the same property tracker as you have here as part of a balanced portfolio. It remains the only real option if you wish to hold a purely passive portfolio of index trackers. I hold the fund myself. By all means you need to understand what it is and the risks it holds, but I'd keep it in there.
The portfolio looks complicated for a low total value.