Investing generally and Vangaurd LifeStrategy

pauljoecoe

Nearly a year ago, struggling to find places to put my savings I thought that I'd chuck a few quid in a LifeStrategy 60. It was my first foray into stocks and shares/investing etc. Always been a cautious saver seeking out the best current and savings account deals

So one year on and my £3000 I invested (actually a little bit more to cover charges) is back at £3000. Should have stuck with my Santanader 123 current account! I was impressed by the gains initially in the first few months but the last 6 have been hopeless.

Should I just keep it there for a few years or cut my losses? Certainly doesn't make me want to try anymore investing.

george4064

One year is not long enough to reconsider, typically you should buy investments with a minimum 5 year holding period.

Just remember, that a 123 account will earn you £90 per annum. The Vanguard LS 60 fund, will have some good years and some bad years, but over the long run (5 years +), on average it will beat £90 per annum.

masonic

If your investment horizon is one year and you have an expectation of positive returns over such a timeframe, then I agree with you, you should have stuck with your Santander 123 account.

BLB53

Should I just keep it there for a few years or cut my losses? Certainly doesn't make me want to try anymore investing.

Vanguard LS is an excellent choice however, when you were thinking about the possibility of investing, surely you must have thought about the timeframe - at least 5 yrs and preferably 10+ yrs. Investing for 1, 2 or 3 yrs is not much more than a coin toss whether you show a positive or negative return.

I would suggest you hang on for the longer period and in the meantime read up a little more about the basics - some really good articles on the likes of https://www.monevator.com (incl recent article on book relating to Vanguard LS) also https://www.diyinvestoruk.blogspot.co.uk (basics tab).

Good luck!

dunstonh

Always been a cautious saver seeking out the best current and savings account deals

So, why did you pick an above average risk fund?

So one year on and my £3000 I invested (actually a little bit more to cover charges) is back at £3000. Should have stuck with my Santanader 123 current account! I was impressed by the gains initially in the first few months but the last 6 have been hopeless.

Investments have good periods, bad periods and periods where they do nothing. You average out those periods to give you the long term return. You do not look at these things in short term periods.

An economic cycle is closer to 10 years nowadays. Yet you are fretting over 6 months.

Should I just keep it there for a few years or cut my losses? Certainly doesn't make me want to try anymore investing.

Your problem is a lack of knowledge and possibly investing above your risk profile.

Why did you invest in a moderately adventurous fund given your lack of experience and knowledge?
The current decline is not a crash. it is a minor correction. Yet you are worrying about it. A crash would see losses double what you have seen. How would you feel about that?
You know that investments are long term (5-10 years+). So, why are you worrying about a minor blip covering a few months?

Do you have an adviser? If so, give them a call to discuss this. I think you could do with it

pauljoecoe

dunstonh wrote: »

So, why did you pick an above average risk fund?



Investments have good periods, bad periods and periods where they do nothing. You average out those periods to give you the long term return. You do not look at these things in short term periods.

An economic cycle is closer to 10 years nowadays. Yet you are fretting over 6 months.



Your problem is a lack of knowledge and possibly investing above your risk profile.

Why did you invest in a moderately adventurous fund given your lack of experience and knowledge?
The current decline is not a crash. it is a minor correction. Yet you are worrying about it. A crash would see losses double what you have seen. How would you feel about that?
You know that investments are long term (5-10 years+). So, why are you worrying about a minor blip covering a few months?

Do you have an adviser? If so, give them a call to discuss this. I think you could do with it

I think you have taken my post a little too seriously.

I'm not fretting. I am aware 5-10 years would be a better period of time. You are right probably don't have enough knowledge but on the other hand I went in with my eyes open. It's only 3K. I could have put in 30K, I didn't because I was just experimenting. TBA I could afford to lose the whole £3K if I wanted but I'd rather not. I don't have an advisor - not sure the cost if worth it for £3K!

The reason I chose this product was the simplicity of dump it and leave it. In the scheme of things it's not that a brave choice or risk. I was probably thinking maybe it wouldn't beat a 5% current account but on the other hand I didn't particular expect it to dip below the original investment.

This post was really just to get folks opinions on the current climate not to give an opportunity for finger wagging!

skitskut

pauljoecoe wrote: »

Nearly a year ago, struggling to find places to put my savings I thought that I'd chuck a few quid in a LifeStrategy 60. It was my first foray into stocks and shares/investing etc. Always been a cautious saver seeking out the best current and savings account deals

So one year on and my £3000 I invested (actually a little bit more to cover charges) is back at £3000. Should have stuck with my Santanader 123 current account! I was impressed by the gains initially in the first few months but the last 6 have been hopeless.

Should I just keep it there for a few years or cut my losses? Certainly doesn't make me want to try anymore investing.

You should stick with it - as the previous posters have said, one year is too short a timeframe. If it makes you feel any better the £15K I invested in VLS80 in April is now down 10%. You can't time the markets but you could perhaps look at now being a buying opportunity.

dunstonh

This post was really just to get folks opinions on the current climate not to give an opportunity for finger wagging!

We don't know you from Adam. We only have what you have typed in the post. So, to find out more we ask questions.

I didn't particular expect it to dip below the original investment.

Most people know the main risk warning on investments if you asked them to name one. The value of your investments will go down as well as up. So, why did you think that a 60% stockmarket based investment couldnt go down?

You say you were not fretting but in #1 you said "Should I just keep it there for a few years or cut my losses? Certainly doesn't make me want to try anymore investing.". That to me sounds like someone fretting.

You need to decide what you are doing as you appear all over the place at the moment.

jimjames

pauljoecoe wrote: »

This post was really just to get folks opinions on the current climate not to give an opportunity for finger wagging!

I don't see it as finger wagging.

In any other scenario when something has dropped in price people would be looking to buy more not sell out. I wonder why investments are different.