Vanguard Target vs LifeStrategy

webnibbler

dunstonh wrote: »

Compliance firms have been warning advisers for a while not to use them and many providers have pulled their lifestyling funds. It is somewhat ironic that Vanguard launch theirs as the rest of the market is pulling out.

I understood the warnings were around the risk posed by a potential bubble in bonds. Not sure this is correct?

Is lifestyling now redundant in the new pensions freedom world? It still seems like a good idea to be reducing one's exposure to more volatile assets in the run up to drawing an income, even if the intention is not to annuitise. As you mentioned unlike other providers Vanguard don't reduce the riskier allocations fully. Presumably this is preparation for potential drawdown.

dunstonh

I understood the warnings were around the risk posed by a potential bubble in bonds. Not sure this is correct?

No. It was about automatic risk reduction not being suitable following the pension freedoms.