How good are vanguard

penpon

Hi I'm interested to know from people how good or bad the life strategy plans with vanguard are ?.
I see a lot people referring to the vanguard plans, and would like to know more about them.
I'm 57 yrs old trying to decide where to invest say around 50k maybe a bit more.
Then will decide which one to go 80/20, 60/40. Not sure yet,as im looking to finish work a little earlier than normal retirement age (12 HR shift worker factory).
Any help info much appreciated.
Cheers.

xylophone

Have you checked out your state pension situation to help with planning?

When do you plan to cease employment?

Do you plan to use the SIPP/other personal pension to "bridge the gap" to state pension/occupational pension age?

AnotherJoe

How long are you investing it for?

Vanguard funds are reasonably low cost and the ones you refer to, cover the global markets with a bias towards the UK (eg more UK than if you just took a representative sample of global companies)

So to answer your question "how good are they" they are good on a charge basis (though you can get better) and how their performance is (another measure of good?) depends upon how the global and the UK economy do and is nothing to do with Vanguard.

penpon

xylophone wrote: »

Have you checked out your state pension situation to help with planning?

When do you plan to cease employment?

Do you plan to use the SIPP/other personal pension to "bridge the gap" to state pension/occupational pension age?

Yes I my state pension kicks in 2026 full quota if I work another 3 yrs from now.
I would like to go at 60 but might consider part time.
Yes I have 25 yrs in a final salary pension , and currently in my company money purchase scheme 7 yes, standard life.
Just looking for somewhere to make the most of my savings , did consider property but not knowing anything about rentals, thought best to keep away.

penpon

AnotherJoe wrote: »

How long are you investing it for?

Vanguard funds are reasonably low cost and the ones you refer to, cover the global markets with a bias towards the UK (eg more UK than if you just took a representative sample of global companies)

So to answer your question "how good are they" they are good on a charge basis (though you can get better) and how their performance is (another measure of good?) depends upon how the global and the UK economy do and is nothing to do with Vanguard.

Hi I was thinking the 5 year mark.
I don't know anything about investing that's why I thought of putting it in managed fund would be better.
Forgive me for my naivety but just looking for a place I can grow my savings for my retirement.
Cheers.

dunstonh

Hi I'm interested to know from people how good or bad the life strategy plans with vanguard are ?.

Vanguard currently offer no plans in the UK. Although if you have more than £100,000 to invest in a single fund, this can be done with them.

The LS funds are not plans. They are investment funds.

They are a multi-asset fund which is cheap. it is not only option that does this. Like any solution, it has pros and cons. it is missing a few sectors that some may consider important. The allocations are relatively rigid and do not get frequent updates. The underlying assets are 100% passive. The weightings to some sectors may not considered appropriate by some.

There are other multi-asset solutions available. Opinions will vary on what people decide they feel is best as investing is largely about opinion.

Hi I was thinking the 5 year mark.

What is happening in five years that you will no longer require this investment? Do you plan to spend it?

An economic cycle is around 10 years in length. So, you would be investing for only half of it. Are you going to get the better half or the not so good half?

AnotherJoe

penpon wrote: »

Hi I was thinking the 5 year mark.
I don't know anything about investing that's why I thought of putting it in managed fund would be better.
Forgive me for my naivety but just looking for a place I can grow my savings for my retirement.
Cheers.

5 years is too short for an investment unless if it hasn't paid off in that time you can leave in another 5 or so ?

le_loup

This "five year too short, ten year OK" mind-set is really strange when used for all situations.

If the guy is soon to retire and wants a growing income, I can see nothing more sensible than a stock market investment.

Getting older? Reduce the risk, put it in the building society. What? Nonsense.

If you want no hassle, inflation proof income plus, there is no alternative to the stock market.

Rant over.

Plus

le_loup wrote: »

This "five year too short, ten year OK" mind-set is really strange when used for all situations.

I find it unhelpful because it's shorthand for 'the shorter the time in the market. the riskier it is'. It's not a brick wall it just means that, if you happened to invest at the worst time in the economic cycle, it might take a few years longer to get your money back with a sensible return. How that affects you depends on your personal circumstances. If you're thinking about retiring but could easily put it off for a bit, maybe you could live with that. If you're 95 then waiting longer is probably not something you want.

It's another risk to throw into the pot - but maybe the risk is lower than staying in cash until 'this year, next year, sometime, never'.

dunstonh

This "five year too short, ten year OK" mind-set is really strange when used for all situations.

Its not strange. It just means that the risk is increased by the shorter the term. Risk is diluted over time. The longer you invest, the closer you will move to the long term average. The shorter term you invest, the further away you could be and that could be higher or lower depending on those particular years.

I am more focused on why there is this fixed 5 year period and not open ended until death or something similar.

If the guy is soon to retire and wants a growing income, I can see nothing more sensible than a stock market investment.

But he is only investing for 5 years. So, what is going to happen in 5 years time that requires all that money? He is going to have to risk reduce almost as soon as he starts investing.

Getting older? Reduce the risk, put it in the building society. What? Nonsense.

Absolutely right.

If you want no hassle, inflation proof income plus, there is no alternative to the stock market.

Or other asset classes used in conjunction with the stockmarket. Such as those used in multi-asset funds.

manninman

I am more focused on why there is this fixed 5 year period and not open ended until death or something similar.


I understand the 'death' bit: bit uncertain about the 'something similar'!


Regards all round ...