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Why doesn't everyone just buy Vanguard LifeStrategy?
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bostonerimus wrote: »IT's are investment companies and employ a variety of financial techniques such as borrowing (gearing) and derivatives. This can lead to both big gains and big losses.bostonerimus wrote: »As a passive investor I avoid ITs as I don't believe the ideas of a board of directors or a manager provide added value...bostonerimus wrote: »...and I think they are more prone to failure and fraud than open ended funds.
In Audaxer's post...Audaxer wrote:I've initially put most of my income portfolio in funds. I'm just a bit wary of investing too much in ITs as they are shares, and there is risk, albeit slight, that an IT could go bust and you could lose your whole investment in it. I think good income funds will produce the same level of income similar ITs over time.
I am under no illusions over the heightened risk for an investor in ITs as opposed to OIECs for example but, at their simplest level they are both collective investment vehicles at different levels in the risk scale (and some ITs can be extremely risky, i.e. VCTs/EIS ITs) and it is highly unlikely that a general or income trust/fund would fail due to a comprehensive failure in 100% of their underlying assets, which was the implication of the post.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Thanks, to give you a SWR of 3% I would have thought you would need maybe a medium risk portfolio for the pot to grow by roughly inflation plus 3% in retirement, so that you don't run out of money?
When I made the decision to retire I calculated that simply drawing capital would last me to 100+ provided the capital kept pace with inflation, no additional growth. That's ignoring the pensions I could start drawing at 65, which themselves will pay all my bills and basic spending. The actual growth over inflation is just a nice bonus.Eco Miser
Saving money for well over half a century0 -
Because I believe my portfolio is better.
A - My Strategy 90% Equity
B - Life Strategy 100% Equity
C - Life Strategy 80% Equity0 -
It was designed to outperform LifeStrategy 100 in a bear market and match it in a bull market, so it will certainly be interesting to see how it does.0
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aroominyork wrote: »Without asking you to list your holdings now and in the past, it would be interesting to know your key strategies/tactics in constructing a portfolio to achieve that aim.
Here are my holdings, you can probably guess the rationale
Legal & General International Index
Legal & General European Index
Legal & General Pacific Index
Fundsmith Equity
First State Global Listed Infrastructre
Worldwide Healthcare Trust
M&G Strategic Corporate Bond
Baille Gifford Japanese Smaller Companies
I recognise it may well underperform LifeStrategy in some circumstances, but I doubt it will persistently do so to such a significant degree that I lose sleep over it, and it is a whole lot more interesting managing it.0 -
Here are my holdings, you can probably guess the rationale
Legal & General International Index
Legal & General European Index
Legal & General Pacific Index
Fundsmith Equity
First State Global Listed Infrastructre
Worldwide Healthcare Trust
M&G Strategic Corporate Bond
Baille Gifford Japanese Smaller Companies
I recognise it may well underperform LifeStrategy in some circumstances, but I doubt it will persistently do so to such a significant degree that I lose sleep over it, and it is a whole lot more interesting managing it.0 -
Here are my holdings, you can probably guess the rationale
Legal & General International Index
Legal & General European Index
Legal & General Pacific Index
Fundsmith Equity
First State Global Listed Infrastructre
Worldwide Healthcare Trust
M&G Strategic Corporate Bond
Baille Gifford Japanese Smaller Companies
I recognise it may well underperform LifeStrategy in some circumstances, but I doubt it will persistently do so to such a significant degree that I lose sleep over it, and it is a whole lot more interesting managing it.
Do you fancy taking part in the Great British Invest off?
https://forums.moneysavingexpert.com/discussion/57195170 -
If you don't mind me asking, it would also be interesting to know what percentages you have in each and whether over the past 5 years you have regularly rebalanced back to these percentages.
I don't see the point of annual rebalancing because the original percentages were not carefully calculated. I didn't think "Oh I must definitely have 7% WWH because 8% would be totally inappropriate". So if WWH reaches 8% I don't have any pressing need to reduce it back to 7% before another 12 months passes. Neither is there any reason to think that just because it has grown more than the average of the rest of my portfolio, it will be more likely than the rest to drop back again.
I do rebalance to some degree when I add a new lump sum and have to decide how it is allocated. I do this to maintain my overall strategy rather than chase specific percentages.
Currently I have this:
Legal & General International Index 22%
Legal & General European Index 15%
Legal & General Pacific Index 10%
Fundsmith Equity 11%
First State Global Listed Infrastructure 11%
Worldwide Healthcare Trust 7%
M&G Strategic Corporate Bond 10%
Baille Gifford Japanese Smaller Companies 12%0
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