Vanguard life strategy - return

bostonerimus

Without knowing your goals and current asset allocation no one will be able to advise you between VLS20 or VLS40. Your desire to augment and buy "stuff" strikes me as a bit of a shotgun approach without much attention to an overall asset allocation. I would advise simplicity rather than complexity in your portfolio.....you don't need to own lots of different funds or stocks to be well diversified

sixpence.

I basically want to partly self-manage my stocks and shares ISA but also ensure some safety through manged funds. I find the stock market kind of exciting but I don't want to be silly about it. Things feel a little bit shotgun right now, but I'm trying to reduce that by learning and hopefully diversifying. This what I'm currently thinking:

Rising Asian market growth fund: 8.6%
U.K growth fund: 8.6%
Global tracker fund: 10.4%
FTSE 250 tracker: 10.4%
VL 20/80: 8.6%
Single UK shares (I own these already and they are high div so can pay for more shares in the future): 45%
High yield bonds (also own these already): 8.4%

This would fully add up to between 26-28k and I am hoping to make all of these investments by September 2018.

Would really appreciate any thoughts. Maybe I should chuck the trackers and just put all of that in a 60/40 VL fund?

I can imagine that it's a bit annoying that I am asking questions/don't know what I am doing, but I am doing tons of research and trying to learn as much as I can on my own.
I really appreciate you passing on the knowledge/experience. Hopefully I will do the same some day :beer:

bostonerimus

sixpence. wrote: »

I basically want to partly self-manage my stocks and shares ISA but also ensure some safety through manged funds. I find the stock market kind of exciting but I don't want to be silly about it. Things feel a little bit shotgun right now, but I'm trying to reduce that by learning and hopefully diversifying. This what I'm currently thinking:

Rising Asian market growth fund: 8.6%
U.K growth fund: 8.6%
Global tracker fund: 10.4%
FTSE 250 tracker: 10.4%
VL 20/80: 8.6%
Single UK shares (I own these already and they are high div so can pay for more shares in the future): 45%
High yield bonds (also own these already): 8.4%

This would fully add up to between 26-28k and I am hoping to make all of these investments by September 2018.

Would really appreciate any thoughts. Maybe I should chuck the trackers and just put all of that in a 60/40 VL fund?

I can imagine that it's a bit annoying that I am asking questions/don't know what I am doing, but I am doing tons of research and trying to learn as much as I can on my own.
I really appreciate you passing on the knowledge/experience. Hopefully I will do the same some day :beer:

I would take a step back and take some time to understand the basic principles of investing and asset allocation. Don't try to construct a portfolio without knowing those basics, It's like someone having some eggs and then trying to make a souffle without any knowledge of cooking.

To labour the analogy a little farther, is your list of funds and the amounts a good recipe.?...why 8.6% Rising Asian growth...is that the baking powder?

economic

When it comes to investing for the long run, its best not to overthink it too much. Just stick with a core part of your portfolio and add single stocks, trusts etc to spice things up.

sixpence.

bostonerimus - I am trying to diversify as much as possible across region. It was made based on reading online. Have ordered the Intelligent Investor book as it comes often recommended... It seems like the more I know the more I don't know with this stuff.

Rising Asian growth and UK growth funds are for accumulation. The single shares are for grown and acc, everything is for diversification.

I figure I will top up the VG 20/80 the older I get alongside other funds and single shares to lower risk.

dunstonh

I am trying to diversify as much as possible across region. It was made based on reading online.

Are they static models or fluid? (i.e. do they change over the economic cycle)
Are you going to be rebalancing them?
Are the models based on sterling or other countries (many internet ones are based on dollar pricing for US consumers)
What is the methodology behind the models or has the person on the internet just made it up?

It seems like the more I know the more I don't know with this stuff.

Well done. That is an important step in your understanding.

sixpence.

"Are they static models or fluid? (i.e. do they change over the economic cycle)
Are you going to be rebalancing them?
Are the models based on sterling or other countries (many internet ones are based on dollar pricing for US consumers)
What is the methodology behind the models or has the person on the internet just made it up?"

In response to this
I believe they would be classified as fluid because they change over the economic cycle.
Yes over the years I plan to balance them so I would be taking whatever amount of risk I'm comfortable with.
As far as I can tell from the investment reports I've read, the models are based on other currencies. For example, in the Asian fund the stocks from the Philippines use the peso. However the majority of the non-UK global funds are US shares. This doesn't bother me.
I don't have a methodology... I have just read a lot and tried to come up with something that is diverse and of a level of risk that fits my age. I can't actually find a specific methodology otherwise I would consider following it... I've just been trying to learn as much as I can. I have about 26k , to invest and it feels dull to just stick it in a 20/80Vanguard fund, but is that a better option?

ColdIron

sixpence. wrote: »

it feels dull to just stick it in a 20/80Vanguard fund

Good investing is often dull

sixpence.

I mean, if this is what you think I should do (and by you I mean the people of MSE forum) I will look further and consider it. I'd rather be richer and duller.

Wouldn't that be a risk as Vanguard could tank? Isn't that a lack of diversification because it's just one fund?

sixpence.

Also, what would be the strategy with Vanguard over a lifetime? Are you supposed to own the 20 in your twenties and thirties and then switch to the 40/60 in your forties and so on? Would you end up selling your current fund and buying another to re balance?