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Vanguard Fund Question

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I’m am looking to invest in the Vanguard ISA in the new tax year. What I’m unsure of is whether to go for the 60% Equity Fund or the Target Retirement 2025 Fund. There doesn’t seem to be that much difference. A slight variation in charges, namely 0.22% versus 0.24% in favour of the 60% Equity Fund.

I’m 47, and am looking at early retirement in 2025 at age 55. I’m already maxed out on my work pension, ISA this year, and I have most of the 5% savings and Regular Saver accounts. So, the Vanguard ISA looks appealing as a supplementary investment.

Any advice on the Fund to choose? One of the above, or another Vanguard Fund? I have a moderate attitude to risk.

Comments

  • ColdIron
    ColdIron Posts: 9,818 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    From yesterday, might be worth a look

    https://forums.moneysavingexpert.com/discussion/5799686
  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    [FONT=Verdana, sans-serif]I think bond values are likely to go down rather than up over the next few years so I would not invest, at today's prices, in a fund that puts any %age into bonds.

    [/FONT] [FONT=Verdana, sans-serif]I would decide the limit I wanted to put into equities then keep the rest as cash so say 60% equity, 40% cash rather than 40% bonds.

    [/FONT] [FONT=Verdana, sans-serif]Also, unless you intend to cash in all your pensions when you are age 55, why so much in bonds now? You will probably hope to continue drawing down from your pension until you are age 80 or more, which is a 30+ year investment period.[/FONT]
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