When to consolidate Vanguard ISA funds

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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vigmanvigman Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I wrote a while back that I had spread my Vanguard Life Strategy funds over the 20% 40% 60% and 80% funds. It was pointed out that I should stick to one or possibly two funds with no benefit in the spread I had bought. (I thought that the 80% fund would have different equities than the 20% fund and therefore this was like buying unique funds with different levels of risk. I'm still not sure if the same equities are used in the different funds eg does the 40% fund have all the 20% fund equities in?)

The funds have dropped approximately in the ratio of 1,3,5,7% from the 20% to 80% funds.

Anyway, I'm going to move the 60 and 80% funds to the 20 and 40% funds as long term investing does not match my current health prognosis!

My question is: In order to minimise loss, should I just move out of the high risk funds now or should I wait until these have increased in value, please, to somewhere near the original investment?

TIA

Vigman
Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.

Replies

  • eskbankereskbanker Forumite
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    vigman wrote: »
    Anyway, I'm going to move the 60 and 80% funds to the 20 and 40% funds as long term investing does not match my current health prognosis!
    Even though the 20 & 40 are less volatile than the 60 & 80, they should still be regarded as long term products, so if you aren't in a position to invest for the long term then you ought to be looking at cash options instead.
    vigman wrote: »
    My question is: In order to minimise loss, should I just move out of the high risk funds now or should I wait until these have increased in value, please, to somewhere near the original investment?
    While buying high and selling low is rarely a recipe for success, you should concentrate on holding what you feel is right for the present and future, rather than being swayed by what's happened in the past. There's obviously no guarantee of upward movement in the near future, so how would you feel if the prices drop further over the next few months?
  • AlexlandAlexland Forumite
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    Only continue investing in you don't need access until at least 5 years time otherwise its time to start derisking back to cash. The return on VLS20 or 40 after fees is unlikely to be much better than the best cash products anyway.

    Alex
  • vigmanvigman Forumite
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    Thanks everyone. I forgot to ask, in the event of my death what happens to my ISAs ( cash and S&S) Are they transferable as ring fenced tax free sums to my wife or do they have to be cashed in?

    TIA

    Vigman
    Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
  • eskbankereskbanker Forumite
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    vigman wrote: »
    I forgot to ask, in the event of my death what happens to my ISAs ( cash and S&S) Are they transferable as ring fenced tax free sums to my wife or do they have to be cashed in?
    Effectively yes, although it's not literally a transfer as it's structured as an Additional Permitted Subscription, i.e. she gets an extra ISA allowance that's the same value as your ISAs.
  • AlexlandAlexland Forumite
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    As part of the APS the investments in the old S&S ISA would need to be sold down but there's nothing stopping your partner buying the same investments in their own S&S ISA with their extra contribution allowance (provided they find an ISA manager who supports APS). There might be a little bit of time out the market while the money is moving around during which time the unit prices could go up or down. Still if you are deceased you probably have more important things to worry about.
  • badger09badger09 Forumite
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    Alexland wrote: »
    As part of the APS the investments in the old S&S ISA would need to be sold down but there's nothing stopping your partner buying the same investments in their own S&S ISA with their extra contribution allowance (provided they find an ISA manager who supports APS). There might be a little bit of time out the market while the money is moving around during which time the unit prices could go up or down. Still if you are deceased you probably have more important things to worry about.

    Such as?:D
  • AlexlandAlexland Forumite
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    If you are going up, down or being reborn as a different creature perhaps?
  • badger09badger09 Forumite
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    Alexland wrote: »
    If you are going up, down or being reborn as a different creature perhaps?

    Hope I don't die in a lift:p

    Or on takeoff or landing, though I did think that was a distinct possibility earlier this month during 2, very last minute, aborted landings returning from HK:eek:

    I've always fancied reincarnation as a tree. Suppose if my ashes are scattered beneath one, I will become one - sort of:o

    Apologies for random musings
  • AlexlandAlexland Forumite
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    badger09 wrote: »
    I've always fancied reincarnation as a tree.

    Maybe a magic money tree? My son is afraid of trees so would never visit.
  • kidmugsykidmugsy Forumite
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    vigman wrote: »
    My question is: In order to minimise loss, should I just move out of the high risk funds now or should I wait until these have increased in value, please, to somewhere near the original investment?

    The investment neither knows nor cares what you originally paid for it. You won't hurt its feelings by selling now.
    Free the dunston one next time too.
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