Switch to VLS 80?

webjaved

chelseablue wrote: »

Thank you all

I think I thought it wise to move it so I'd have a mix of bonds and equities so I don't 'have all my eggs in one basket' but this is my first time with a S&S Isa so I'm not an expert. As you can all probably tell :rotfl:

We all have to start somewhere, with the advice of the members on here you will learn quite quickly along with doing a little research yourself. The MSE community is amazing. :T

BarleyGB

I started a HL SIPP in December (taking advantage of the market dip).

Didnt start with much but split it betweeon VLS80 & VLS100 50:50

VLS80 is up 4.5%, VLS100 is up 5.5%

Which one youll choose (60, 80, 100) should depend on your risk profile, the investment vs your wider 'portfolio' etc.

For me this new SIPP currently represents about 1.5% of my overall investments, I also have a significant Defined Benefit pension.

Aylesbury_Duck

Alexland wrote: »

Rather than mix two VLS funds wouldn't it be cleaner to just go 80% Vanguard FTSE All Cap fund at 0.25% (or All World ETF at 0.24%, or VLS100 at 0.22%) and 20% Vanguard Global Bond Hedged at 0.15%? The total fund fees would be a similar weighted average and you would have more control on the allocation and what asset class you are selling if you chose to withdraw?

Alex

Thrugelmir wrote: »

With bonds trading above nominal par value. Then could be as volatile as equities. More so if interest rates were to rise.

Thanks both. I'm relatively new to all of this and you and others were good enough to get me started with my basic strategy last summer. I'm learning all the time so thanks for the advice.

talexuser

On 20 year timescale i would be going 100% equities. After 10 years or so then look again, after you have seen a real crash or two and then perhaps split into a slightly more defensive choice. You will have more of an idea of the risks after seeing a crash and recovery. A lot depends on how long central banks rule the roost rather than a free market. Lifestrategy has 25% UK weighting, which has the advantage of reducing currency risks, but the disadvantage of losing out on growth if the UK economy tanks. HL is an expensive platform in this instance which will add up significantly over that timescale.

matt1983

A few people advicing to switch to Vanguard platform from Hargreaves Lansdown for the cheaper fees . . . would doing that really make much of a saving? Im with HL and very happy with the website, app and customer service, and from what ive worked out, switching to a cheaper platform isnt really going to save me a huge amount.

ColdIron

Depends what you think is a huge amount. That 0.30% difference is £3 or the price of a coffee on £1,000. On £100,000 it's £300 each and every year. If your sums are low then the difference is not really that important. If you have a six figure sum and a long term buy and hold strategy that annual difference is hard to swallow given HL wouldn't be doing much to earn it. Horses for courses

eskbanker

ColdIron wrote: »

Depends what you think is a huge amount. That 0.30% difference is £3 or the price of a coffee on £1,000. On £100,000 it's £300 each and every year. If your sums are low then the difference is not really that important. If you have a six figure sum and a long term buy and hold strategy that annual difference is hard to swallow given HL wouldn't be doing much to earn it. Horses for courses

Also worth noting that those advocating the lower cost platform are highlighting that it'll make a difference over 20 years, i.e. that 0.3% pa would become much more significant when compounded over the long term.

Alexland

matt1983 wrote: »

A few people advicing to switch to Vanguard platform from Hargreaves Lansdown for the cheaper fees . . . would doing that really make much of a saving? Im with HL and very happy with the website, app and customer service, and from what ive worked out, switching to a cheaper platform isnt really going to save me a huge amount.

For funds HL are 3x the price of Vanguard Investor - that's a big difference on fees. Reducing cost (which otherwise compounds each year) is one of the few ways an investor can guarantee an enhanced return which is especially important as we are chugging on with low market return expectations for the next decade.

If you want to stay with HL then using a discounted fund (such as Blackrock Consensus) can reduce the total fee difference. Also when you get enough money in the account (probably around £15-20k) it can make sense to switch a lump sum from a fund to ETF to reduce platform fees.

Alex

AlexDee

As others have said, for the amount you have, I’d consider moving the ISA to take advantage of cheaper fees which will enable you to maximise the return available.

With a horizon of 20 ish years I would think VLS100 is fine but obviously you have to hold an investment product in line with your own personal tolerance to risk. I originally held VLS80 but transferred it all to the 100 fund as my investing horizon is circa 30 plus years. As I get older I’ll consider dropping the equities percentage but that won’t be for a while.