Vanguard - where do I start?

stuckinazoo

Hi all

So Vanguard is one of those providers that most people seem to agree on in terms of lower risk and reliability. But with the bewildering amount of Vanguard options, I'm unsure who to choose. All I know is that it should probably be global.

My situation is I'm early 30's and investing using a lifetime ISA with AJ Bell that I want to keep for retirement age as a backup to my pensions. I want to put in £50 a month, although probably in the form of 2 lump payments 6 months apart. I have set aside £500 to maybe make a first payment.

I'd be interested in any advice or experience you could offer, thanks.

xylophone

https://monevator.com/using-vanguard-lifestrategy-funds-life/
might help.

Alexland

Vanguard Investor has much less choice than AJ Bell so I wonder how you selected from thousands of investment options? Unless you went for their cash cow own brand passive funds perhaps?

I understand from another forum member that once you have made the first £500 lump sum on Vanguard Investor you should be fine to setup a regular monthly investment below the stated £100 per month.

Alex

stuckinazoo

xylophone wrote: »

https://monevator.com/using-vanguard-lifestrategy-funds-life/
might help.

Thanks for link

Zorillo

My LISA is in VLS100 as it's 24 years until I can access it and because the balance is relatively low the volatility doesn't concern me in the slightest. I imagine I will dial it back a bit when I get closer to retirement.

stuckinazoo

Alexland wrote: »

Vanguard Investor has much less choice than AJ Bell so I wonder how you selected from thousands of investment options? Unless you went for their cash cow own brand passive funds perhaps?

I understand from another forum member that once you have made the first £500 lump sum on Vanguard Investor you should be fine to setup a regular monthly investment below the stated £100 per month.

Alex

With AJ Bell LISA, you don't have to make an investment immediately (or ever in theory although that would defeat the object) so you can just have the cash plus government bonus mounting up until you're ready. But as it was, I did invest in four funds I'd read about or felt I could experiment with plus the AJ IPO. Vanguard however is a different prospect as I want it to be my sensible saver over decades rather than than try and make a quick profit over a year or two. I'm finding it difficult to pick one out.

To be clear I'm not setting up on a Vanguard platform but investing in Vanguard through AJ Bell.

Thrugelmir

stuckinazoo wrote: »

So Vanguard is one of those providers that most people seem to agree on in terms of lower risk and reliability.

Lower risk? Investing in the stock markets always carries a degree of risk. As holders of the Nikkei index in 1989 can certify.

Good marketing allied to a competitive cost pricing structure sells a compelling story. Vanguard themselves take no risk they simply cream off fees for managing other peoples money effortlessly. Though Vanguard do not disclose what their executives earn.

DrSyn

The VLS fund is as good a place as any to start. It basically follows the approach in the video below:

http://www.kroijer.com/


Have a look at the following:

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

https://www.ifa.com/indexfundsthemovie/

dunstonh

So Vanguard is one of those providers that most people seem to agree on in terms of lower risk and reliability.

Actually, at the lower risk end of the scale, Vanguard is a little weaker than the alternatives. At the higher risk end of the scale, it is a little stronger. Vanguard's VLS funds are not risk targeted. This will not concern the more adventurous investor but it is an issue for the more cautious investor.

Alexland

Zorillo wrote: »

My LISA is in VLS100 as it's 24 years.

I like VLS60 and 80 but never understand why someone on a broad DIY platform like YouInvest or HL would choose VLS100 when there are lower cost 100% equity funds available such as HSBC FTSE All World or the HL discounted Blackrock Consensus 100 funds?

stuckinazoo wrote: »

With AJ Bell LISA, you don't have to make an investment immediately (or ever in theory although that would defeat the object) so you can just have the cash plus government bonus mounting up until you're ready.

Yes, I used to have an account with YouInvest, but if you did that too long that would be accepting defeat against inflation eroding your spending power.

stuckinazoo wrote: »

But as it was, I did invest in four funds I'd read about or felt I could experiment with plus the AJ IPO. Vanguard however is a different prospect as I want it to be my sensible saver over decades rather than than try and make a quick profit over a year or two. I'm finding it difficult to pick one out.

Without knowing your risk tolerance it's hard to comment but how about being sensible with both ISAs and going with HSBC Global Strategy Dynamic or Blackrock Consensus 85 in the LISA and going with either VLS80 or a 2 fund portfolio of 80% Vanguard FTSE Global All Cap and 20% Vanguard Global Bond Index Hedged in the S&S ISA.

These options are highly likely to outpace inflation and fees over the long term but in a nasty market crash could temporarily drop around 40%.

Alex

Zorillo

I have my reasons but stated publicly they'd just look like excuses