We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Vanguard Target Retirement Funds House Buying
WilliamTi
Posts: 1 Newbie
Are the Vanguard target retirement funds suitable investment vehicles for buying a house in 10-15 years?
One of the benefits is it will convert to bonds closer to the date, but should I just rely on my LS100?
I have the benefit of being able to weather the market so can pursue greater return and buy in 20 years time, if stocks dropped by half, in year 10, say.
One of the benefits is it will convert to bonds closer to the date, but should I just rely on my LS100?
I have the benefit of being able to weather the market so can pursue greater return and buy in 20 years time, if stocks dropped by half, in year 10, say.
0
Comments
-
Do you mean putting your house deposit/purchase savings into, say, a stocks and shares isa or lifetime isa and buying the vanguard funds?
10-15 years is a suitable period of time to invest in an index fund, however I would be rapidly moving into bonds/cash over the last few years (or even if the markets peaked to the point where there is enough to buy the house I want) to avoid the risk of being caught in a downturn at the point when I want to cash out for a house.
The challenge will always be the decision and timing to move out of equities and into bonds or cash. For more control you would continue with the ls100 and as time passed you might choose to buy more bonds and fewer equities (eg buy ls20 or one of the bond only funds). You could combine such a strategy with a decision on when to sell the ls100 and replace with bonds/cash out.
Have you checked the exact profile that the target strategy says it will move into bonds over? Eg the target 2035 may start moving into bonds at 2035 and do it over five years (can't remember from when I read the kiid) - make sure you are happy with the strategy before you pick one if ymtats the route you decide to go.0 -
If you can convert whatever underlying funds or equities there are into cash in that 10-15yrs time, then it's a "suitable investment vehicle".Are the Vanguard target retirement funds suitable investment vehicles for buying a house in 10-15 years?
One of the benefits is it will convert to bonds closer to the date, but should I just rely on my LS100?
I have the benefit of being able to weather the market so can pursue greater return and buy in 20 years time, if stocks dropped by half, in year 10, say.
Or are you asking if this particular fund will outperform the housing market in that time?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards