1 Year Review. Please advise

Captain_Bravo

It's weekend ... it's also raining outside, so time to read the news and check online banking and portofolio ...

Wait ! Noo, what a big mistake, I see that my Vanguard portofolio is down 6.83%

Ok, but only 2 weeks ago it was UP 19,6 % and I was content.

It's been 6 months since my last post here, was planning to do a 2 year review in September 2020, but now it's clear to me that I need to rebalance my portofolio asap and I'm open for ideas.

So, after 18 months, starting from scratch, I now have:
ISA S&S with Vanguard. Current value: 24183.11 (split in just 3 funds)
a) LifeStrategy 100, 17484.52
b) FTSE 100 ETF VUKE, 1851.20

c) S&P 500 ETF VUSA, 3794.67 + 1000 pending buy order
Combination of bank current and regular saver accounts
From Marcus, TSB, Lloyds to Nationwide: 9000
P2P (Ratesetter & Kuflink) current value 5173.00
Current value of savings&investments pot: 38256

I will keep buying stocks (buy the dip as they say), but I need to decide on one fund from Vanguard Investor to balance my portofolio, hence I ask for your opinion. What do you think it's the best fund to bring some balance ?

Thank you !

Alexland

I am a bit confused in how you are seeing a 25% movement - it might be something strange in how Vanguard calculate your return?

Your account valuation is at a level that if you combine into a single fund eg Vanguard All Cap and add more (eg maturing regular savers and get out of P2P) then fixed charges from iWeb (for infrequent adhoc trades) or Halifax Share Dealing (for regular investing) might be cheaper than Vanguard Investor 0.15%. Still if the market keeps falling your account valuation may further reduce and you might be better off on percentage charges again!

Captain_Bravo

There's nothing strange, two weeks ago they showed +19.6% Personal Rate of Return, and this Saturday - 6.8% ( http://prntscr.com/rda005 ) so yes, it's a drop of 25% from recent high. However not planning to sell anything, au contraire, I still have 2600 remaining of my ISA allowance and I'm trying to find and buy a fund in Vanguard that can bring some balance to my VLS100 + VUKE + VUSA portfolio.

For next year I'm planning to keep adding ~ 1000 pounds / month to this portfolio (standing order) and occasionally add extra cash, in order to use my ISA allowance to the max, so an average of 20 'trades' . I will read more about iWeb and Halifax ISA S&S to see the threshold when they become cheaper than Vanguard ISA S&S.

I dont have more than 20k per year to invest just yet, I'm already saving and investing aprox 60% of my monthly income.

Another good news is that both me and my wife started a Vanguard SIPP last month (they just launched the product). yay !

Never to late to do the right thing Thank you !

eskbanker

Captain_Bravo said:

two weeks ago they showed +19.6% Personal Rate of Return, and this Saturday - 6.8% ( http://prntscr.com/rda005 ) so yes, it's a drop of 25% from recent high.

For the record, that's not how percentages work - 119.6 to 93.2 is a 22% drop....

Thrugelmir

Is your mortgage rate over 3% still? 

Captain_Bravo

@eskbanker thanks, it's a 22% drop, correct.

@Thrugelmir yes, my current mortgage deal (3.29%) ends on 2 July 2020

I've got a letter on Friday from Santander, to inform me that I have new deals available, however all new deals are worse than current deal, except one that is identical. Probably the valuation they use for my house it's lower than 2 years ago, since I live in Aberdeen and oil&gas industry is still in crisis, affecting house prices here, hence LTV must be same or bigger than previous.

atush

Captain_Bravo said:

My wife is self employed, no pension plan, she is 37 and kinda thinks it's to early to think about pension Also I noticed a lot of people who are employees speak about pension but all self employed people I know have no pension plan whatsoever.
We have 2 kids, our girl is 9 and our boy is 5, so still small...
Thank you

It isnt too early, she should have been in one for 10 years by now.

Get her to start one

atush

You are trading as a LLC, why arent you using a pension instead if ISA?

Thrugelmir

Captain_Bravo said:

@eskbanker thanks, it's a 22% drop, correct.

@Thrugelmir yes, my current mortgage deal (3.29%) ends on 2 July 2020

I've got a letter on Friday from Santander, to inform me that I have new deals available, however all new deals are worse than current deal, except one that is identical. Probably the valuation they use for my house it's lower than 2 years ago, since I live in Aberdeen and oil&gas industry is still in crisis, affecting house prices here, hence LTV must be same or bigger than previous.

I'd personally exit P2P and use the cash to reduce the mortgage debt.