Vanguard Target Retirement Funds

fronty

I just stumbled across this:

https://www.vanguardinvestor.co.uk/investments/vanguard-target-retirement-2030-fund-accumulation-shares

I'm 50 so this looks like their 2030 fund is a good fit for someone as lazy as me - they take care of the asset allocations as I get older, so I would have absolutely no need to do anything. The Vanguard site says it's currently invested 66% equities, 34% bonds. The 2035 fund is 71% vs 29%.

Looks like it's too new for the 5yr performance figure column but it already looks like it's doing better than my pension with much lower fees.

Quite liking the look of this, proper set and forget...

adindas

Could this one be used to fund SIPP ??

fronty wrote: »

I just stumbled across this:

https://www.vanguardinvestor.co.uk/investments/vanguard-target-retirement-2030-fund-accumulation-shares

I'm 50 so this looks like their 2030 fund is a good fit for someone as lazy as me - they take care of the asset allocations as I get older, so I would have absolutely no need to do anything. The Vanguard site says it's currently invested 66% equities, 34% bonds. The 2035 fund is 71% vs 29%.

Looks like it's too new for the 5yr performance figure column but it already looks like it's doing better than my pension with much lower fees.

Quite liking the look of this, proper set and forget...

fronty

adindas wrote: »

Could this one be used to fund SIPP ??

I don't know, info seems to be a bit scarce, no factsheet on trustnet, seems a bit odd, still researching...

MK62

They are basically roughly equivalent to Lifestrategy funds with risk reducing profiling built-in.

Some like the profiling.....others (inc me), would prefer to do that themselves (if done at all that is).....


PS.....so this year the TR2030 fund would be roughly equivalent to Lifestrategy 66, next year it will be Lifestrategy 65........in 2030, probably Lifestrategy 55......and so on......


PPS....if I was aiming to gradually reduce exposure to equities and increase exposure to bonds as I approached retirement, there's no guarantee I'd do it any better (or worse) than a TR fund though.....

badger09

But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?:cool:

Albermarle

But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?

From a logical investment point of view , you would not want to derisk going towards retirement , if you were planning to drawdown the fund over 20-30 years.
However from a more emotional point of view most ( not all) investors will want to go a bit more defensive and not risk big drops just when they retire .
Some even just stay in cash , which is the other extreme of course.

MK62

badger09 wrote: »

But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?:cool:

That might depend on your goals.......if the "magic" figure has already been reached at retirement (and generally it should have been or else retiring could itself be a considerable risk), some might argue that you should not take on unnecessary higher levels of risk in the pursuit of even more......you may get more, but it could also backfire (perhaps spectacularly).