VLS100 and 60

Sailtheworld

Albermarle said:

Here is a risk questionnaire
https://www.standardlife.co.uk/c1/guides-and-calculators/assess-your-attitude-to-risk.page

I just don't believe questionnaires like that add much value, if any. 10 questions and out pops your risk appetite just like that.

Appetite for risk needs to be weighed up against your current financial position. Is the mortgage paid off? Do I have a liability falling due next week, next year or in 20 years? If the computer says I'm an adventurous investor can I actually afford to take the risk? What am I taking risk for? Do I need to take risk anyway? Is there a lower risk way of achieving the same objective?

I once had a high risk investment, had a little cry when it went south but my friends would say I'm a risk taker adds nothing when it comes to real life. It's an area which needs deep thought and can't be condensed into ticking boxes - that's just to cover the behind of whoever is selling the financial product.

Sailtheworld

eskbanker said:

btcp said:

Based on the above recommendations it sounds like I should sell one of the funds and invest in the other one, depending on my risk attitude.

Surely you'd sell both of the funds (60 and 100) and buy the third (80) unless you've now decided your risk attitude is actually equivalent to 60 or 100 after all?

That's what I'd do but they could just keep the 60 & 100 and buy 80 from now on. Depends how big the current holdings are vs the trading charges and / or whether the OP would find it annoying to have a portfolio of three VLS products (I would - it's untidy).

btcp

Sailtheworld said:

eskbanker said:

btcp said:

Based on the above recommendations it sounds like I should sell one of the funds and invest in the other one, depending on my risk attitude.

Surely you'd sell both of the funds (60 and 100) and buy the third (80) unless you've now decided your risk attitude is actually equivalent to 60 or 100 after all?

That's what I'd do but they could just keep the 60 & 100 and buy 80 from now on. Depends how big the current holdings are vs the trading charges and / or whether the OP would find it annoying to have a portfolio of three VLS products (I would - it's untidy).

I wouldn’t call it big, 11k ISA with about 50x50 allocation.

btcp

Albermarle said:

Here is a risk questionnaire
https://www.standardlife.co.uk/c1/guides-and-calculators/assess-your-attitude-to-risk.page

Thank for the link. It is so high level and I can answer to every question - It depends It may indicate I am a medium risk overall. at the same time I wouldn’t mind to have some amount invested in risky business for a high return. 

Sailtheworld

btcp said:

Sailtheworld said:

eskbanker said:

btcp said:

Based on the above recommendations it sounds like I should sell one of the funds and invest in the other one, depending on my risk attitude.

Surely you'd sell both of the funds (60 and 100) and buy the third (80) unless you've now decided your risk attitude is actually equivalent to 60 or 100 after all?

That's what I'd do but they could just keep the 60 & 100 and buy 80 from now on. Depends how big the current holdings are vs the trading charges and / or whether the OP would find it annoying to have a portfolio of three VLS products (I would - it's untidy).

I wouldn’t call it big, 11k ISA with about 50x50 allocation.

To convert them into VLS80 is going to cost you 2 sell orders / 1 buy order and the spread. Say £30. That's 0.27% - doesn't sound a lot but it's a full year's fund charge to convert to something which you effectively already have.

I'd find it difficult to look at a portfolio of three products when just one of them would suffice but I also can't see the point of spending money for no reason.

ColdIron

OP is with Vanguard Investor so no trading costs and no spread either

btcp

30 pounds doesn’t sound like a lot. I also feel I may want to do it right from the start (it’s my first year I have S&S ISA)... I am planning to sell my RSA when they vest and put them in this ISA (makes me feel better not to have lots on Etrade and in one bucket). Some people say buy one fund and forget about it for a while, but I am constantly spending time looking at each so maybe focusing on one is more efficient...

Sailtheworld

If you don't have to pay to trade then it's moot - you may as well tidy this up for free.

Hopingforthesimplelife

Sailtheworld said:

Albermarle said:

Here is a risk questionnaire
https://www.standardlife.co.uk/c1/guides-and-calculators/assess-your-attitude-to-risk.page

I just don't believe questionnaires like that add much value, if any. 10 questions and out pops your risk appetite just like that.

Appetite for risk needs to be weighed up against your current financial position. Is the mortgage paid off? Do I have a liability falling due next week, next year or in 20 years? If the computer says I'm an adventurous investor can I actually afford to take the risk? What am I taking risk for? Do I need to take risk anyway? Is there a lower risk way of achieving the same objective?

I once had a high risk investment, had a little cry when it went south but my friends would say I'm a risk taker adds nothing when it comes to real life. It's an area which needs deep thought and can't be condensed into ticking boxes - that's just to cover the behind of whoever is selling the financial product.

This is my sentiment also. I would say I am naturally more cautious but because of that I am in a position where I have a good safety net and solid overall financial footing therefore can afford to be high risk in my investments because it doesn’t matter what happens to them in the short/medium term.

One thing I have sometimes wondered - could risk be refined as a way of considering when you need to actually have access to the money? 

Sailtheworld

Hopingforthesimplelife said:

Sailtheworld said:

Albermarle said:

Here is a risk questionnaire
https://www.standardlife.co.uk/c1/guides-and-calculators/assess-your-attitude-to-risk.page

I just don't believe questionnaires like that add much value, if any. 10 questions and out pops your risk appetite just like that.

Appetite for risk needs to be weighed up against your current financial position. Is the mortgage paid off? Do I have a liability falling due next week, next year or in 20 years? If the computer says I'm an adventurous investor can I actually afford to take the risk? What am I taking risk for? Do I need to take risk anyway? Is there a lower risk way of achieving the same objective?

I once had a high risk investment, had a little cry when it went south but my friends would say I'm a risk taker adds nothing when it comes to real life. It's an area which needs deep thought and can't be condensed into ticking boxes - that's just to cover the behind of whoever is selling the financial product.

One thing I have sometimes wondered - could risk be refined as a way of considering when you need to actually have access to the money? 

It certainly informs what risk can be taken. Nobody would invest £500 on payday if they needed it for a mortgage payment a week later.