Pensions - Baptism of Fire

mr97

gm0 &  mark88man  Thank you very much. 
I really do struggle with all of this.  It did cross my mind that if VLS60 was so good, then it would be an obvious choice for all who wish to 'set and forget'.  Being a bit of a sucker for nice graphs I only focused on this being a good balance re. my level of risk/caution and, if I'm honest, I imagined I would just let it work its magic until it was time to sell. 
Since I first started using the internet I twigged and accepted that 'if it's too good to be true, it probably is', however, this whole investing arena has me especially vigilant and equally baffled   My one saving grace is the level of caution I have which has ultimately helped me not act in haste.  And, get some guidance.
The target retirement fund - if my thinking is correct - sort of factors in the whole bonds to equities ratio.  As I approach retirement age, the balance shifts in favour of bonds. From 80% equities at the beginning, for example,  down to 30% towards the end.    Vanguard termed this they glide path.   Forgive if I'm wrong or have misinterpted your information but I'm I right in thinking that if, using LifestyleStragies as an example, it would be better to start with say a VLS100 and adjust for my own 'glide path' accordingly, such as over the years changing my own bond to equities ratio: LS80  > LS60  > LS40 to Bonds/cash > sell.  
During my research, I have read about balancing self-managed portfolios.  Is increasing bonds, decreasing equities, towards retirement, a sort of secondary long term rebalancing, in order to ultimately sell the fund within say a certain year/s?  
Oh boy, I'm really feeling cautious about hitting the 'post comment' button as I fear my whole thinking is off re. passive tracking funds.  
Again, I'm really sorry guys if I haven't grasped the basics with this!  I have been reading a lot but with this kind of subject matter, my own internal ratio of comprehension /understanding needs a little portfolio tweaking too. lol
Thanks again guys.



 

mark55man

to be clear (an possibly to help in the short term) what I said is not important while you are building the pot ie only investing and a lot of people like LS60 (more common than 80 or 100).  The observation about how to draw down is something you have 10 years to get straight in your head 

mr97

mark88man  Thank you 
I think this is all very much highlighting timeframes. I've quite literally stepped from a world of high st savings accounts or semi-locking my money away for 1 year for 1.85% (with a 3 withdrawal max)  online saver.  
My understanding is growing but so is my awareness of how little I actually know in many respects lol.  So many factors to consider and no two people are the same regarding future goals, timeframes, age, risk threshold etc. 
The idea of the LS60 appeals to me especially as I wish to focus on my studies.  You are right that I have time - 10yrs - to figure out such matters.   Investing is turning into a monster but only because of my traits - I'm quite B&W with my thinking and a real worry merchant.  Strange but I suspect I'd not worry with market fluctuations as it does seem to have a general pattern lol.  
It must be very difficult to give guidance too, especially when someone has only a slight grasp - it's akin to a language barrier.  Like learning a new language, I figure time, patience and practise key.   
Thanks again for your time. Hopefully one day I can help someone out too.
Have a good one.