Vanguard target retirement fund

CuriousGriffin

Does anyone have any experience with this? I'm still struggling to decide on a personal pension provider that essentially does it all for me. I've read nutmeg is easy but works out expensive. Any experiences? 

CuriousGriffin

Update I'm also aware this isn't a pension so I wouldn't get the tax benefit 

Audaxer

A pension is just a wrapper for the investments therein, so I'm sure the Vanguard target Retirement Fund could be invested in a SIPP.

I am retired and have Vanguard LifeStrategy funds which are fairly similar to the Retirement funds, although the equity bond allocations remain fixed with the LifeStrategy funds. In my opinion they are very good low cost, globally diversified multi asset funds.

CuriousGriffin

Audaxer said:

A pension is just a wrapper for the investments therein, so I'm sure the Vanguard target Retirement Fund could be invested in a SIPP.

I am retired and have Vanguard LifeStrategy funds which are fairly similar to the Retirement funds, although the equity bond allocations remain fixed with the LifeStrategy funds. In my opinion they are very good low cost, globally diversified multi asset funds.

Thank you. Do you have to choose where to invest or does it do it all for you? 

Audaxer

Louise_vj said:

Audaxer said:

A pension is just a wrapper for the investments therein, so I'm sure the Vanguard target Retirement Fund could be invested in a SIPP.

I am retired and have Vanguard LifeStrategy funds which are fairly similar to the Retirement funds, although the equity bond allocations remain fixed with the LifeStrategy funds. In my opinion they are very good low cost, globally diversified multi asset funds.

Thank you. Do you have to choose where to invest or does it do it all for you? 

If you open a SIPP on one of the large investment platforms, you could have a choice of thousands of funds to invest in. If you do want to go down the route of choosing your own investments, I would suggest you do a bit of research first to help you establish your risk tolerance and which multi asset fund(s) and investment platform best suits your requirements. This forum is a good start for doing some research as is sites like Monevator.

dunstonh

The fund is available in pensions, ISAs and investment bond tax wrappers as well as unwrapped. However, i am not a fan of the fund.   It is more expensive and you are left to start higher than your risk profile and/or end up lower than your risk profile.  It would suit a small niche of lazy investors but for most people who insist on using Vanguard, the lifestrategy funds with no risk reductions would be better.

Albermarle

Yes the product would 'do it all for you' . It is for 'lazy investors ' and not perfect , but at the same time there could be a lot worse places to put your money .

CuriousGriffin

Thanks all...
I'm looking at life strategy funds. I'm happy to make my monthly payment and never look at it until I'm 60. I am currently 24. Would it be foolish to go 80/20? 

Albermarle

Many posters on here would say you should go 100% equity at your age . 
In which case you would be probably best with a global index tracker .

CuriousGriffin

Albermarle said:

Many posters on here would say you should go 100% equity at your age . 
In which case you would be probably best with a global index tracker .

excuse my ignorance

When I google global index tracker pension I don't get the results I'm expecting like nothing from Vanguard or any companies I recognise other than Hargreaves Lansdown, but I still don't fully understand... can global index tracker funds make up a pension? 

Audaxer

Louise_vj said:

Thanks all...
I'm looking at life strategy funds. I'm happy to make my monthly payment and never look at it until I'm 60. I am currently 24. Would it be foolish to go 80/20? 

I think for someone your age a Vanguard LifeStrategy 80 is a good choice. As it includes 20% bonds there will be a lesser price drop than a Vanguard LifeStrategy 100 when an equity crash occurs, although it could have slightly lower returns over the long term than a 100% equity fund.

Whatever you choose, bear in mind that there will be equity crashes when your fund value will fall quite a bit, but as you have decades ahead of you until retirement, these times will be of benefit to you as at these times you will be buying fund units at cheaper prices.