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Vanguard LifeStrategy basic investment query

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Couple of quick questions if anyone can help thanks.

I am looking to put a small lump sum of maybe £10,000 into one of the Vanguard LS funds for 10-15 years. I'm pretty risk adverse, and plan just to leave it and ignore it apart from sporadic additions if and when able. Is that a sound enough thing try out some kind of investment? This is just some extra money I've received and so am looking to try something different (for me) with it, aside from the usual overpaying mortgage, adding to a pension etc. 

Also, I already have an account with HL, is there any reason not to just set this up via that account as opposed to direct with Vanguard?

Comments

  • tacpot12
    tacpot12 Posts: 9,247 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    I think it is a sound enough idea, providing you are happy with the level you are fund your pension at. I think it is a good idea to dip your toe into long term investing if it is not something you have done before. 

    The advantage to not using the HL account you already have should be that Vanguard is cheaper, in terms of platform (account/custody) charges. The fund charge will be the same, but HL might give you some discount on this, so check carefully as to what the charges will be. I expect the different will be very small on £10,000, so it probably shouldn't influence you to much.  

    The other thing to think about is that although your money will be protected, platform providers occasionally have IT glitches that mean you can't withdraw money for a short period (anything from a few hours to a couple of days). Having you money with two different platform providers gives you an alternative source of funds in you absolutely must get hold of some money quickly.

    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • If you only want to invest in vanguard funds will be cheaper to go for vanguard platform (0.15%) rather than HL (0.45%) - assuming you have not subscribed to HL this tax year and have £10,000 ISA allowance (Assuming you plan to use Stocks and Shares ISA). If you aren't planning to touch would be even cheaper via iWeb - one off £25 fee then no annual charges (but £5 per trade). 

    If you don't need to money for 10-15 years then investing would seem sensible. 

    Pension is more tax efficient but obviously not accessible in the way Stocks and Shares ISA is. 
  • ColdIron
    ColdIron Posts: 9,824 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    It's a sound enough plan. Obviously use an ISA. HL don't offer any discount on Lifestrategy. If you haven't made any payments to an ISA this financial year Vanguard investor will charge you £15 pa while HL will cost £45 each year
  • Albermarle
    Albermarle Posts: 27,831 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    You may not be aware but other companies offer similar products to Life strategy, also at different equity/risk levels and some have a better performance record recently, especially during the COVID downs and ups . . They will also be available on HL ( but not on the Vanguard site . Here is a comparison table , although some of the info is from 2019 
    https://monevator.com/passive-fund-of-funds-the-rivals/

  • DireEmblem
    DireEmblem Posts: 930 Forumite
    Part of the Furniture 500 Posts Name Dropper
    You could also hold a UCITS etf such as VWRP - it has cheaper fees I believe but a similar goal.
  • Mistermeaner
    Mistermeaner Posts: 3,019 Forumite
    Part of the Furniture 1,000 Posts
    Depending on your age have you looked at a LISA (if under 40)
    Left is never right but I always am.
  • Albermarle
    Albermarle Posts: 27,831 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    You could also hold a UCITS etf such as VWRP - it has cheaper fees I believe but a similar goal.

    This is a 100% equity tracker . Fine if you that is what you want but the OP said I'm pretty risk adverse, which ia presumably why he was looking at the Life strategy funds, which apart from one, are not 100% equity and so a different product altogether from VWRP. 

  • mac.d
    mac.d Posts: 1,387 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you don't need to money for 10-15 years then investing would seem sensible. 

    Pension is more tax efficient but obviously not accessible in the way Stocks and Shares ISA is. 
    My pension provision is pretty small, and that's not likely to change, but I should probably just put this 'extra' cash into it regardless. However, the attraction of it being more accessible in case I need it in 10 years rather than waiting until I retire is why I'm looking at investing.

    Thanks for all the helpful replies.
  • mac.d said:
    If you don't need to money for 10-15 years then investing would seem sensible. 

    Pension is more tax efficient but obviously not accessible in the way Stocks and Shares ISA is. 
    My pension provision is pretty small, and that's not likely to change, but I should probably just put this 'extra' cash into it regardless. However, the attraction of it being more accessible in case I need it in 10 years rather than waiting until I retire is why I'm looking at investing.

    Thanks for all the helpful replies.
    You can always look at investing in stocks and shares ISAs now and moving into a pension in the future, thereby gaining the same benefit from the tax relief. As long as you are invested in same fund(s) in both cases you won't gain/lose investment returns. One obvious drawback of this as a 'strategy' is the potential to fall foul of annual contribution limits. 
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