SIPP Flexi access drawdown based on Vanguard Lifestrategy x% equities

BPL

Has anyone considered or done this? I loved the low cost of 0.22pc plus platform fee 0.2pc and the fact these funds are rebalanced without having to pay an ifa or diy effort. I'm thinking accumulation and sell units for income rather than natural yield from distribution. 

[Deleted User]

Perfectly normal way of doing it. Although I use a barbell approach with a slightly less risky fund as well (just in case I am selling during a prolonged downturn)

BPL

I was thinking of 20% equities perhaps alongside 100% or 80% so i can result adjust the equity / bond allocation. I'm trying to keep it simple as I'm stupid ;-) what are you using due your barbell?

Thrugelmir

Not just the fees to be considered. Also the funds performance. 

Albermarle

If you mean using Vanguards platform then for now drawdown is still not available . However you can of course hold the VLS funds on other platforms that do offer drawdown.
Some people think the VLS funds have a drawback in that they have a too high home/UK  bias and due to this they have not performed as well as similar funds with no home bias during this year . Maybe next year it will be different of course .
Personally I would look at having my investment split between two multi asset providers , as though they are all similar , they are not the same .https://monevator.com/passive-fund-of-funds-the-rivals/

[Deleted User]

BPL said:

I was thinking of 20% equities perhaps alongside 100% or 80% so i can result adjust the equity / bond allocation. I'm trying to keep it simple as I'm stupid ;-) what are you using due your barbell?

I have quite a large and diversified portfolio. But at that end it is CGT, PNL, MyMap3 and cash. (four years of spending)

BPL

Thrugelmir said:

Not just the fees to be considered. Also the funds performance. 

I'm a passive investor (evidence based) and given that past performance is no guide to future performance i have to look for diversification. Paying another 0.11% to vanguard to rebalance seems value for money. 

OldMusicGuy

I nearly do this (not on the Vanguard platform). One of the VLS funds is my core holding, augmented by smaller holdings in two other multi-asset funds. Because I have three funds it does mean I do a little bit of rebalancing but it's not complicated. It's working fine for me.

Thrugelmir

BPL said:

Thrugelmir said:

Not just the fees to be considered. Also the funds performance. 

I'm a passive investor (evidence based) and given that past performance is no guide to future performance i have to look for diversification. Paying another 0.11% to vanguard to rebalance seems value for money. 

Vanguard VLS funds make an active choice as to fund allocation. Passively active.  

BPL

Thrugelmir said:

BPL said:

Thrugelmir said:

Not just the fees to be considered. Also the funds performance. 

I'm a passive investor (evidence based) and given that past performance is no guide to future performance i have to look for diversification. Paying another 0.11% to vanguard to rebalance seems value for money. 

Vanguard VLS funds make an active choice as to fund allocation. Passively active.  

Yeah i understaff they are classed as passive or "stable" as the"active" management is limited to transparent rebalancing for diversification. They aren't claiming to"beat the market".

TBC15

I thought the platform fee was 0.15%?