Does anyone hold a LISA with EQi?

Alexland

VLS60 seems a bit tame for a 20 year investment. Also if you did transfer the LISA out don't forget to close the dealing account..

OldManLogan

Alexland said:

VLS60 seems a bit tame for a 20 year investment. Also if you did transfer the LISA out don't forget to close the dealing account..

I considered 80/20 but it's just my attitude to risk at the moment! Could potentially change, will reconsider options for the 10 years from 50 to 60 when can no longer contribute as well

Alexland

OldManLogan said:

I considered 80/20 but it's just my attitude to risk at the moment! Could potentially change, will reconsider options for the 10 years from 50 to 60 when can no longer contribute as well

This article might help. With 20 years ahead that's probably a couple of economic cycles so if you grow a hard skin to the volatility and focus on the long term positive outcome it seems a shame to be holding such a high proportion of low return bonds. It would be better to derisk as you approach withdrawal not the other way around. I'm happier when markets have crashed as it means my contributions are buying a greater number of cheaper units. I am primarily a unit collector not a capital seller. Just remember that when prices are low that's what other people are selling at - you would only sell when prices are high again.

https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/

OldManLogan

Alexland said:

OldManLogan said:

I considered 80/20 but it's just my attitude to risk at the moment! Could potentially change, will reconsider options for the 10 years from 50 to 60 when can no longer contribute as well

This article might help. With 20 years ahead that's probably a couple of economic cycles so if you grow a hard skin to the volatility and focus on the long term positive outcome it seems a shame to be holding such a high proportion of low return bonds. It would be better to derisk as you approach withdrawal not the other way around. I'm happier when markets have crashed as it means my contributions are buying a greater number of cheaper units. I am primarily a unit collector not a capital seller. Just remember that when prices are low that's what other people are selling at - you would only sell when prices are high again.

https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/

I absolutely agree, I understand the long term potential benefits and my plan is to potentially de-risk further as I near withdrawal, the 60/40 is based on my own risk attitude and circumstances etc. It probably is over cautious at the moment but I am fairly new to investing and suits at the moment. I did look at the Vanguard Retirement Funds that de-risk for you as you approach a specified date but settled on the 60/40 for now

Alexland

OldManLogan said:
I did look at the Vanguard Retirement Funds that de-risk for you as you approach a specified date but settled on the 60/40 for now

Your ideal asset allocation glidepath depends what you will do at 60. VTR2040 is currently 74% equities which still seems a bit light for 20 years and it would reduce to 50% equities by the time you are 60 which might be good for a total withdrawal but seems light for sustainable drawdown of inflation linked income. With current bond prices its hard to see how a 60/40 fund will deliver much more than inflation after fees. Equities are also expensive but at least they are likely to deliver an above inflation return if you can stomach the volatility.

OldManLogan

Alexland said:

OldManLogan said:
I did look at the Vanguard Retirement Funds that de-risk for you as you approach a specified date but settled on the 60/40 for now

Your ideal asset allocation glidepath depends what you will do at 60. VTR2040 is currently 74% equities which still seems a bit light for 20 years and it would reduce to 50% equities by the time you are 60 which might be good for a total withdrawal but seems light for sustainable drawdown of inflation linked income. With current bond prices its hard to see how a 60/40 fund will deliver much more than inflation after fees. Equities are also expensive but at least they are likely to deliver an above inflation return if you can stomach the volatility.

My main aim is to beat inflation with modest growth/return, I'll be honest I hadn't really considered a drawdown income so need to look into that more. Thanks for all of your help, lot to consider. First thing I need to decide when/if to transfer to AJ Bell, probably worth it long term with uncertainty around II price structure.