S&S ISA - Diversify monthly amount (currently Vanguard Lifestyle 80% Equity)

soprano81

Hi All, 
Currently investing £500 per month into Vanguard LS 80% Equity which is currently performing very well (worryingly so!) since I opened in Dec 2018.
The plan is to increase my investments to £750 per month from June and then hopefully £1k per month from Jan 2022.
40 years old and looking for this to be a 20 year investment. High Rate Tax Payer and splitting my monthly savings 50/50 between S&S ISA and Pension.
Concerned at the moment that currently all my funds sit in one place.
Can you guys recommend another Vanguard fund to invest in? I am a passive investor and find their website easy to navigate. 
Also should I be worried that it all sits in the 80% Equity or should I look to move some of this out.

Thanks 

Albermarle

You are looking at what to invest in your S&S ISA, but no mention of how your pension is invested ?
They should not be looked at in isolation from each other, or from other financial parts of your life . Cash savings, mortgage etc 
So you will not get very sensible guidance without the fuller picture being available, although normally for a higher rate taxpayer the pension is the priority , dues to the very generous tax relief available .

dunstonh

Concerned at the moment that currently all my funds sit in one place.

They are not.

Can you guys recommend another Vanguard fund to invest in? I am a passive investor and find their website easy to navigate. 

VLS80 is not a passive fund.  It is a fettered fund of funds.  It invests in a range of other Vanguard funds with the asset weightings managed by Vanguard.  Those underlying funds are passive.

So, by default, you are already investing in a range of Vanguard funds.    The only reason to invest in more is if you wish to add your own management decisions as you disagree with Vanguard's management decisions.

Also should I be worried that it all sits in the 80% Equity or should I look to move some of this out.

if it worries you then yes.  If it doesn't worry you then no.  Can you handle a 35% loss?

Thrugelmir

There's always their Target Retirement range to consider. If you would prefer a totally passive approach to investing.  

JohnWinder

dunstonh said:

if it worries you then yes.  If it doesn't worry you then no.  Can you handle a 35% loss?

That's a good way to look at that issue. But it might help even more if you look at it in even more detail: how long will that loss last or will it be permanent?  dunstonh might have had in mind that equities can drop 44%, which would drop your 80% equity fund by 35% (if all else didn't change), but for how long?  Four or five years might be a reasonable estimate. https://earlyretirementnow.com/2019/10/30/who-is-afraid-of-a-bear-market/

Have a look at some long term charts of price fluctuations, ideally inflation adjusted, to get a feel for how risk averse you are (if that's the sort of risk you worry about). https://evergreensmallbusiness.com/rate-of-return-of-everything-study-in-line-charts/