Vanguard Life Strategy funds Versus Vanguard Target Retirement funds

singhini

@Albermarle Thanks
Yes your right, its not a pot its the Transfer Value 
It is linked to inflation so the £4,500 calculation is a bit misleading 

But what to do with all this cash?????????

singhini

AlanP_2 said:

at the moment you are drifting as you don't know what you are aiming for. 

Yea i agree. i need to do more thinking

Thanks

firestone

singhini said:

AlanP_2 said:

at the moment you are drifting as you don't know what you are aiming for. 

Yea i agree. i need to do more thinking

Thanks

Without going down to far down the road of how long you will live but hopefully longer then you think (if its health related then also look up pension annuity at some point in the future) or where your unemployment will go you are taking a view of about 15 to 18 years.
Assuming rules don't change over that time you would be able to take a lump sum out at the time of taking the pension (so more cash  ) and there would be your govt. pension coming in to add to your figures
Seeing as you like cash and are some what undecided would it not pay to invest the SIPP money you have as cash first and do something else with the ISA money? (or transfer to keep its status).Or are you planing to go big with both if so remember the pension money will be tied up for a few more years yet

Albermarle

singhini said:

@Albermarle Thanks
Yes your right, its not a pot its the Transfer Value 
It is linked to inflation so the £4,500 calculation is a bit misleading 

But what to do with all this cash?????????

Yes the cost of the inflation linking is more expensive than most people think . Personally I would leave the DB pension alone , the transfer offer is pretty poor anyway .

Thrugelmir

IvanOpinion said:

On a related note, are these Target Retirement products really the way forward?  When I retire I would like to think that I will have 25-35 good years ahead of me - surely then it is worthwhile keeping a significant portion of my investments in equities.  If the target retirement funds start disinvesting 10 years before retirement then surely that is too early?  

Pick a fund that doesn't disinvesting until a later date. There's no requirement to chose one that ties into your actual retirement plans. Equities aren't always a comfortable holding. In retirement maintaining what you've got may well prove a better option than speculating to gain even more.