Vanguard Index Funds

eskbanker

Thrugelmir said:

eskbanker said:

Thrugelmir said:

Didn't berate. Merely corrected the very basic misunderstanding. That seems to be constantly repeated on the forum.   

I'm not sure it's a misunderstanding as such -

That's your opinion. Little point in asking me. I'm merely expressing a personal view. Based on what has been written previously in this regard.  Which often turns into gospel as it's relayed on and on. With no degree of comprehension. Hopefully there'll be clarification in due course. 

Someone who is 'merely expressing a personal view' shouldn't shout down an alternative view with "That's a totally inaccurate statement" when both views are valid and accurate in their own contexts - your preference for accounting for the ultimately international nature of many UK-listed companies does have merit (despite the difficulties in quantifying it) but so does the cap-weighting by exchange listing, so it's clearly not a case of one being right and the other being wrong and a 'misunderstanding' that needs to be 'corrected'....

JustinEvans9964

Hi. Firstly thanks again for all the advice; really is appreciated.  I have been doing some further research, and watched the suggested tubes on Global Multi Asset Funds. The Lars Kroijer vids are really interesting and appeal to both my risk and time investment appetite, so at this stage would probably seem like the investment ticking my boxes. Therefore just a couple more questions:
Given that the average index fund ROI at a medium risk rating (according to Lars) sits at circa 4-5% above inflation, would this be considered a better option to ploughing the money into my current workplace pension? My current WPP is with Aviva and is medium risk rating. Given the tax relief on my contributions would this be a better option for my cash than say a 60/40 VLS or something similar?
Also the other option would be to overpay my mortgage.
I am 56 years old, have an outstanding mortgage of 198k at 2% with 11 years term left on it.
My pension isn't great (one WPP that is currently worth 7k with combined contributions from myself and my employer of circa £4k annually and an older pension from a previous employer that has a transfer value of £75k or just over £3k annual projection at maturity) and (unfortunately) I am expecting to work until full retirement age, so really looking to maximise the disposable income I have to ensure as comfortable a retirement as possible.
Thanks again

dunstonh

Given that the average index fund ROI at a medium risk rating (according to Lars) sits at circa 4-5% above inflation, would this be considered a better option to ploughing the money into my current workplace pension?

I think you would be taking too much of a risk to assume you are going to get 4-5% ABOVE inflation at medium risk.   Medium risk tends to have a long term average of around 5-6% before inflation.

Also, you appear to be mixing up investments and pensions.     A pension is tax wrapper.   You put investments in a tax wrapper.  Its a bit like car and petrol.     You are asking if it's better to have a car or petrol.

 Given the tax relief on my contributions would this be a better option for my cash than say a 60/40 VLS or something similar?

What stops you holding VLS (if you really want that option) in a pension? (it doesnt have to be the Aviva pension).  Remembert that VLS is not an index tracker.  It is a multi-asset fund with management decisions that has underlying tracker funds as part of its holdings.

Also the other option would be to overpay my mortgage.
I am 56 years old, have an outstanding mortgage of 198k at 2% with 11 years term left on it.

So, you save 2% by paying off out of taxed money and miss out on the 5-6% p.a. and tax relief.  

JustinEvans9964

Yea the pension over mortgage makes sense now, thanks. In terms of my WPP I assumed that because my company enrolled me into the Aviva one they use for everybody in the business, then that is the one I have to have? Honestly didn't realise that I could change it. 

dunstonh

JustinEvans9964 said:

Yea the pension over mortgage makes sense now, thanks. In terms of my WPP I assumed that because my company enrolled me into the Aviva one they use for everybody in the business, then that is the one I have to have? Honestly didn't realise that I could change it. 

You cant change it but you can have multiple pensions.