Choosing a vanguard lifestrategy plan

maz_hartley

At 48 just finally got round to sorting my savings which are sat in a basic savings account. I have set a side some for and emergency and rainy day fund and intend to top up my small work pension with a little so I have a slightly bigger portion to invest in a vanguard lifestrategy fund that I will be keeping locked in for 20+ years until I retire. I’m prepared to take a slight risk so possibly go for the 80% isa. But I’m concerned that having left it late in life to sort my finances would I be wise to be more cautious and go for a lower % isa. Any advice. Alternative suggestions  appreciated.

msallen

For a 20+ year timeframe 80% equities is the minimum I would go for personally, but no-one here knows your risk tolerance.

Why are you only topping up your "small work pension with a little" if this investment is intended for retirement? At a minimum there's the tax relief, plus possibly more employer contributions and/or salary sacrifice.

[Deleted User]

Hello, Vanguard life strategy is ideal for a 20 year + investment. The higher the enquiry content, the higher the return over that period. If I were in your position, I would go for Vls 80 or more likely Vls 100 and leave alone for growth. NB with funds it is possible to lose large amounts of invested money. Regards

dunstonh

. I’m prepared to take a slight risk so possibly go for the 80% isa

VLS80 is not a slight risk.  It would be at the moderate to high end of the scale.

That is not to say it is unsuitable, especially given the timescale but it cannot be referred to as slight risk.

Why are you using the ISA tax wrapper and not the pension tax wrapper?  It seems likely, based on the very limited info we have, that pension would be more beneficial than ISA.

Albermarle

If you are saving for retirement , pension beats ISA in nearly all circumstances due to the tax benefit,
Most likely you will be better off putting more in your workplace pension ( or alternative pension )

Probably there will be fund in your pension that is similar VLS80 ( which is just another multi asset fund amongst many) 
What is you pension invested in now ?

maz_hartley

Albermarle said:

If you are saving for retirement , pension beats ISA in nearly all circumstances due to the tax benefit,
Most likely you will be better off putting more in your workplace pension ( or alternative pension )

Probably there will be fund in your pension that is similar VLS80 ( which is just another multi asset fund amongst many) 
What is you pension invested in now ?

Pension is invested in a Nest scheme which seems to be a very basic pension.

JohnWinder

I'll agree with the other comments, and add that you have about 20 years of investing this money if you plan to cash it all in when you retire in about 20 years. If you plan to continue this investment as a way of funding your retirement for a further 20 years, then you 40 years ahead of you in this fund. That makes a high equity proportion even more justified.

dunstonh

maz_hartley said:

Albermarle said:

If you are saving for retirement , pension beats ISA in nearly all circumstances due to the tax benefit,
Most likely you will be better off putting more in your workplace pension ( or alternative pension )

Probably there will be fund in your pension that is similar VLS80 ( which is just another multi asset fund amongst many) 
What is you pension invested in now ?

Pension is invested in a Nest scheme which seems to be a very basic pension.

So, use that or use a pension wrapper elsewhere if you dont want Nest.  You can hold VLS80 in a pension just as you can an ISA.    THe pension wrapper, based on the limited info you have given, will be financially better for you than the ISA wrapper.

Albermarle

Vanguard offer a SIPP/pension themselves where you can hold the VLS 80 .
OR other platforms offer SIPPs with a full range of investments available , including VLS80 and other similar multi asset funds like HSBC global strategy Dynamic or Blackrock MYmap 6 .

maz_hartley

Thanks. But how does this work if opened a SIPP and wanted to hold a VLS80. I take it if I were to open a SIPP then I’d have the option to use VLS80 for my investments?

AlanP_2

Assuming your SIPP provider offers the VLS range then yes. Most of the common retail platforms will so shouldn't be an issue.

Vanguard themselves offer VLS direct to consumers with a SIPP warpper if required at a good price point. They are very limited on what the SIPP offers in terms of withdrawal when retired at the moment but that may not be a concern for you depending on how long until you reach that point.