Vanguard noobie.. what now?!

MX5huggy

RacingDriver said:

ranciduk said:

Can someone tell me where you find the option on Vanguard where you can select how you want dividends to pay paid ie reinvested or paid to your nominated account?

i found it ages ago - but now I’m damned if I can find it, I’ve searched everywhere!!

My Accounts > My Profile > Product > Edit > Select Option > Save

That setting is only going to control if dividends are paid into the Cash holdings within the ISA ( or GIA) or paid out to your bank account so you can spend them at Tescos. To decide if your LS60 holding (or anything else invested in) pays out or reinvests you need to buy either the Accumulation or Income version of each fund. If you didn’t know about this you probably bought Accumulation by default. 

ranciduk

MX5huggy said:

RacingDriver said:

ranciduk said:

Can someone tell me where you find the option on Vanguard where you can select how you want dividends to pay paid ie reinvested or paid to your nominated account?

i found it ages ago - but now I’m damned if I can find it, I’ve searched everywhere!!

My Accounts > My Profile > Product > Edit > Select Option > Save

That setting is only going to control if dividends are paid into the Cash holdings within the ISA ( or GIA) or paid out to your bank account so you can spend them at Tescos. To decide if your LS60 holding (or anything else invested in) pays out or reinvests you need to buy either the Accumulation or Income version of each fund. If you didn’t know about this you probably bought Accumulation by default. 

So I’m confused

i did by accumulation by default as I didn’t realise

 but Nevertheless it is letting me select to pay the dividends ‘to my bank account’ via the above option 

so will it still do it? 

MX5huggy

The Accumulation funds are not going to payout any dividends. So it doesn’t matter what that setting is. 

I would leave it as payout to cash within Vanguard it keeps all funds within the ISA. 

RacingDriver

Accumulation units automatically reinvest dividends so they never get paid out.

Income units pay dividends and then within Vanguard you can choose to either keep the dividend as cash within your Vanguard account or have it paid into your bank account.

Billycock

rancid, what funds do you actually hold in your account?
It sounds as if you have passive ETF's as well as LifeStrategy funds you were interested in at the beginning.

ranciduk

Just the lifestrategy 60

its fine I don’t really need the dividends- if they have to be reinvested then that’s the way it is

RacingDriver

ranciduk said:

Just the lifestrategy 60

its fine I don’t really need the dividends- if they have to be reinvested then that’s the way it is

They don't have to be reinvested, Vanguard LifeStrategy 60 comes in both Accumulation and Income varieties.

ranciduk

Yes but all my money is in an accumulation fund

mainly because I clearly didn’t have a clue what I was doing when I set it up!

MX5huggy

You have to have a reason to go for Income units, Acc units keep the dividends invested benefiting from compounding and being in the ISA wrapper.  

grumiofoundation

ranciduk said:

Yes but all my money is in an accumulation fund

mainly because I clearly didn’t have a clue what I was doing when I set it up!

Do you want the dividends to be paid out? If so you can just switch to the income version of the same fund  (as above if you don’t need this probably better to stick with ACC).