Everything in Vanguard!

Type_45

Is now a riskier time than ever to have all of my savings in Vanguard Life Strategy? (100% ACC)

Surely, the stock market will take a tumble before long in this climate... And is having all my savings on one platform (iWeb) and in one product (VLS100) compounding risk? (I'm below the £85k protected limit, but not massively below it).


I do have a house which is 75% paid off, so my net worth isn't entirely in equities.

That being said, I have no plans for the savings and no intention of ever touching them. If they massively dipped I'd be able to tolerate it and wait for the climb back and wouldn't freak out. I'd try to buy the dip. I'm in it for the long haul.

Billycock

Is now a riskier time than ever to have all of my savings in Vanguard Life Strategy? (100% ACC)

Surely, the stock market will take a tumble before long in this climate..

No one knows what will happen, so no one can say. If you're feeling uneasy maybe you can switch to a LS multi asset fund.

ColdIron

Type_45 said:

And is having all my savings on one platform (iWeb) and in one product (VLS100) compounding risk? (I'm below the £85k protected limit, but not massively below it).

You asked this before and got some pretty good answers

https://forums.moneysavingexpert.com/discussion/6250984/how-are-s-s-isas-protected-by-fscs

eskbanker

Type_45 said:

Is now a riskier time than ever to have all of my savings in Vanguard Life Strategy? (100% ACC)

It's always risky not to have some savings in readily accessible cash form....

Dh6

If you’re feeling that way I’d guess you should re-evaluate your appetite for risk. 

Type_45

Few seem to acknowledge that we are in totally unchartered waters here.

Some people predicting low inflation for the foreseeable, others hyperinflation. And what affect this may have on the global stock market.


I know very little and my opinion shouldn't be remotely listened to, but my hunch is that asset prices will keep going up. I think that printed money ends up in the stock market. And that stock markets can only trend upwards as the alternative to that is the end of civilisation - but that's looking likely too.

Nebulous2

We're always in uncharted waters. Nothing is ever the same as it was last time. 

The big government players have pumped more money than ever in to the economy to keep things moving. A lot of that money has found its way to individuals and into their bank accounts. Long ago people used to refer to those who had avoided service and made money as 'having had a good war.' Many of the big family businesses of today were founded on wartime profits. Many of us have likewise had 'a good pandemic.'  Somewhere around £225 billion has been saved in the past year. 


The biggest unknown I know of is how much of that windfall will be spent. From memory the bank of England was forecasting 5% of it. Some economists think that is far too conservative and are forecasting 30% of it. What if they are both wrong and it is nearer 70%? All of that money, chasing goods and holidays that are still in short supply, has the potential to really ramp up inflation. 

Then there are all the other unknowns that we don't know of. What if we get hit with an even worse pandemic? What if war breaks out between China and the US of A? What if a small biotech company unlocks a cure for cancer and renders much of the pharmaceutical industry obsolete? 


You get the picture. In the famous words of Dirty Harry:- "You've got to ask yourself one question: 'do I feel lucky?"

Albermarle

The biggest unknown I know of is how much of that windfall will be spent. From memory the bank of England was forecasting 5% of it. Some economists think that is far too conservative and are forecasting 30% of it. What if they are both wrong and it is nearer 70%?

5% seems ridiculously low . On the other hand the majority will have gone to people who did not really need it in the first place so are unlikely to suddenly splurge it all. So 30 to 50% over a couple of years seems a reasonable guess.

Certainly some areas are benefitting it already , such as house prices and refurbishment of houses and gardens . In this area , raw materials and labour costs and availability are already a significant problem.

Prism

Type_45 said:

That being said, I have no plans for the savings and no intention of ever touching them. If they massively dipped I'd be able to tolerate it and wait for the climb back and wouldn't freak out. I'd try to buy the dip. I'm in it for the long haul.

If that is the case then you should be hoping for a big equity crash yes?

bostonerimus

OP I think you might be confusing the risk of having everything on a single platform and the risk inherent in your chosen investments.

1) If you are on a major UK platform like Vanguard, H&L, etc don't worry about having everything in that single platform. They are regulated.
2) Your investments can lose money as the values of stocks, bonds and inflation varies. So you have to have investments that are appropriate for your circumstances and allow you to sleep at night. So you need some cash, bonds and equities to go with the equity in your house.

There will be a big equity crash one day, the difficulty is we don't know when that day will be. This is why you need to hold assets that allow you to survive crashes and take advantage of any recovery.

Swipe

If you think it's going to crash you should be keeping at least 30% in cash ready to take advantage of any correction.