Alternative to Vanguard LS40 inc. in a GIA?

BPL

Hi, I have to sell VLS40 Inc. to escape CGT. Any thoughts on alternatives? VLS40 was nice and simple and the income was taxed as dividends unlike funds with more than 60% Bonds.
My current thoughts are;

• Wait 30 days and re-buy VLS40
• VLS60 inc. then maybe switch back to VLS40?
• V FTSE Global All-cap 40% Global Bonds 60% (income taxable as savings) 20% tax payer. Allows bond selling in equity crash
• V FTSE Global All-cap 35% VLS20 65% (income taxable as savings) 20% tax payer. Allows "proxy bond" VLS20 selling in equity crash

I'm a passive investor....so far
This is for years 3-5 cash flow ladder rung, annual £20k transfer to ISA
Have good DB income, ISA, SIPP, just "retired"

TIA

eskbanker

Are you constrained to Vanguard products only?  There are plenty of other multi-asset options available if you're looking for something similar.

Or you could switch from VLS40 inc to acc, even if just temporarily before reversing it after 30 days?

Having said that, if this is for money to be accessed within 3-5 years, then disinvesting completely is worth considering, unless your other assets can be redeployed safely and quickly....

BPL

Thanks for your thoughts. 

I did look at MYMAP4 and fidelity multi asset but charges and past performance not as good as V. Others have suggested active CGT and PAT. 

Will a switch to acc make CGT reporting messy. Equalisation payments which i don't understand fully. Maybe ok if im not in dividend payment time frame.

Im ok ish  3/5 years i wouldn't want to have 5 years cash sitting around depreciating there must be something better.....

Bonds would mean savings tax and ?poor performance? or correlated with equities hence a bond equity split.

all suggestions welcome!

Audaxer

BPL said:

• Wait 30 days and re-buy VLS40
• 
  

If you are a passive investor and were happy with VLS40, why not just do as per your bullet point above?

BPL

Audaxer said:

BPL said:

• Wait 30 days and re-buy VLS40
• 
  

If you are a passive investor and were happy with VLS40, why not just do as per your bullet point above?

I was a bit concerned about being able to disinvest as i can't take just the bonds or just the equites out of LS40. 

Thrugelmir

BPL said:

Audaxer said:

BPL said:

• Wait 30 days and re-buy VLS40
• 
  

If you are a passive investor and were happy with VLS40, why not just do as per your bullet point above?

I was a bit concerned about being able to disinvest as i can't take just the bonds or just the equites out of LS40. 

Why would you? If the fund doesn't meet your objectives reinvest progressively into something that does. 

BPL

Which one does though? 

jamesd

If you want to stick to Vanguard products a 50:50 mixture of VLS20 and VLS60 appears to offer 40% equities and I expect that the composition of them is close enough not to matter.

BPL

Thrugelmir said:

BPL said:

Audaxer said:

BPL said:

• Wait 30 days and re-buy VLS40
• 
  

If you are a passive investor and were happy with VLS40, why not just do as per your bullet point above?

I was a bit concerned about being able to disinvest as i can't take just the bonds or just the equites out of LS40. 

Why would you? If the fund doesn't meet your objectives reinvest progressively into something that does. 

I will need to access cash and in an equity or bond downturn i will sell the higher price asset. This should help with rebalancing.

Audaxer

BPL said:

Thrugelmir said:

BPL said:

Audaxer said:

BPL said:

• Wait 30 days and re-buy VLS40
• 
  

If you are a passive investor and were happy with VLS40, why not just do as per your bullet point above?

I was a bit concerned about being able to disinvest as i can't take just the bonds or just the equites out of LS40. 

Why would you? If the fund doesn't meet your objectives reinvest progressively into something that does. 

I will need to access cash and in an equity or bond downturn i will sell the higher price asset. This should help with rebalancing.

Although bonds are not likely to fall as much as equity, they could still fall in a 3 to 5 year period, so probably best keeping it all as cash if you intend to drawdown it all in the 3 to 5 year period. If you are concerned about keeping so much cash, you could mitigate by only reinvesting 50% in the VLS40 or another preferred option, and keeping the other 50% in cash.

BPL

Thanks for your reply. Yes i have cash but this is the rung above that so maybe it shouldn't be in cash. The difficulty is finding an investment to fulfill this role. So if bonds are falling doesn't the but the dip apply. Btw i don't believe in timing the market but it's difficult not to in decumulation phase after FIRE.