Switching between Vanguard's Lifestrategy funds

Albermarle

GazzaBloom said:

Gazelle1985 said:

Thanks everyone. I'm looking to move about £2-£3k. I'm in my mid 30s, and planning on investing for 5-10 years at least so I thought I could move to a slightly more risky fund with the hope that the returns would be slightly higher. I'm guess I'm just wondering if it actually matters when I move it, as both funds are up and down at the same time? Of course there's always the risk that I would sell when it's in a dip and buy at a higher price. 

If were in my mid-30s, and had a desire to hold a LifeStrategy fund I would be in LifeStrategy 100, but I appreciate that may not be for everyone.

LS100 might not be everybody as you say, but someone mid 30's should for sure not be in a cautious fund like VLS20 .

tebbins

LS20 is unlikely to return much more than cash savings over the foreseeable future. IMHO for a 30 something with a minimum 5 year investing horizon I personally think that's so conservative it's basically pointless. LS60 is a good middle ground for retirees with no defined benefit pension other than the state pension. LS80 isn't that much more volatile that 60 - compare how they did in the COVID crash, LS80 only lost a few more % at the dip compared to 60 - just something to consider.
Unfortunately investing isn't a simple "do this" task, it's more like shopping for the perfect fridge, car or house. There's no one right answer. You just have to do what you're comfortable with and stick with it unless your circumstances change materially.

Audaxer

As the OP is in his/her late 30s and say they want to invest for at least 5-10 years, that suggests it may not necessarily be funds for retirement. If it's in an S&S ISA and they may want/need access to the money before retirement, I don't see any problem keeping most of it in the more cautious VLS20. They may have their pension provision already covered.

enthusiasticsaver

Presumably there was a reason you went for the fairly cautious VLS20 initially? What has changed? I guess I am not really sure why you want some of your money in one risk group and some in another? If you do that it will need to be sold then repurchased as they are two separate funds. No point in trying to time it. 

InvesterJones

Gazelle1985 said:

Thanks everyone. I'm looking to move about £2-£3k. I'm in my mid 30s, and planning on investing for 5-10 years at least so I thought I could move to a slightly more risky fund with the hope that the returns would be slightly higher. I'm guess I'm just wondering if it actually matters when I move it, as both funds are up and down at the same time? Of course there's always the risk that I would sell when it's in a dip and buy at a higher price. 

You'll lose or gain a small amount from being out of the market the day or so that it takes - but it's hard to predict with any accuracy which and since equities are only a portion of the funds there's probably even less volatility. So don't worry about it. Or, if you are worried, do it in two transactions - half your money will be out of the market on each occasion but you now have two occasions so in the unlikely event there's a single spectacular change (which could be for better or for worse) then you'll have two chances of missing it.