Alternative to vanguard life strategy - multi asset fund

RobHT

There are a couple of things that no one considered.
I'm not sure what is your real objective, because people struggle to explain it, yes me too.

One thing is common to everyone, if you trust or if you have ONLY the knowledge of reading a simple pie cart, then the VLS80 is the best option for you, assuming you are young and you wanna go long (15y and more).
Don't get me wrong though, in 15y, there's can be a drop of 30% too, so, it is what it is.

The biggest difference is if you trade or if you invest in exponential growth, in that case, VLS80 helps to re-balance and you don't need to think to another fund, another fund would be only useful to re-balance your portfolio, as I do it, nothing more.

VLS80 is already diversified, but it has an heavy portion on UK due to taxation, if you don't like it, well then that's another valid reason to split the investment in another fund, but don't lose the objective.

Otherwise, also investing in a dividend fund is helpful to pull out cash if needed, but are you sure that it's not better a guaranteed saving account?

In any case, investing now in a dividend fund is a bit silly, inflation is way above and the companies earnings not necessarily will stay the same or go up, so, they may end up reducing the dividends or even stop it in one quarter.

Albermarle

Don't get me wrong though, in 15y, there's can be a drop of 30% too, so, it is what it is.

I do not think that has ever happened, but happy to be proved wrong, if you supply the time period involved.  According to this graph the chance of any loss after 15 years is approx zero.

Long-term investing: Increasing your chances of positive returns (nutmeg.com)

JohnWinder

Yes, nice charts of global stocks over 50 years.

According to this graph the chance of any loss after 15 years is approx zero

I think I'd say '...WAS approx zero'. That's a chart of what happened, not what will happen or could happen, and I suppose it's not inflation adjusted.

I'm in more than two minds about how safe stocks are over a long period; not to say they're a bad bet.

Albermarle

JohnWinder said:

Yes, nice charts of global stocks over 50 years.

According to this graph the chance of any loss after 15 years is approx zero

I think I'd say '...WAS approx zero'. That's a chart of what happened, not what will happen or could happen, and I suppose it's not inflation adjusted.

I'm in more than two minds about how safe stocks are over a long period; not to say they're a bad bet.

I think I'd say '...WAS approx zero'
Yes better to say it that way.

I'm in more than two minds about how safe stocks are over a long period; not to say they're a bad bet.
Agree with this, but the poster said they might drop 30% over 15 years. In theory yes it is possible,  but the chances must be small enough to discount the possibility in any sensible planning for the future.