We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Consolidating Pensions - Global Index Tracker


Comments
-
Vanguard FTSE Global All Cap Index is probably what you want. But remember stock markets can crash.
1 -
Yeah I wanted to avoid one that was all shares and more of a mix of bonds and shares as I read those where considered a bit safer.
0 -
You say "low risk for the next 25-30 years". Over such relatively long time you should be looking to take some risk so your investments have more chance to grow. Choice is often the enemy of the novice and they get paralyzed and worry that they are missing something, but the truth is there is a vast amount of duplication in investment funds. So I would concentrate on the Vanguard Life Strategy series of funds as these give you an all in one investment portfolio containing several tracker funds. If you are investing over 30 years you probably want something with a majority of equities like VLS60 or 80. Take some time to understand the funds contained within the VLS series and how they work.“So we beat on, boats against the current, borne back ceaselessly into the past.”1
-
I was hoping someone here could help me select one. Im looking for something low risk for the next 25-30 years
Although nobody can know the future, but all historical data would say that holding low risk funds instead of high risk ones over such a long time period, will mean you will miss out on significant growth in your investments. Risk in this context ( using mainstream investments) really means volatility, rather than risk of total loss. In other words higher risk investments will bounce up and down more sharply in the short and medium term. If you do not have the stomach for this, then you can go more medium risk.
There are many funds other than Vanguard, but as you are currently looking there, then Life Strategy 60 is medium risk and the 80 is medium/high.
You could also look at the 'target retirement funds ' These start off higher risk and then change as you get nearer your retirement date.
0 -
Yeah I wanted to avoid one that was all shares and more of a mix of bonds and shares as I read those where considered a bit safer.90% of the time, that statement would be correct. 2022 has been in the 10% of the time you don't want to be in them. Although we are getting closer to the point where they become attractive again.
However, the lower risk usually means lower long-term returns and less short term volatility.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
A_T said:Vanguard FTSE Global All Cap Index is probably what you want. But remember stock markets can crash.0
-
My singular consensus (if that's possible) would be to have a portfolio that meets your financial strategy. As your strategy develops there might be a need to change allocation, but I would let your personal goals drive that not some macro economic numerology and guess work. As an example my retirement income is covered by a DB pension and rental income and my portfolio is 85% equities for long term growth. So through out this downturn I have not done anything. Even through a recession I will not touch my investments as they are invested for a 20 or even 30 year time horizon.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
-
LAPORTS1 said:A_T said:Vanguard FTSE Global All Cap Index is probably what you want. But remember stock markets can crash.
The markets have known a recession is likely for some time, and it is already 'priced in ' To some extent the markets will already be looking for signs when the recession might be over .
A complicating factor is how widespread a recession might be . A UK one on its own would have minimal impact on global markets, whilst a US one , or maybe a Chinese property implosion would have more impact.2 -
LAPORTS1 said:A_T said:Vanguard FTSE Global All Cap Index is probably what you want. But remember stock markets can crash.
Assuming the OP is investing in a pension that will not be touched 25 years then anything other than 100% equities for the first years is likely to miss out on growth. The risk and volatility can be reduced nearer to the time when the pension will be taken.
1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.4K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.4K Work, Benefits & Business
- 597.9K Mortgages, Homes & Bills
- 176.6K Life & Family
- 256.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards