Consolidating Pensions - Global Index Tracker

NedS

Albermarle said:

LAPORTS1 said:

 A_T said:

Vanguard FTSE Global All Cap Index is probably what you want. But remember stock markets can crash.

Considering we're entering a recession, would the general consensus be to move funds out of the Vanguard FTSE Global All Cap Index to Lifestyle Strategy 80/20 or 60/40?

The link between economic conditions and stock market performance includes quite a large delay factor.
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.

I think the process will be a two stage process. We have seen stage one where we have seen a re-rating from market exuberance to that where the strong possibility of recession (a less growth orientated period) has been priced in. Stage two will be when earnings actually start to fall (or fail to meet expectations) once the recession actually starts to bite and affect the bottom line.  That may take another 12-18 months before we see the full fallout of an earnings re-rating.

In the meantime, I'd just keep buying the market by drip feeding in monthly pension contributions in the knowledge that prices are likely cheaper this year than they were last year.

cfw1994

seanyshow said:

Hi guys, I'm new to understanding the world of pensions. I've been doing some research which suggested using a global index tracker fund via the likes of vanguard with low fees as good advice for a novice to see a return on investment many years down the line. I've been having a nosey through th vanguard website and to be honest i'm a little overwhelmed at the amount of funds which I can transfer my pensions over to. I was hoping someone here could help me select one. Im looking for something low risk for the next 25-30 years, low maintanence (cause I've no idea what i'm doing) Is the global index tracker good advice? If so, are there any good policies someone could recommend at Vanguard?

Any advice would be greatly appreciated.

Trackers are good, and Vanguard is a decent low cost method to invest.

Nobody here can give you ‘advice’ - that is a regulated service, for which a financial advisor will happily take payments to give you 😉
Many here manage things themselves.  If you do go for advice, make sure it is an Independant  Financial Advisor.

Have a watch of the videos at https://kroijer.com, which will likely reinforce your thinking.

I’d personally be happy to put into VLS80 when you have 2-3+ decades to invest.  VLS100 has a UK-bias, which I would personally avoid.

Key thing is to not prevaricate too long: get it started and drip feed in!    

A lot of people put this kind of thing off, and before you know it, another year of no money being invested passes.   Time in the market is important, not ‘timing the market’ - enjoy the power of compounding 💪
Markets will go up, down, crash and rise: just remember when they crash, you are investing cheaply for the next X months before they rise again 👍

You don’t mention work: is there a work scheme you can add more to?  
If the company use ‘salary sacrifice’, that can be more efficient.
Well worth finding more out about that: I know our work scheme invested by default in a somewhat ‘middle of the road’ option, but there were others that could be chosen.

If you don’t work, you can still invest £2,880pa (& have £720 of ‘free’ money added by HMRC!)

MX5huggy

cfw1994 said:

seanyshow said:

Hi guys, I'm new to understanding the world of pensions. I've been doing some research which suggested using a global index tracker fund via the likes of vanguard with low fees as good advice for a novice to see a return on investment many years down the line. I've been having a nosey through th vanguard website and to be honest i'm a little overwhelmed at the amount of funds which I can transfer my pensions over to. I was hoping someone here could help me select one. Im looking for something low risk for the next 25-30 years, low maintanence (cause I've no idea what i'm doing) Is the global index tracker good advice? If so, are there any good policies someone could recommend at Vanguard?

Any advice would be greatly appreciated.

I’d personally be happy to put into VLS80 when you have 2-3+ decades to invest.  VLS100 has a UK-bias, which I would personally avoid.

VLS80 has the same UK bias as 100 and all the LS funds. If you want to avoid that you’ll have to look elsewhere.