Moving to Vanguard LifeStrategy

VinceAshbySmith

So here's my thinking; I've been invested in various active funds for the past 5 years or so, which has done well. However, they've needed some careful adjustments and I've probably over-tinkered with them instead of just riding the bumps out. I'm in my late 30s with a little guy on the way and two older children and a wife who has a full on, stressful job. My thought is to sell all my active funds and gradually buy into a Vanguard Life Strategy fund, I was thinking the 80/20 fund as the overall goal is to grow a pot of cash for the foreseeable so happy to take on the higher risks. The reason is that my time is precious and I know that the small amount of "free" time I have is going to get eaten away with family life, so the time I used to have to research and adjust funds, just isn't going to be there. 

The alternative is that I select index trackers to replace my active funds. I would be interested to hear people's thoughts and if anyone else has done similar 

Sg28

Ill be interested to see some responses to this. I moved most of my funds into index trackers earlier this year. But looking at long term performance im not sure its the right strategy. Ive also been considering moving to vanguard lifestrategy. 

Coincidenctly im the same age and similar circumstances to you. 

I currently have my s&s ISA with HL. So I assume it would be a transfer over to the vanguard platform?

VinceAshbySmith

Sg28 said:

Ill be interested to see some responses to this. I moved most of my funds into index trackers earlier this year. But looking at long term performance im not sure its the right strategy. Ive also been considering moving to vanguard lifestrategy. 

Coincidenctly im the same age and similar circumstances to you. 

I currently have my s&s ISA with HL. So I assume it would be a transfer over to the vanguard platform?

Good to hear that there are other people in my boat, I assumed there would be! Interestingly, whilst doing my research, you can invest in vanguard life strategy funds with HL with the same OCF charges as investing directly with vanguard. So I was thinking of gradually moving my funds and switching to vanguard still using HL over the next few months/years

Sg28

VinceAshbySmith said:

Sg28 said:

Ill be interested to see some responses to this. I moved most of my funds into index trackers earlier this year. But looking at long term performance im not sure its the right strategy. Ive also been considering moving to vanguard lifestrategy. 

Coincidenctly im the same age and similar circumstances to you. 

I currently have my s&s ISA with HL. So I assume it would be a transfer over to the vanguard platform?

Good to hear that there are other people in my boat, I assumed there would be! Interestingly, whilst doing my research, you can invest in vanguard life strategy funds with HL with the same OCF charges as investing directly with vanguard. So I was thinking of gradually moving my funds and switching to vanguard still using HL over the next few months/years

Oh I didnt know that. I do actually have a vanguard ftse tracker through HL but didnt know I could get the lifestrategy funds too. In that case I might just look at selling existing funds and buying that. Or at least switch my regular saver to it for now. 

VinceAshbySmith

Sg28 said:

VinceAshbySmith said:

Sg28 said:

Ill be interested to see some responses to this. I moved most of my funds into index trackers earlier this year. But looking at long term performance im not sure its the right strategy. Ive also been considering moving to vanguard lifestrategy. 

Coincidenctly im the same age and similar circumstances to you. 

I currently have my s&s ISA with HL. So I assume it would be a transfer over to the vanguard platform?

Good to hear that there are other people in my boat, I assumed there would be! Interestingly, whilst doing my research, you can invest in vanguard life strategy funds with HL with the same OCF charges as investing directly with vanguard. So I was thinking of gradually moving my funds and switching to vanguard still using HL over the next few months/years

Oh I didnt know that. I do actually have a vanguard ftse tracker through HL but didnt know I could get the lifestrategy funds too. In that case I might just look at selling existing funds and buying that. Or at least switch my regular saver to it for now. 

Yeah, I was surprised you could get the Life Strategy funds through HL. The only thing to note is that HL does have higher account fees but as I have a share dealing account and active savings with them it makes life easier keeping things all in one place. 

dunstonh

Sg28 said:

VinceAshbySmith said:

Sg28 said:

Ill be interested to see some responses to this. I moved most of my funds into index trackers earlier this year. But looking at long term performance im not sure its the right strategy. Ive also been considering moving to vanguard lifestrategy. 

Coincidenctly im the same age and similar circumstances to you. 

I currently have my s&s ISA with HL. So I assume it would be a transfer over to the vanguard platform?

Good to hear that there are other people in my boat, I assumed there would be! Interestingly, whilst doing my research, you can invest in vanguard life strategy funds with HL with the same OCF charges as investing directly with vanguard. So I was thinking of gradually moving my funds and switching to vanguard still using HL over the next few months/years

Oh I didnt know that. I do actually have a vanguard ftse tracker through HL but didnt know I could get the lifestrategy funds too. In that case I might just look at selling existing funds and buying that. Or at least switch my regular saver to it for now. 

You can buy VLS funds through any whole of market platform.   And, more importantly, you can buy any of the other multi-asset passive funds. Some of which are cheaper and may have an asset model that you prefer.

Linton

Any mainstream platform should have access to the full range of Vanguard funds.  So there is no reason not to look for the cheapest that has the facilities you need.

ColdIron

VinceAshbySmith said:

The alternative is that I select index trackers to replace my active funds. I would be interested to hear people's thoughts and if anyone else has done similar 

Switching from a selection of active funds that you have to manage yourself to a selection of passive funds/index trackers that you have to manage yourself isn't likely to solve your 'my time is precious' problem

Using a single multi-asset fund, such as Vanguard's Lifestrategy (composed of underlying index trackers)  probably would so it makes sense. It also stops you worrying about the individual funds and messing with the allocations

Vanguard is not the only game in town, for example the HSBC Global Strategy range is often mentioned on this board. You might like to look at the following. Their performance will be broadly similar for the equivalent risk level

https://monevator.com/passive-fund-of-funds-the-rivals/

Most of them should be available on any of the mainstream platforms

adindas

There is nothing to prevent people to do all of them. Passive funds, index trackers, and actively managed fund, DIY individual shares, etc. But for the latter it is also to be active to keep your eye on not only for individual shares but also for actively managed fund. To be active could be observing the news, debate among analysts; strategists and / or enhancing personal skills such as fundamental and technical analysis, knowing where to set up the stop loss, etc. But this will only make sense for people who use near zero fees platform.

But since you clearly mention you do not have time for this so it is probably the best things is to stick all to passive funds such as index funds. The goal is invest and forget

I personally does not like bonds after learning carefully from various sources. Also after knowing that most of billionaires proven investors dislike bonds. But this does not mean the wrong choice to choose 80/20 allocation for other people with different goal and risk attitude.

Not an advice, or suggestion just personal opinion. You simply just need to DYOR find out more to make your own decision. The best decision is when the decision come from our own decision and not the result from following the crowd as everyone might have a different circumstances and reasons. Also making mistake you will learn it where it has gone wrong and therefore try to improve it.

JohnWinder

I was thinking the 80/20 fund as the overall goal is to grow a pot of cash for the foreseeable so happy to take on the higher risks.

In your other post today, you wrote:

I would hope to leave this pot to grow for 5-10 years but the wife may have some sway on that!

Hopefully she sways you to 25 years. Do have a look at some historical chart data on asset performance. You'll find that 5-10 years is perfect for losing 25% of your money in inflation adjusted terms with a 80/20 fund of global stocks and government bonds. Try the 2000's decade for a start. Your wife won't thank you for that.

At your young age it would be time well spent to put a couple of years of spare time reading into equippng yourself better for personal investing. You'd then know that you're more likely to get better returns with passive investing, and spend less time (at most 2 hours/year) managing the investments, or at least know the arguments for and against those positions so you can sensibly decide for yourself. Wouldn't have to waste your time on forums like these, so more time for the kids and the band.

Albermarle

Vanguard is not the only game in town, for example the HSBC Global Strategy range is often mentioned on this board. You might like to look at the following. Their performance will be broadly similar for the equivalent risk leve

The HSBC global strategy funds have like for like performed a little better than the Lifestrategy funds in recent times, and they are a little cheaper as well.

For example VLS 80 has lost 4% in the last year against 2% for HSBC GS Dynamic. The latter has also a better 5Y growth figure at 6.45% pa compared to 5.3% for VLS 80. The HSBC fund costs 0.19% rather than 0.22% for VLS.

OP - not sure of your pension situation, but you should also consider adding to that, although it depends on your circumstances/current pension/income etc.