How much to invest in index funds?

adindas

Linton said:

adindas said:

eskbanker said:

adindas said:

Exodi said:
The reason I suggested doing more research is because VLS100 is, in my opinion, one of the worse funds on Vanguard (and I think only included to complete the VLS20, 40, 60, 80 collection). It also features a large home bias, which I'm personally not a fan of.

In my personal view, VWRL or the FTSE Global All Cap Index are both superior funds.

The above is my personal views and I'd always recommend you do your own research.

If you want to know which want perform better, all you need to do is to plot all of this fund into a long time horizon say over a few decades back from now and see what you get. All you need to do is to plot VLS100 and VLS 20 to see the most extreme cases and see what you get. It is general truth that equity always outperform bond in the long run, so the more bond percentage you have in your portfolio the less return you will get in the long run. For people who stated VLS 20 is better than VLS100 in term of return please free plot both of them over a few decades and see what you get..

Another confirmation bias such as the long belief about excessive diversification, the more diversification the higher return you will get, which are against the view of many proven billionaires investors views. Excessive diversification and/bond might not be suitable for someone but it might not be suitable for other people. It will depend on your goal and personal circumstances.

It's completely pointless to divert yet another thread with your favourite strawman arguments - NOBODY mentioned BONDSds, and if you're recommending that OP steers clear of the index trackers they've decided to use then what specifically are you advocating instead?

What about this is VLS20, VLS40, 60,80 no bonds, noone ??

(Re)read the thread - those funds were mentioned in the context of VLS100 being part of the VLS set.  No-one has has said anything about the OP investing in them.

If a thread is created in a discussion forum is it specifically for the OP ?. I understand this is a discussion forum and not Q&A.

eskbanker

adindas said:

Linton said:

adindas said:

eskbanker said:

adindas said:

Exodi said:
The reason I suggested doing more research is because VLS100 is, in my opinion, one of the worse funds on Vanguard (and I think only included to complete the VLS20, 40, 60, 80 collection). It also features a large home bias, which I'm personally not a fan of.

In my personal view, VWRL or the FTSE Global All Cap Index are both superior funds.

The above is my personal views and I'd always recommend you do your own research.

If you want to know which want perform better, all you need to do is to plot all of this fund into a long time horizon say over a few decades back from now and see what you get. All you need to do is to plot VLS100 and VLS 20 to see the most extreme cases and see what you get. It is general truth that equity always outperform bond in the long run, so the more bond percentage you have in your portfolio the less return you will get in the long run. For people who stated VLS 20 is better than VLS100 in term of return please free plot both of them over a few decades and see what you get..

Another confirmation bias such as the long belief about excessive diversification, the more diversification the higher return you will get, which are against the view of many proven billionaires investors views. Excessive diversification and/bond might not be suitable for someone but it might not be suitable for other people. It will depend on your goal and personal circumstances.

It's completely pointless to divert yet another thread with your favourite strawman arguments - NOBODY mentioned BONDSds, and if you're recommending that OP steers clear of the index trackers they've decided to use then what specifically are you advocating instead?

What about this is VLS20, VLS40, 60,80 no bonds, noone ??

(Re)read the thread - those funds were mentioned in the context of VLS100 being part of the VLS set.  No-one has has said anything about the OP investing in them.

If a thread is created in a discussion forum is it specifically for the OP ?. I understand this is a discussion forum and not Q&A.

Of course it's a discussion forum but that doesn't mean that every thread is suitable for repeating yet again all that tedious stuff about 'proven billionaire investors', or to derail onto bonds, when the topic of this one is equity index trackers....

dunstonh

adindas said:

Linton said:

adindas said:

eskbanker said:

adindas said:

Exodi said:
The reason I suggested doing more research is because VLS100 is, in my opinion, one of the worse funds on Vanguard (and I think only included to complete the VLS20, 40, 60, 80 collection). It also features a large home bias, which I'm personally not a fan of.

In my personal view, VWRL or the FTSE Global All Cap Index are both superior funds.

The above is my personal views and I'd always recommend you do your own research.

If you want to know which want perform better, all you need to do is to plot all of this fund into a long time horizon say over a few decades back from now and see what you get. All you need to do is to plot VLS100 and VLS 20 to see the most extreme cases and see what you get. It is general truth that equity always outperform bond in the long run, so the more bond percentage you have in your portfolio the less return you will get in the long run. For people who stated VLS 20 is better than VLS100 in term of return please free plot both of them over a few decades and see what you get..

Another confirmation bias such as the long belief about excessive diversification, the more diversification the higher return you will get, which are against the view of many proven billionaires investors views. Excessive diversification and/bond might not be suitable for someone but it might not be suitable for other people. It will depend on your goal and personal circumstances.

It's completely pointless to divert yet another thread with your favourite strawman arguments - NOBODY mentioned BONDSds, and if you're recommending that OP steers clear of the index trackers they've decided to use then what specifically are you advocating instead?

What about this is VLS20, VLS40, 60,80 no bonds, noone ??

(Re)read the thread - those funds were mentioned in the context of VLS100 being part of the VLS set.  No-one has has said anything about the OP investing in them.

If a thread is created in a discussion forum is it specifically for the OP ?. I understand this is a discussion forum and not Q&A.

But you have misread a post that correctly stated that VLS100 is only there to complete the collection (it being the odd man out in the range) as a post suggesting that the others should be used.   It didn't say that.

Nardy

Exodi said:It also features a large home bias, which I'm personally not a fan of.

As someone with investments in VL80 and VLS100, could you please explain what you mean by "home bias" and at what point do you consider it to be large?

dunstonh

Nardy said:

Exodi said:It also features a large home bias, which I'm personally not a fan of.

As someone with investments in VL80 and VLS100, could you please explain what you mean by "home bias" and at what point do you consider it to be large?

The VLS range of funds are managed funds that use underlying passives.   They decide how much to allocate to different countries and which areas to include and leave out.      Home bias is where you have an increased ratio allocated to the home country of the investor.   In this case, the UK is about 4% of the global economy.   So, any fund that allocates more than 4% is creating a home bias.

There can be good reasons for it (such as currency fluctuations).  However, some take it quite high.  Vanguard is one of those.  Not everyone agrees with how high they take home bias.

Nardy

dunstonh said:      Home bias is where you have an increased ratio allocated to the home country of the investor.   In this case, the UK is about 4% of the global economy.   So, any fund that allocates more than 4% is creating a home bias.

There can be good reasons for it (such as currency fluctuations).  However, some take it quite high.  Vanguard is one of those.  Not everyone agrees with how high they take home bias.

Thanks for that, you've given me something to think about.

Savingforahouse123

Hi I’ve had some time to think so I’m revisiting this. 

I’m thinking: 

£4k into my LISA each tax year to get the £1k Government bonus (it’s a S&S LISA with Moneybox)

Then with the remainder of my funds I want to invest I’ll put it in any Vanguard life strategy 100 index funds (ISA)

Ultimately I think a lot of it comes down to my goals and what I’m investing for. For so long my goal was to save for a house deposit so I stacked that money in east access savings accounts. Now that I’ve got my house with a low mortgage, investing seems the obvious answer but my question I’m asking myself is “investing in what”? Ie my pension or something else. My financial goals aren’t clear and changes quite often now… sometimes I think it’s to retire early but then maybe in the future I might need money to upsize my house or have a wedding so I think I want my investing strategy to be fairly flexible and adaptable in case I need money in the fairly short or medium term for an unforeseen event. 

What do you think? 

Altior

At your age, once you are maximising any employer benefit, the upside to ploughing it into a sipp is minimal. Especially if you have financial discipline, which it appears you do. The caveat is if you can use the SalSac option, which tips the scales to contributing more via the employer scheme, if that's an option. 

You can simply invest in the same fund in a S&S ISA instead of sipp, and when you get closer to being able to access pensions, you can begin rotating it into a sipp (in the same fund). Subject to contribution limitations, but this can be done over a number of years. Say, after you are 45 or so. 

Savingforahouse123

Savingforahouse123 said:

Hi I’ve had some time to think so I’m revisiting this. 

I’m thinking: 

£4k into my LISA each tax year to get the £1k Government bonus (it’s a S&S LISA with Moneybox)

Then with the remainder of my funds I want to invest I’ll put it in any Vanguard life strategy 100 index funds (ISA)

Ultimately I think a lot of it comes down to my goals and what I’m investing for. For so long my goal was to save for a house deposit so I stacked that money in east access savings accounts. Now that I’ve got my house with a low mortgage, investing seems the obvious answer but my question I’m asking myself is “investing in what”? Ie my pension or something else. My financial goals aren’t clear and changes quite often now… sometimes I think it’s to retire early but then maybe in the future I might need money to upsize my house or have a wedding so I think I want my investing strategy to be fairly flexible and adaptable in case I need money in the fairly short or medium term for an unforeseen event. 

What do you think? 

Edit: I’m going to pick a Hargreaves landsdown S&S LISA and on their platform I will invest in a Vanguard FTSE Global All Cap Index Fund Accumulation. I’ll put in £4000 each tax year. Anything else I invest will go in my vanguard life strategy 100 index fund 

Kaizen917

Does HL work out well fee-wise? I feel like Dodl (i.e. the AJ bell subsidiary) is pretty competitive for investment LISA on fees but maybe things changed lately.