Reviewing My S&Ss Account

JPin

Hi All,

In 2022 I setup a S&Ss ISA account with Vanguard - namely a LifeStrategy 100% Equity Fund - Accumulation. 

I pay in £200 per month, the overall value is £2500 and the personal rate of return is +6.35%.

I never fully understood what any of this means or even if it's the best option for me. Can anyone help and advise?

Thanks in advance. 

Frequentlyhere

How do you expect us to tell you whether what you're doing is personally best for you if you've told us literally nothing at all about your personal circumstances? 

e.g.  Are you young/old? How long a term investment do you want, and for what purpose? What's your risk tolerance? What are your hopes/expectations for this investment?  etc etc.

MX5huggy

It’s a perfectly reasonable thing to have done. You could do weeks of research and end up with exactly the same outcome. Keep putting your £200 in maybe increase it and over the next 10 to 20 years you should have a good outcome. 

Sg28

A stock and shares ISA with that fund is a perfectly good and sensible choice for a long term investment. 

Depending on your circumstances and aims it might be better to us a SIPP instead if you dont mind locking that money away until 57. 

ColdIron

JPin said:

Hi All,

In 2022 I setup a S&Ss ISA account with Vanguard - namely a LifeStrategy 100% Equity Fund - Accumulation. 

I pay in £200 per month, the overall value is £2500 and the personal rate of return is +6.35%.

I never fully understood what any of this means or even if it's the best option for me. Can anyone help and advise?

Thanks in advance. 

VLS100 at Vanguard would be a good strategy for some but not for others however we know nothing of you, your circumstances or objectives

What is it that you don't understand? The Vanguard Investor platform? The VLS100 fund that you selected? Something else?

Eyeful

1. One of the first rules is " never put your money into something you do not understand". So how come to ended up with putting money into that VLS fund? 

2. You are not clear in stating what you do not understand the meaning off and no one here knows what your personal circumstances or aims are, you are unlikely to get any helpful suggestions.

3. Maybe these video's by James Shack  (starting with the Vanguard  LifeStrategy  Fund) may be of some help to you.

https://www.youtube.com/watch?v=lGQ9KyQq8Jw

Eyeful

Does this help for meaning of Personal Rate of Return?

https://www.investopedia.com/terms/r/rateofreturn.asp

boingy

JPin said:

Hi All,

In 2022 I setup a S&Ss ISA account with Vanguard - namely a LifeStrategy 100% Equity Fund - Accumulation. 

I pay in £200 per month, the overall value is £2500 and the personal rate of return is +6.35%.

I never fully understood what any of this means or even if it's the best option for me. Can anyone help and advise?

Thanks in advance. 

I can't possibly tell you whether that's the best option for you but, in my view, you've made a pretty good start with your choice of fund and your investment level. The important thing is to keep paying into it and just let it grow over the years. Investing doesn't have to be complicated. If you can put in more money then do so but also balance it with things like pension and mortgage.

JPin

Thanks to everyone who responded.

Apologies for the vagueness of my original post, from the replies I have received I have done some research on what I have and I continue to keep this going. 

I am 39 and this is something I setup to give me a good return in future life - hopefully around mid-50s. As I was late to investing I opted for the high risk strategy of 100% equity, however, as the years go on I will hope to dial this down to include bonds, I assume this is possible and if so are there any ramifications to my overall portfolio? 

InvesterJones

JPin said:

 I assume this is possible and if so are there any ramifications to my overall portfolio? 

Yes and yes - the ramifications are that you'll have more bonds and fewer equities That means the performance characteristics will change - on average bonds would lower volatility and overall return, making them more suitable for short-medium term timescales, but that's not guaranteed - bonds are a different type of asset and react to different things than equities. Bond funds add another layer of complexity as now it's the price of the bond (it's worth to someone else) that's usually key rather than just the underlying yield. But as you're researching you'll be able to research this in plenty of time

JPin

InvesterJones said:

JPin said:

 I assume this is possible and if so are there any ramifications to my overall portfolio? 

Yes and yes - the ramifications are that you'll have more bonds and fewer equities That means the performance characteristics will change - on average bonds would lower volatility and overall return, making them more suitable for short-medium term timescales, but that's not guaranteed - bonds are a different type of asset and react to different things than equities. Bond funds add another layer of complexity as now it's the price of the bond (it's worth to someone else) that's usually key rather than just the underlying yield. But as you're researching you'll be able to research this in plenty of time

Bonds are a little more stable and better suited to portfolios closer to retirement etc?