Vanguard Lifestrategy - thinking of transferring 50% of ISA to a Building Society ISA account

Murmansk

I've had a significant amount in a Vanguard Lifestrategy ISA for six years and it's currently at about 22% return over that period - which is of course a lot better than would have been earned in a Building Society over that period.

Now that interest rates from Building Societies are as they are, and given that I am 62,  I'm thinking of moving half of my money from Vanguard to a Building Society ISA and I wondered what the Panel think about this plan?

Albermarle

Murmansk said:

I've had a significant amount in a Vanguard Lifestrategy ISA for six years and it's currently at about 22% return over that period - which is of course a lot better than would have been earned in a Building Society over that period.

Now that interest rates from Building Societies are as they are, and given that I am 62,  I'm thinking of moving half of my money from Vanguard to a Building Society ISA and I wondered what the Panel think about this plan?

We are not a panel, just random posters !
Your question is difficult to comment on without more info. Such as;
Do you have any other savings and investments?
What is your pension situation?
Do you have any debts/mortgage?
Are you still working/planning to retire ?etc etc.

dunstonh

I've had a significant amount in a Vanguard Lifestrategy ISA for six years and it's currently at about 22% return over that period - which is of course a lot better than would have been earned in a Building Society over that period.

So, in a poor period for investing you have done well.     

Now that interest rates from Building Societies are as they are, and given that I am 62,  I'm thinking of moving half of my money from Vanguard to a Building Society ISA and I wondered what the Panel think about this plan?

Age 62 has nothing to do with it.   Timescale the money isn't needed is key.
You don't say what investment fund you are in.  So, you are asking us to compare an unknown option against cash.

Generically, cash now looks more attractive as a defensive asset but equities are still king for risk based.

Also, any reason you used ISA when pension is likely to be better?

Murmansk

Thanks for those replies and the questions which my post prompted

I know there's no "Panel" - my use of that word was a bit tongue in cheek

I'm still working and expect a full state pension at 67
I don't plan to retire ever if I can help it!
I'm self employed
I'm in receipt of a Local Government Scheme pension and have been since age 56
I have no debts or mortgage and own my property
The Vanguard Lifestrategy is split 50/50 between 60% and 40% equities funds
I don't need the money currently but have decided that I don't want to risk a crash and having to wait years for it to recover

GeoffTF

A 50/50 mix of VLS 60 and VLS 40 will not stay at 50% equities. You could switch to VLS 20 if you feel that 50% equities is too risky for you. If there is no possibility that you will ever need the money, you can invest in whatever you like. It does not matter what you buy. Why would you be worried about a crash if you will never need the money? Or might you need it one day? Or give it away perhaps? We cannot possibly make a judgement here. I expect that only you can.

Alexland

Murmansk said:

The Vanguard Lifestrategy is split 50/50 between 60% and 40% equities funds

Rather than holding 2 multi asset funds it might be cheaper, and you might prefer to hold a 3 fund portfolio of a money market fund (for a best buy cash rate of return), an investment bond fund and a global equties tracker? If you rebalanced every so often that might slighly enhance your return and you would be clear on what money is available in the short term, what is medium term and what is longer term where you need it to hold it's value relative to inflation into your 70s and beyond. As a starter suggestion you might consider a 20/30/50 ratio? It really depends how much money you need to withdraw if you needed to and if you already have savings elsewhere. Also consider moving some of it into a pension wrapper for likely tax advantages.

Albermarle

As above, it all depends on when you might need the money and how much is in this fund compared to your overall finances. 

It is better to think about it in these terms, than trying to guess the future about market crashes. In any case in the last 6 years there have been two reasonably significant market drops and you still managed to make 22%.