Vanguard Life Strategy 60/40

InvesterJones

daveyjp said:

If 60/40 is no longer a risk you want to take maybe time to look at long term savings lock in. 

For 10 years? That's giving rise to a real performance risk.

CRAIGEMMA

I am in this fund , similar age to yourself and significantly invested and am continuing to add. 
Happy with how it runs, yes bonds have had a bad few years but I am comfortable re holding and continuing to add. 

dgpur

dunstonh said:

I did research before investing in 2019 & it seemed to have performed well.

Thats good because 2018 was a negative year. So, you would have seen that negative years happen before you invested.  

Over the past few years, it hasn't performed well.

Depends what you mean by few.   The only negative year since 2018 was 2022.     2019, 2020, 2021 and 2023 2034 YTD are all positive.   (typo corrected!)

But also read few articles that says 60/40 is outdated & not likely to bounce back, if at all.

Problem with articles is a) you dont know their agenda necessarily and b) the date they are using data from it key.

If the source of the article was 2021 then it could have merit.   If it is 2023 then its completely out of date and wrong.

It is, as much as crystal balls allow, highly unlikely you will see similar performance to the period of 2009 to 2021 being repeated as that was a bubble period created by events that are unlikely to be seen again (for lets say generations)

As anecdotal evidence supporting this I opened my account, with £10,000, at the start of 2022. It crashed and burned (hitting a low of worse than £9000). But since the start of 2023 the trend has been firmly up, adding £500. Still less in it that-n I started with, but very hopeful. I just (unknowingly) chose a bad year to start, and so am happy to continue the many year investment I planned.

P933alilli

dgpur said:

dunstonh said:

I did research before investing in 2019 & it seemed to have performed well.

Thats good because 2018 was a negative year. So, you would have seen that negative years happen before you invested.  

Over the past few years, it hasn't performed well.

Depends what you mean by few.   The only negative year since 2018 was 2022.     2019, 2020, 2021 and 2023 2034 YTD are all positive.   (typo corrected!)

But also read few articles that says 60/40 is outdated & not likely to bounce back, if at all.

Problem with articles is a) you dont know their agenda necessarily and b) the date they are using data from it key.

If the source of the article was 2021 then it could have merit.   If it is 2023 then its completely out of date and wrong.

It is, as much as crystal balls allow, highly unlikely you will see similar performance to the period of 2009 to 2021 being repeated as that was a bubble period created by events that are unlikely to be seen again (for lets say generations)

As anecdotal evidence supporting this I opened my account, with £10,000, at the start of 2022. It crashed and burned (hitting a low of worse than £9000). But since the start of 2023 the trend has been firmly up, adding £500. Still less in it that-n I started with, but very hopeful. I just (unknowingly) chose a bad year to start, and so am happy to continue the many year investment I planned.

I did similarly , started end of january 2022, and i'm about 0.73% down after adding bits here and there. But i'm leaving it now, wrongly or rightly, as i'm not sure i have the confidence that it will be much different come 2032. Again rightly or wrongly, ive done a cash ladder of 1-5 years at between 5-6.2% for everything else on top of my small DC pension. I'm a retiree' but not yet state pension age though!

Albermarle

dgpur said:

dunstonh said:

I did research before investing in 2019 & it seemed to have performed well.

Thats good because 2018 was a negative year. So, you would have seen that negative years happen before you invested.  

Over the past few years, it hasn't performed well.

Depends what you mean by few.   The only negative year since 2018 was 2022.     2019, 2020, 2021 and 2023 2034 YTD are all positive.   (typo corrected!)

But also read few articles that says 60/40 is outdated & not likely to bounce back, if at all.

Problem with articles is a) you dont know their agenda necessarily and b) the date they are using data from it key.

If the source of the article was 2021 then it could have merit.   If it is 2023 then its completely out of date and wrong.

It is, as much as crystal balls allow, highly unlikely you will see similar performance to the period of 2009 to 2021 being repeated as that was a bubble period created by events that are unlikely to be seen again (for lets say generations)

As anecdotal evidence supporting this I opened my account, with £10,000, at the start of 2022. It crashed and burned (hitting a low of worse than £9000). But since the start of 2023 the trend has been firmly up, adding £500. Still less in it that-n I started with, but very hopeful. I just (unknowingly) chose a bad year to start, and so am happy to continue the many year investment I planned.

In the world of investing, 'crashed and burned' would normally be taken to meant a huge drop in value. At least a 50% drop if not a drop to zero .
10% or even 20%  is a normal sort of drop you see regularly with a 60/40 fund, and is part of the normal cycle of investing.

Ciprico

...I too have a bit of vls60 and find it disappointing that the bond part is responsible for the drop and also responsible for the non recovery... 

Ie the 40% bond part abjectly failed to deliver it's one job and looks like it won't recover for some time. But at least now it should function as ballast if the 60% stock part tanks...

dgpur

Albermarle said:

dgpur said:

dunstonh said:

I did research before investing in 2019 & it seemed to have performed well.

Thats good because 2018 was a negative year. So, you would have seen that negative years happen before you invested.  

Over the past few years, it hasn't performed well.

Depends what you mean by few.   The only negative year since 2018 was 2022.     2019, 2020, 2021 and 2023 2034 YTD are all positive.   (typo corrected!)

But also read few articles that says 60/40 is outdated & not likely to bounce back, if at all.

Problem with articles is a) you dont know their agenda necessarily and b) the date they are using data from it key.

If the source of the article was 2021 then it could have merit.   If it is 2023 then its completely out of date and wrong.

It is, as much as crystal balls allow, highly unlikely you will see similar performance to the period of 2009 to 2021 being repeated as that was a bubble period created by events that are unlikely to be seen again (for lets say generations)

As anecdotal evidence supporting this I opened my account, with £10,000, at the start of 2022. It crashed and burned (hitting a low of worse than £9000). But since the start of 2023 the trend has been firmly up, adding £500. Still less in it that-n I started with, but very hopeful. I just (unknowingly) chose a bad year to start, and so am happy to continue the many year investment I planned.

In the world of investing, 'crashed and burned' would normally be taken to meant a huge drop in value. At least a 50% drop if not a drop to zero .
10% or even 20%  is a normal sort of drop you see regularly with a 60/40 fund, and is part of the normal cycle of investing.

Maybe a bit of an overstatement on my part, but it was a bit annoying, at the time, to see over 10% of the investment I made disappear in next to no time. But I knew what I was getting into, and I have the time to wait for things to get better.

dgpur

Collyflower1 said:

dgpur said:

dunstonh said:

I did research before investing in 2019 & it seemed to have performed well.

Thats good because 2018 was a negative year. So, you would have seen that negative years happen before you invested.  

Over the past few years, it hasn't performed well.

Depends what you mean by few.   The only negative year since 2018 was 2022.     2019, 2020, 2021 and 2023 2034 YTD are all positive.   (typo corrected!)

But also read few articles that says 60/40 is outdated & not likely to bounce back, if at all.

Problem with articles is a) you dont know their agenda necessarily and b) the date they are using data from it key.

If the source of the article was 2021 then it could have merit.   If it is 2023 then its completely out of date and wrong.

It is, as much as crystal balls allow, highly unlikely you will see similar performance to the period of 2009 to 2021 being repeated as that was a bubble period created by events that are unlikely to be seen again (for lets say generations)

As anecdotal evidence supporting this I opened my account, with £10,000, at the start of 2022. It crashed and burned (hitting a low of worse than £9000). But since the start of 2023 the trend has been firmly up, adding £500. Still less in it that-n I started with, but very hopeful. I just (unknowingly) chose a bad year to start, and so am happy to continue the many year investment I planned.

I did similarly , started end of january 2022, and i'm about 0.73% down after adding bits here and there. But i'm leaving it now, wrongly or rightly, as i'm not sure i have the confidence that it will be much different come 2032. Again rightly or wrongly, ive done a cash ladder of 1-5 years at between 5-6.2% for everything else on top of my small DC pension. I'm a retiree' but not yet state pension age though!

We’re early retirees (due to ill health) and aside from PIP live off a large savings pot. I think it makes sense to have a varied investment, so that includes Vanguard for the foreseeable. Though our investment via Nutmeg has performed much better overall.

InvesterJones

Ciprico said:

...I too have a bit of vls60 and find it disappointing that the bond part is responsible for the drop and also responsible for the non recovery... 

Ie the 40% bond part abjectly failed to deliver it's one job and looks like it won't recover for some time. But at least now it should function as ballast if the 60% stock part tanks...

Bond funds should start to perform better when banks cut interest rates