more SIPP dilemmas

Albermarle

martin7575 said:

@LHW99 any experience with ii?

Might be a good idea to review all the thread again before asking too many more questions. In fact this was the very first answer you got to your original post.

The most important thing is to get investing. Keep dawdling and you’ll find that the tax year is over and you’ve missed out on this year’s allowances. There is such a thing as paralysis by analysis. 

badger09

Albermarle said:

martin7575 said:

@LHW99 any experience with ii?

Might be a good idea to review all the thread again before asking too many more questions. In fact this was the very first answer you got to your original post.

The most important thing is to get investing. Keep dawdling and you’ll find that the tax year is over and you’ve missed out on this year’s allowances. There is such a thing as paralysis by analysis. 

BIB 
I couldn’t agree more. 

Paralysis by analysis is a trait I recognise in myself, and have to work hard to overcome. 

gabiieve

ColdIron said:

When you started you were looking for a medium risk fund, one of the target retirement funds, multi asset with a mix of equities and bonds. The All Cap is 100% equity, hardly medium risk. The LifeStrategy 60 is medium risk and much the same as the target fund but without the lifestyling. I don't think it was established whether the extra cost of the managed/do it for you option just bought lifestyling at an extra cost

To summarise

Vanguard FTSE Global All Cap: 100% equity, 0.38% fee

Vanguard LifeStrategy: multi-asset equity/bonds, 0.37% fee

Vanguard Target Retirement: multi-asset equity/bonds 0.39% fee. Lifestyling

Vanguard managed/do it for you: multi-asset equity/bonds, 0.61% fee. Lifestyling unknown

I didn't want to create a whole new thread just to ask one question, so I hope you don't mind me quoting you. 

I find choosing bonds overwhelming and have put it off for about 3 months now. I like that LifeStrategy chooses the bonds for you, but I don't like the home bias. If I want a 80:20 allocation with less home bias, am I right that this can be achieved with contributing the same amount to:

Vanguard FTSE Global All Cap
and
Vanguard LifeStrategy 60:40

?

Are there any clear downsides I'm missing?

Albermarle

gabiieve said:

ColdIron said:

When you started you were looking for a medium risk fund, one of the target retirement funds, multi asset with a mix of equities and bonds. The All Cap is 100% equity, hardly medium risk. The LifeStrategy 60 is medium risk and much the same as the target fund but without the lifestyling. I don't think it was established whether the extra cost of the managed/do it for you option just bought lifestyling at an extra cost

To summarise

Vanguard FTSE Global All Cap: 100% equity, 0.38% fee

Vanguard LifeStrategy: multi-asset equity/bonds, 0.37% fee

Vanguard Target Retirement: multi-asset equity/bonds 0.39% fee. Lifestyling

Vanguard managed/do it for you: multi-asset equity/bonds, 0.61% fee. Lifestyling unknown

I didn't want to create a whole new thread just to ask one question, so I hope you don't mind me quoting you. 

I find choosing bonds overwhelming and have put it off for about 3 months now. I like that LifeStrategy chooses the bonds for you, but I don't like the home bias. If I want a 80:20 allocation with less home bias, am I right that this can be achieved with contributing the same amount to:

Vanguard FTSE Global All Cap
and
Vanguard LifeStrategy 60:40

?

Are there any clear downsides I'm missing?

That would work to some extent, but would probably be easier just to invest in a multi asset fund with no UK bias i.e. not Vanguard Life Strategy.

ColdIron

It would work but you may find that you have to rebalance occasionally as the All Cap grows more than the VLS 60. It could be simpler to use something without the UK bias like the HSBC Global Strategy Dynamic which is well regarded and manages the bond part to maintain the same risk profile

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-global-strategy-dynamic-portfolio-c-accumulation

dunstonh

gabiieve said:

ColdIron said:

When you started you were looking for a medium risk fund, one of the target retirement funds, multi asset with a mix of equities and bonds. The All Cap is 100% equity, hardly medium risk. The LifeStrategy 60 is medium risk and much the same as the target fund but without the lifestyling. I don't think it was established whether the extra cost of the managed/do it for you option just bought lifestyling at an extra cost

To summarise

Vanguard FTSE Global All Cap: 100% equity, 0.38% fee

Vanguard LifeStrategy: multi-asset equity/bonds, 0.37% fee

Vanguard Target Retirement: multi-asset equity/bonds 0.39% fee. Lifestyling

Vanguard managed/do it for you: multi-asset equity/bonds, 0.61% fee. Lifestyling unknown

I didn't want to create a whole new thread just to ask one question, so I hope you don't mind me quoting you. 

I find choosing bonds overwhelming and have put it off for about 3 months now. I like that LifeStrategy chooses the bonds for you, but I don't like the home bias. If I want a 80:20 allocation with less home bias, am I right that this can be achieved with contributing the same amount to:

Vanguard FTSE Global All Cap
and
Vanguard LifeStrategy 60:40

?

Are there any clear downsides I'm missing?

Using the HSBC GS funds would remove that problem.

gabiieve

ColdIron said:

It would work but you may find that you have to rebalance occasionally as the All Cap grows more than the VLS 60. It could be simpler to use something without the UK bias like the HSBC Global Strategy Dynamic which is well regarded and manages the bond part to maintain the same risk profile

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-global-strategy-dynamic-portfolio-c-accumulation

Thank you for this. I've only just opened a Vanguard S&S ISA so was focusing on the funds they have. I'll check the HSBC fund and decide if it's worth moving my ISA