We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Vanguard ISA transfer to Target Retirement Fund

Hi,

Would it be possible to transfer an existing Vanguard ISA (FTSE Global All Cap) to one of Vanguard's TRFs under an ISA umbrella?

Comments

  • badger09
    badger09 Posts: 11,472 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    AsifM068 said:
    Hi,

    Would it be possible to transfer an existing Vanguard ISA (FTSE Global All Cap) to one of Vanguard's TRFs under an ISA umbrella?
    The ISA is just the tax wrapper, so no transfer is necessary. Sell Vanguard FTSE Global All Cap & buy whichever Vanguard TRF you want. 
    What’s the attraction of their TRFs?
  • AsifM068
    AsifM068 Posts: 184 Forumite
    Third Anniversary 100 Posts Photogenic
    badger09 said:
    AsifM068 said:
    Hi,

    Would it be possible to transfer an existing Vanguard ISA (FTSE Global All Cap) to one of Vanguard's TRFs under an ISA umbrella?
    The ISA is just the tax wrapper, so no transfer is necessary. Sell Vanguard FTSE Global All Cap & buy whichever Vanguard TRF you want. 
    What’s the attraction of their TRFs?
    Thank you so much for the clarification. I'm about 5 years away from retirement so I am just scoping out my options to lower my risk profile through a higher exposure to bonds; is this strategy flawed?
  • badger09
    badger09 Posts: 11,472 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Not necessarily flawed, but not the only option. Some pros & cons here, and I’m sure there are other articles online

    https://monevator.com/vanguard-target-retirement-funds/

    Hopefully one of our regular IFA posters such as @dunstonh will be along with an opinion. 
  • Alexland
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 12 June 2024 at 10:22AM
    AsifM068 said:
    Thank you so much for the clarification. I'm about 5 years away from retirement so I am just scoping out my options to lower my risk profile through a higher exposure to bonds; is this strategy flawed?
    It really depends on your strategy for drawing retirement income - the asset allocation suitable for holding now depends on what you will do next.

    For example are you looking to de-risk and performance link to bond yields in anticipation of buying an annuity or will you be doing drawdown from an investment pot which would require you to carry a fair amount of investment risk during your retirement to generate enough likely performance for inflation protection?

    Also if this is for retirement have you considered if a pension might be better than an ISA? Again it depends on how you will use it for example if you want access to lump sums at short notice then maybe a cash ISA would be better but if you just want a trickle of income a pension may be better.
  • Beddie
    Beddie Posts: 936 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    Another option is one of the LifeStrategy funds, which have a fixed bond amount. 
  • AsifM068
    AsifM068 Posts: 184 Forumite
    Third Anniversary 100 Posts Photogenic
    Thank you all for the pointers; stay tuned for more crazy ideas on the investment front!
  • AsifM068
    AsifM068 Posts: 184 Forumite
    Third Anniversary 100 Posts Photogenic
    Vanguard has advised me that I will have to sell and buy the TRF (as advised - thank you Badger) via the 'switch option' and my ISA wrapper is not affected.

    Thanks again folks.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.