Vanguard Stocks and Shares ISA S and P 500 Investment Query

bloke91

Hi all,

Looking for your advice and view points please.

I have a Vanguard stocks and shares ISA, majority is invested Life Strategy Fund 60% and Life Strategy 80% funds.

I also have a small amount in the Vanguard S and P 500 Accumulation and S and P 500 Distributing

All the of the above is within my Stocks and Shares ISA wrapper.  I am investing for longer term growth for a retirement nest egg or general savings for later in life. i.e. Kids first house etc.

Which Vanguard S and P 500 account do you feel I should invest in? Accumulation or Distributing

Thanks in advance for your time and help.

Alexland

If this is all in an ISA and you have no reason to draw income then the Acc versions of the funds would be simpler although if you don't also maintain enough cash balance or pay via direct debit then Vanguard may sell down units to pay fees. You may wish to hold Inc to generate cash to pay fees but then depending on the scale of the holdings the cash balance might still be insufficient or start building up and need reinvesting. It doesn't matter much it's down to preference.

I don't really understand why you are holding a balanced, adventurous and now a high risk fund - are they different pots of money intended for different investment timescales? Have you considered if there are better wrappers such as Pension or S&S LISA (if young enough) for the some of these longer term investments?

Hoenir

The S&P500 only has a yield of around 1.19% at current levels. 

Personally I would take the distributing option and use what little income is generated to diversify.