advice for falling market

boingy

If The "Hitchhiker's Guide to the Galaxy" had instead been called the "Hitchhiker's Guide to Investing" the cover would have said, in large friendly letters:

SIT TIGHT AND DON'T PANIC

The tariffs are unsustainable and the markets will recover. It may take a while but that's investing for ya. 

pecunianonolet

Is there already blood in the streets, is the time right to buy?

RandomUser004

Thanks very much to all contributors that is super useful. 

Really appreciate the time you have taken to put together these well-informed and thoughtful replies. 

Cheers! 

RandomUser004

Thanks to all contributors. My gut was to ride it out but I thought it worth sampling opinion that is better informed.

I take the point about developing more awareness gong forward and will try to do so.

Thanks all. Very much appreciated 👍

RandomUser004

Eyeful said:

It is always scary for a newbie when they experience their first large market fall.
If you do not actually need the money, then there is no point in selling now.
You are at the moment defensively positioned as you have 60% in bonds. 

During my life, at times like this,. I see the talking heads on TV and in the news come out and say 
"but this time its different", but it never is.

You have a Global Multi-Asset Fund which is defensively positioned. 
As long as you have enough money to cover your needs, don't worry. I hope you have a happy retirement.

As you have a VLS fund, I suggest you watch this James Shack video on You Tube

Vanguard Lifestrategy Funds Explained | The only fund you will ever need? (Investing for beginners)

That's very clear. Thanks!

RandomUser004

Albermarle said:

Firstly I don't know much  about stocks, and I don't monitor the markets closely, so this is a no-brainer question please bear with me.

I have an overall savings pot of  @ 550k invested largely in the Vanguard life strategy 40% equity fund. I chose vlVanguard because it's supposed to be a relatively safe haven for inexperienced investors like myself.

I have a year or two before retirement. I also have some cash savings but the bulk of my retirement fund is in stocks and shares

As said VLS40 is probably not a bad place to be currently, but I think with over half a Million Pounds invested, I would work to improve my knowledge, or maybe employ an IFA.

Retirement/withdrawal strategies ( when you retire) take a bit more knowledge than when just building up your pot, to maximise tax efficiency and to not take too much drawdown income ( so the pot does not run out)
Or if you were thinking of buying an annuity, you should be derisking further now for example.

I take your point about the need for knowledge. Thanks.

RandomUser004

Ivkoto said:

RandomUser004 said:

Firstly I don't know much  about stocks, and I don't monitor the markets closely, so this is a no-brainer question please bear with me.

I have an overall savings pot of  @ 550k invested largely in the Vanguard life strategy 40% equity fund. I chose vlVanguard because it's supposed to be a relatively safe haven for inexperienced investors like myself.

I have a year or two before retirement. I also have some cash savings but the bulk of my retirement fund is in stocks and shares.

With the global mayhem at the moment my fund is falling, or at least the equity part is. 

I don't want to lose too much from my retirement fund.

So, would you:

1.  sell now and put the money into cash or bonds? 

2 grit your teeth, ride out the turbulence and stick with the vanguard funds? 

3. something else?

I realised no one has a crystal ball... Just seeking thoughts from people more experienced than myself in this area.

Thanks in advance! ☺️

The Vanguard Life strategy 40 is de risked enough in my opinion. If it was me, I would sell the whole portfolio and buy VLS60 ( replacing 20% bonds for 20% equities) at discount price right now. I suppose your money will be invested for many years and depending on how much you need a year, it may not last for long with so small part in equities.

Interesting... convert to a higher risk profile.

Would you do that if you were planning on retirement in the next couple of years?

Ivkoto

RandomUser004 said:

Ivkoto said:

RandomUser004 said:

Firstly I don't know much  about stocks, and I don't monitor the markets closely, so this is a no-brainer question please bear with me.

I have an overall savings pot of  @ 550k invested largely in the Vanguard life strategy 40% equity fund. I chose vlVanguard because it's supposed to be a relatively safe haven for inexperienced investors like myself.

I have a year or two before retirement. I also have some cash savings but the bulk of my retirement fund is in stocks and shares.

With the global mayhem at the moment my fund is falling, or at least the equity part is. 

I don't want to lose too much from my retirement fund.

So, would you:

1.  sell now and put the money into cash or bonds? 

2 grit your teeth, ride out the turbulence and stick with the vanguard funds? 

3. something else?

I realised no one has a crystal ball... Just seeking thoughts from people more experienced than myself in this area.

Thanks in advance! ☺️

The Vanguard Life strategy 40 is de risked enough in my opinion. If it was me, I would sell the whole portfolio and buy VLS60 ( replacing 20% bonds for 20% equities) at discount price right now. I suppose your money will be invested for many years and depending on how much you need a year, it may not last for long with so small part in equities.

Interesting... convert to a higher risk profile.

Would you do that if you were planning on retirement in the next couple of years?

Yes, I would definitely do it, but I would never be in so low equities portfolio in first place! Are you thinking to take all your money in 2 years? If no, as I said earlier , you would expect the money to last for long period ( maybe 30+ years ), so with low equity part, that may not work, unless you rely on other sources of income. 

LHW99

Ivkoto said:

RandomUser004 said:

Ivkoto said:

RandomUser004 said:

Firstly I don't know much  about stocks, and I don't monitor the markets closely, so this is a no-brainer question please bear with me.

I have an overall savings pot of  @ 550k invested largely in the Vanguard life strategy 40% equity fund. I chose vlVanguard because it's supposed to be a relatively safe haven for inexperienced investors like myself.

I have a year or two before retirement. I also have some cash savings but the bulk of my retirement fund is in stocks and shares.

With the global mayhem at the moment my fund is falling, or at least the equity part is. 

I don't want to lose too much from my retirement fund.

So, would you:

1.  sell now and put the money into cash or bonds? 

2 grit your teeth, ride out the turbulence and stick with the vanguard funds? 

3. something else?

I realised no one has a crystal ball... Just seeking thoughts from people more experienced than myself in this area.

Thanks in advance! ☺️

The Vanguard Life strategy 40 is de risked enough in my opinion. If it was me, I would sell the whole portfolio and buy VLS60 ( replacing 20% bonds for 20% equities) at discount price right now. I suppose your money will be invested for many years and depending on how much you need a year, it may not last for long with so small part in equities.

Interesting... convert to a higher risk profile.

Would you do that if you were planning on retirement in the next couple of years?

Yes, I would definitely do it, but I would never be in so low equities portfolio in first place! Are you thinking to take all your money in 2 years? If no, as I said earlier , you would expect the money to last for long period ( maybe 30+ years ), so with low equity part, that may not work, unless you rely on other sources of income. 

Depends how you want to take the money IMO.

If you need to buy an annuity, then VLS 40 may be appropriate. If you plan drawdown however, the money could be invested for 30+years, so plenty of time for recovery.

Generally said, you only have a loss when you sell - otherwise it's all on paper. Maybe ensure you have a few year's income in cash by the time you retire and gradually change the rest to a higher equity proportion bit by bit at that time.

MEM62

RandomUser004 said:

I have an overall savings pot of  @ 550k invested largely in the Vanguard life strategy 40% equity fund. I chose vlVanguard because it's supposed to be a relatively safe haven for inexperienced investors like myself.

I have a year or two before retirement. I also have some cash savings but the bulk of my retirement fund is in stocks and shares.

The first statement means that the second cannot be true.  At least 60% of your pension is not in equities.   

With the global mayhem at the moment my fund is falling, or at least the equity part is.

Such events happen from time to time.  It is not a reason to panic.    

I don't want to lose too much from my retirement fund.

So, would you:

1.  sell now and put the money into cash or bonds?   Absolutely not.  Personally, think your are too light on equities already.  

2 grit your teeth, ride out the turbulence and stick with the vanguard funds?   Grit your teeth yes, but consider weighting your weighting should be more towards equities.  

3. something else?

I realised no one has a crystal ball... Just seeking thoughts from people more experienced than myself in this area.

Thanks in advance! ☺️

No panic needed.  Stay invested and concentrate on your long term goals.