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.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Investment mix

topyam
topyam Posts: 284 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
edited 8 October at 10:18PM in Savings & investments
What is everyone's opinions on this?

Have inherited approx £100k pension
Moving providers, and looking at investments

Am 44. Will have the option to draw down, but won't need this in the near future.
So looking a set and forget investment plan.

Vanguard LifeStrategy 60% Equity Fund (Acc) - 60%
Fidelity Index World Fund (Acc) - 40%

Want it to grow, but not go for anything v v risky.

I'm no expert. 

«1

Comments

  • dunstonh
    dunstonh Posts: 120,136 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Vanguard LifeStrategy 60% Equity Fund (Acc) - 60%
    Fidelity Index World Fund (Acc) - 40%
    What is the point of that?
    You are just increasing the equity content a bit more whilst retaining a small bit of home bias.

    Why not go VLS80 or other alternative if you are not really after as much home bias?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • topyam
    topyam Posts: 284 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Go just VLS 80? 
  • InvesterJones
    InvesterJones Posts: 1,317 Forumite
    1,000 Posts Third Anniversary Name Dropper
    topyam said:
    What is everyone's opinions on this?

    Have inherited approx £100k pension
    Moving providers, and looking at investments

    Am 44. Will have the option to draw down, but won't need this in the near future.
    So looking a set and forget investment plan.

    Vanguard LifeStrategy 60% Equity Fund (Acc) - 60%
    Fidelity Index World Fund (Acc) - 40%

    Want it to grow, but not go for anything v v risky.

    I'm no expert. 


    How much do you need it to grow to meet your needs? Once decided, you can take the investment option that meets that at the lowest risk.
  • Albermarle
    Albermarle Posts: 28,843 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    You will be investing at about 75% equity.
    For a 44 year old with lets say a normal risk tolerance, who does not need the money in the short/medium term, it is probably about right.
    Be aware in a big stock market crash it could still drop 30%, so you need to be ready mentally for that and whatever you do , do not pull out at the bottom.
    If that makes you feel too anxious then dial down the equity % a bit, although probably in the long term it will grow less.
    Maybe have a look at these as a possible alternative.
    Multi Asset Funds | Ready-made Portfolios - HSBC UK

    SIPPs  will normally have them available to invest in.
  • topyam
    topyam Posts: 284 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Being an inherited pension, I had the option to take the lump sum tax free, but I decided against that. Main reason being that I don't need the money straight away, and I'd like the money to grow. I feel a responsibility to do the best that I can with it.
    I had the option to stay with the current provider (L&G) for the drawdown pension, but the yearly charge would be 0.37%, which I think is on the high side. Unless L&G offer something great that would justify paying that, moving to another provider seems sensible.
    I'm drawn to a ready-made portfolio just as I'm new to all this, can't see myself tinkering too much with it.
    Vanguard LS keeps coming up. I can't decide whether 60 or 80 feels more right. I'm probs right in between! 

  • Enzo_L
    Enzo_L Posts: 756 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    topyam said:

    Vanguard LS keeps coming up. I can't decide whether 60 or 80 feels more right. I'm probs right in between! 

    If you put half into VLS60 and half into VLS80 then you'll have created your own VLS70.   :)
  • Albermarle
    Albermarle Posts: 28,843 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    topyam said:
    Being an inherited pension, I had the option to take the lump sum tax free, but I decided against that. Main reason being that I don't need the money straight away, and I'd like the money to grow. I feel a responsibility to do the best that I can with it.
    I had the option to stay with the current provider (L&G) for the drawdown pension, but the yearly charge would be 0.37%, which I think is on the high side. Unless L&G offer something great that would justify paying that, moving to another provider seems sensible.
    I'm drawn to a ready-made portfolio just as I'm new to all this, can't see myself tinkering too much with it.
    Vanguard LS keeps coming up. I can't decide whether 60 or 80 feels more right. I'm probs right in between! 

    With the L&G charges it depends what the 0.37% covers. 
    If you hold VLS funds on the Vanguard platform the total charge is also 0.37%.

    L&G seems not that committed to pensions long term and I am not sure how flexible they are on withdrawal options when you get to that stage.
    Vanguard platform is popular but their customer service seems slow to respond, according to many complaints on here.
    The Vanguard LS funds are widely available with other SIPP providers.
  • topyam
    topyam Posts: 284 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    topyam said:
    Being an inherited pension, I had the option to take the lump sum tax free, but I decided against that. Main reason being that I don't need the money straight away, and I'd like the money to grow. I feel a responsibility to do the best that I can with it.
    I had the option to stay with the current provider (L&G) for the drawdown pension, but the yearly charge would be 0.37%, which I think is on the high side. Unless L&G offer something great that would justify paying that, moving to another provider seems sensible.
    I'm drawn to a ready-made portfolio just as I'm new to all this, can't see myself tinkering too much with it.
    Vanguard LS keeps coming up. I can't decide whether 60 or 80 feels more right. I'm probs right in between! 

    With the L&G charges it depends what the 0.37% covers. 
    If you hold VLS funds on the Vanguard platform the total charge is also 0.37%.

    L&G seems not that committed to pensions long term and I am not sure how flexible they are on withdrawal options when you get to that stage.
    Vanguard platform is popular but their customer service seems slow to respond, according to many complaints on here.
    The Vanguard LS funds are widely available with other SIPP providers.
    Was thinking of AJ Bell. They seem one of cheapest cost-wise, and I have a SIPP with them atm.
    The 0.37% with L&G is their Annual Management Charge.
    That seems high compared to others like AJB. 

  • Exodi
    Exodi Posts: 4,193 Forumite
    Eighth Anniversary 1,000 Posts Wedding Day Wonder Name Dropper
    edited 9 October at 3:54PM
    topyam said:
    Vanguard LifeStrategy 60% Equity Fund (Acc) - 60%
    Fidelity Index World Fund (Acc) - 40%
    Doesn't really make sense.

    You're combining a fund with 60% equities (with a big home bias) and 40% bonds with another fund that is 100% equities. The resulting mix would be 76% equities (with a smaller home bias) and 24% bonds.

    One might just wonder why you wouldn't just invest in LS80 instead (assuming you want the home bias) or put 80% into the world fund and 20% into a bond fund if you don't. The point of using LS funds is so you don't have to do this.
    Know what you don't
  • Eyeful
    Eyeful Posts: 1,060 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    edited 9 October at 4:17PM
    topyam said:

    I'm drawn to a ready-made portfolio just as I'm new to all this, can't see myself tinkering too much with it.
    Vanguard LS keeps coming up. I can't decide whether 60 or 80 feels more right. I'm probs right in between! 

    It sounds like you want a Low Cost Multi Asset Fund.

    (a) Then read this: https://monevator.com/passive-fund-of-funds-the-rivals/
    (b) This should be of interest to you:. 

    https://www.youtube.com/watch?v=lGQ9KyQq8Jw
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
  • 352K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.6K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only 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.