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Pension transfer issue: Barclays & Vanguard
Comments
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Just an update on this:
Within a few days of the pension transfer it was put into VLS60 as I requested, needless to the pension is already showing a loss as fund prices have dropped. Ordinarily I wouldn't be bothered as we hold a fair bit of VLS60/ 80 and we're just letting that do its thing with no cut off date.
However as this is literally a seven year SIPP drawdown based on an illustration of £800 a month, I'm wondering if I should put it in an even less riskier option than VLS60, it was suggested above we just need to cover inflation only which makes sense.
Is there anything I can do within the scope of the Vanguard platform to keep it simple, VLS20 or 40 (still risk factor 4 same as VLS60) or cash even at 1.95% ? The drawdown sum is getting reinvested straight back into VLS60 or 80 in a S&S ISA.
I'm just interested in what others might do with such a short potential drawdown period and what effectively is a small pot.0 -
The bonds within Lifestrategy are of longer duration than many other multi-asset funds, so you could always mix something like VLS60 and their MMF, to reduce the duration of the fixed income.
Alternatively, Vanguard have a global short-term bond fund (bonds up to 5 years, GBP hedged), so if you combine that with an equity index fund you could create something that matches your investing horizon.1
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