Complimentary fund for Lifestrategy 80
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I have VLS80 and VLS60 running concurrently. I used to buy them via Charles Stanley too, but moved them to Vanguard themselves - bit cheaper.If you will the end, you must will the means.0
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Is that because you believe VLS70 fits your risk profile better than 60 or 80?0
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£50 into a seperate fund isn't worth the bother. Once the VLS is of larger value. Then channel your entire monthly savings into another fund.0
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What about a bit of Vanguard Global Small-Cap? From what I can see VLS doesn't have small caps?0
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So keep saving into VLS then start on another one when it's of larger value? What would you consider larger value?Thrugelmir wrote: ȣ50 into a seperate fund isn't worth the bother. Once the VLS is of larger value. Then channel your entire monthly savings into another fund.
I don't think it does no, however it seems like a lot of other funds. When you compare them to VLS they seem to follow the same patterns, the same ups and downs even though its meant to be a different market.What about a bit of Vanguard Global Small-Cap? From what I can see VLS doesn't have small caps?0 -
So keep saving into VLS then start on another one when it's of larger value? What would you consider larger value?
An objective based on your personal goals. Personally as an initial core holding I would target a minimum £30k. As it's a large broad based fund. With the number of companies held within. You actually own very little of any of them.0 -
OK, I think I will stick with VLS for now until I've got more in it and then look at it again then what I could start putting into as well. It's difficult finding something that has different peaks than VLS due to how broad it is.Thrugelmir wrote: »An objective based on your personal goals. Personally as an initial core holding I would target a minimum £30k. As it's a large broad based fund. With the number of companies held within. You actually own very little of any of them.
One thing I have been wondering. I'm doing this into an ACC VLS rather than an income one. When I want to start getting an income from it, do I have to transfer it all into an income version or just leave it where it is and draw it down from there?0 -
The ACC version of the fund doesn't pay an income to you, as your choice by opting for ACC is to have the fund manager reinvest any dividend and interest income that the fund receives (after costs of running the fund) back into more investment assets for the fund.One thing I have been wondering. I'm doing this into an ACC VLS rather than an income one. When I want to start getting an income from it, do I have to transfer it all into an income version or just leave it where it is and draw it down from there?
If you sell out of the ACC fund and buy the INC version of the fund instead, the fund manager will be taking any dividend and interest income that the fund receives, after costs of running the fund, and paying it out to investors such as yourself. So every so often - on each dividend date - the fund value will reduce and cash will arrive in your account.
However, the amount of money that arrives in your account from the INC fund may not be the amount of money you want to get from the fund. It might be that you want £5000 a year to live on, but the fund's natural rate of dividends on the size of investment you have (say £100k) is only £2000 a year. So you would need to manually sell some of your units in the fund to get your hands on a further £3000 of cash.
Alternatively, maybe the INC fund is paying £2000 a year but you only need £1500 a year for your living costs. So you end up with more money than you wanted, and if you want to keep the £500 invested you will have to do a small purchase each time they pay you the dividends, so that you've only reduced your investment holding by £1500.
So, unless the amount of money you want to take from the fund each month or each year exactly equals the natural income rate of the fund, your choice to move to the INC version does not prevent you from having to do some extra selling or buying. And if you know you are going to have to do some selling or buying over the course of a year anyway, you might decide that you prefer to keep the ACC fund and just sell a bit of it each time you want some cash out of it.0 -
As you are with Charles Stanley Direct, fund dealing is free (or covered in your annual charges anyway), so it makes little difference in your ISA whether you hold ACC or INC versions, but personally I'd choose the ACC version and just sell down enough units each year to cover your income.0
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OK, I think I will stick with VLS for now until I've got more in it and then look at it again then what I could start putting into as well. It's difficult finding something that has different peaks than VLS due to how broad it is.
One thing I have been wondering. I'm doing this into an ACC VLS rather than an income one. When I want to start getting an income from it, do I have to transfer it all into an income version or just leave it where it is and draw it down from there?
When you start taking an income you don't just have to take the income. You can sell units instead. Makes little difference overall. And you might choose a different fund anyway that has more of an income focus. Plenty of time to ponder that
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