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How to invest in the Vanguard index fund?

2

Comments

  • BLB53
    BLB53 Posts: 1,583 Forumite
    His advice was keep it simple and ultra low cost . So that's my base really, but open to any other suggestions as I'm still learning what route is best.
    Vanguard Lifestrategy 80 would be a much better option imho as it gives exposure to global markets including the S&P 500 whereas the FTSE makes up less than 10% of the world market.
  • edinburgher
    edinburgher Posts: 14,043 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I am surprised by the number of self-professed novice investors who are familiar with some version of what is coming out from Warren Buffet's latest missive!
  • BLB53
    BLB53 Posts: 1,583 Forumite
    I am surprised by the number of self-professed novice investors who are familiar with some version of what is coming out from Warren Buffet's latest missive!
    Not really that surprising as it was flagged up on the popular Monevator site this weekend.
  • Johnsmith2016
    Johnsmith2016 Posts: 436 Forumite
    It was on my iPhone news feed about warren recommended index, I then did a bit of googling etc.

    Thanks for the recommendation on the lifestyle products, that makes sense to me, to have global exposure ... I only picked the ftse as I thought that was our equivilant to the s&p he recommends
  • Johnsmith2016
    Johnsmith2016 Posts: 436 Forumite
    Yes I read the monevator article also. Even mentioned what he has instructed his advisors to do with his wife's wealth in the event of his death . 90% in index funds, 10% in gilts. That's it lol.
    Don't even know what a gilt is haha. But anyway I like his straight forward approach.
  • edinburgher
    edinburgher Posts: 14,043 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    BLB53 wrote: »
    Not really that surprising as it was flagged up on the popular Monevator site this weekend.

    I don't think it's Monevator that has brought the Sage of Omaha to the masses, much as I like the blog ;)
  • EdGasket
    EdGasket Posts: 3,503 Forumite
    Johnsmith2016 wrote: »
    It was on my iPhone news feed about warren recommended index, I then did a bit of googling etc.

    Thanks for the recommendation on the lifestyle products, that makes sense to me, to have global exposure ... I only picked the ftse as I thought that was our equivilant to the s&p he recommends

    A FTSE250 tracker might be closer to S&P for us brits; Vanguard do one of those ETF's too. Remember if you buy a global or foreign fund you are exposed to currency fluctuations as well as fund fluctuations (unless you buy a sterling-hedged fund). That could go be a benefit or not depending on the strength of sterling.
  • dunstonh
    dunstonh Posts: 120,083 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The reason I have so far picked the vanguard fund following the ftse 100 is due to listening to warren Buffett's annual Berkshire Hathaway shareholder meeting this year and he was asked how would you invest your money if you was 30years old today. And he simply said a low cost index fund that follows the S&P 500

    1 - he was addressing US investors. US taxation on investments is different to UK. So following US investment advice is not a good idea.
    2 - he does not follow that strategy himself
    3 - he mocks others that do the same job as him
    4 - The S&P500 is not the FTSE100. Not even close.
    5 - You acknowledge your lack of knowledge. A little bit of knowledge can be a bad thing as you grasp onto things that do not make sense.

    Single sector funds are there to be held in a portfolio of other single sector funds. Holding one by itself means you are putting all your money in one place. Every year, the market that is top or bottom will be different. You want to put all your money in one market?
    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.
  • edinburgher
    edinburgher Posts: 14,043 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'm not sure that #2-3 from that list are relevant. He is happy to advise the approach for his heirs and as for mocking his peers a little? I'd say that he has earned the right.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Johnsmith2016 wrote: »
    Yes I read the monevator article also. Even mentioned what he has instructed his advisors to do with his wife's wealth in the event of his death . 90% in index funds, 10% in gilts. That's it lol.
    Don't even know what a gilt is haha. But anyway I like his straight forward approach.

    That's probably a Mis quote, gilts are uk government bonds, it's highly unlikely he would recommend this in his situation. He probably said treasuries which are the us government equivalent.
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