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  • FIRST POST
    • fronty
    • By fronty 8th Nov 19, 5:39 PM
    • 62Posts
    • 14Thanks
    fronty
    Vanguard Target Retirement Funds
    • #1
    • 8th Nov 19, 5:39 PM
    Vanguard Target Retirement Funds 8th Nov 19 at 5:39 PM
    I just stumbled across this:

    https://www.vanguardinvestor.co.uk/investments/vanguard-target-retirement-2030-fund-accumulation-shares

    I'm 50 so this looks like their 2030 fund is a good fit for someone as lazy as me - they take care of the asset allocations as I get older, so I would have absolutely no need to do anything. The Vanguard site says it's currently invested 66% equities, 34% bonds. The 2035 fund is 71% vs 29%.

    Looks like it's too new for the 5yr performance figure column but it already looks like it's doing better than my pension with much lower fees.

    Quite liking the look of this, proper set and forget...
Page 1
    • adindas
    • By adindas 8th Nov 19, 5:51 PM
    • 4,204 Posts
    • 2,698 Thanks
    adindas
    • #2
    • 8th Nov 19, 5:51 PM
    • #2
    • 8th Nov 19, 5:51 PM
    Could this one be used to fund SIPP ??

    I just stumbled across this:

    https://www.vanguardinvestor.co.uk/investments/vanguard-target-retirement-2030-fund-accumulation-shares

    I'm 50 so this looks like their 2030 fund is a good fit for someone as lazy as me - they take care of the asset allocations as I get older, so I would have absolutely no need to do anything. The Vanguard site says it's currently invested 66% equities, 34% bonds. The 2035 fund is 71% vs 29%.

    Looks like it's too new for the 5yr performance figure column but it already looks like it's doing better than my pension with much lower fees.

    Quite liking the look of this, proper set and forget...
    Originally posted by fronty
    • fronty
    • By fronty 8th Nov 19, 6:12 PM
    • 62 Posts
    • 14 Thanks
    fronty
    • #3
    • 8th Nov 19, 6:12 PM
    • #3
    • 8th Nov 19, 6:12 PM
    Could this one be used to fund SIPP ??
    Originally posted by adindas
    I don't know, info seems to be a bit scarce, no factsheet on trustnet, seems a bit odd, still researching...
    • MK62
    • By MK62 8th Nov 19, 6:27 PM
    • 515 Posts
    • 379 Thanks
    MK62
    • #4
    • 8th Nov 19, 6:27 PM
    • #4
    • 8th Nov 19, 6:27 PM
    They are basically roughly equivalent to Lifestrategy funds with risk reducing profiling built-in.

    Some like the profiling.....others (inc me), would prefer to do that themselves (if done at all that is).....


    PS.....so this year the TR2030 fund would be roughly equivalent to Lifestrategy 66, next year it will be Lifestrategy 65........in 2030, probably Lifestrategy 55......and so on......


    PPS....if I was aiming to gradually reduce exposure to equities and increase exposure to bonds as I approached retirement, there's no guarantee I'd do it any better (or worse) than a TR fund though.....
    Last edited by MK62; 08-11-2019 at 7:01 PM.
    • badger09
    • By badger09 9th Nov 19, 11:55 AM
    • 7,518 Posts
    • 7,030 Thanks
    badger09
    • #5
    • 9th Nov 19, 11:55 AM
    • #5
    • 9th Nov 19, 11:55 AM
    But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?
    • Albermarle
    • By Albermarle 9th Nov 19, 12:36 PM
    • 1,758 Posts
    • 1,130 Thanks
    Albermarle
    • #6
    • 9th Nov 19, 12:36 PM
    • #6
    • 9th Nov 19, 12:36 PM
    But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?
    From a logical investment point of view , you would not want to derisk going towards retirement , if you were planning to drawdown the fund over 20-30 years.
    However from a more emotional point of view most ( not all) investors will want to go a bit more defensive and not risk big drops just when they retire .
    Some even just stay in cash , which is the other extreme of course.
    • MK62
    • By MK62 9th Nov 19, 2:54 PM
    • 515 Posts
    • 379 Thanks
    MK62
    • #7
    • 9th Nov 19, 2:54 PM
    • #7
    • 9th Nov 19, 2:54 PM
    But, on retiring at 60/61 like OP, or even 65/67, with potentially 20 - 30 years of retirement ahead of you, do you actually want to reduce your equity exposure to that extent?
    Originally posted by badger09
    That might depend on your goals.......if the "magic" figure has already been reached at retirement (and generally it should have been or else retiring could itself be a considerable risk), some might argue that you should not take on unnecessary higher levels of risk in the pursuit of even more......you may get more, but it could also backfire (perhaps spectacularly).
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