Views please on £280k investment portfolio

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  • badger09
    badger09 Posts: 11,201 Forumite
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    aroominyork wrote: »
    All of Vanguard's four LifeStrategy funds - from 20/80 through to 80/20 equity/bond allocation - returned between 10.5% and 11.5% in 2015/16 when most multi-asset funds struggled to produce a positive return. What does that tell us about their strategy and how it will (edit - might) play out in future equity downturns?

    I don't know which multi-asset funds you're referring to, but the VLS range is made up of various Index Funds. So they will perform in accordance with the performance of those Indices:cool:
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 7 July 2017 at 1:56PM
    Thrugelmir wrote: »
    That's a statement not a fact though. Suggest an investment that offers that potential rate of return currently.

    It is a fact that my 60/40 portfolio averaged 8% over the last 30 years, the trick, as you point out, is to get that in the next 30 years. VLS80 or VLS60 has the potential to return 8% over 30 years........but will it and what are the chances? You might do better to plan on a lower return of maybe 6% given the current outlook., I certainly don't expect bonds to do as well over the next 10 years as they did in the last 10 years. I'm going to a 75/25 allocation because I can take the risk and don't mind the volatility of an equity heavy portfolio. I'm just reinvesting dividends and allowing my equity allocation to increase in my simple 3 fund index portfolio. Over the last 12 months it's up almost 13% and I've done nothing apart from replenish my cash buffer because I had to do some renovations on a rental property. When the market falls I'll rebalance.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • aroominyork
    aroominyork Posts: 2,821 Forumite
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    bostonerimus, sicne you are a VLS man can you explain why all four equity/bond combinations returned between 10.5% and 11.5% in 2015/16? Looking at a couple of L&G global trackers they returned c.17% on equity and c.5% on bonds, so how do the numbers add up?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    aroominyork wrote: »
    bostonerimus, sicne you are a VLS man can you explain why all four equity/bond combinations returned between 10.5% and 11.5% in 2015/16? Looking at a couple of L&G global trackers they returned c.17% on equity and c.5% on bonds, so how do the numbers add up?

    I'm not really a VLS man......I use individual indexes.

    Look at the underlying assets of these funds and the reasons for their relative returns will be apparent. It's often informative to look at the relative returns over longer times scales as well. What L&G funds are you looking at.....we need to make sure we are comparing like to like or we take account of different assets and amounts of risk.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    bostonerimus wrote: »
    I'm not really a VLS man......I use individual indexes.

    Look at the underlying assets of these funds and the reasons for their relative returns will be apparent. It's often informative to look at the relative returns over longer times scales as well. What L&G funds are you looking at.....we need to make sure we are comparing like to like or we take account of different assets and amounts of risk.

    You have obviously been a seasoned investor for a number of years.

    Is there any reason you have picked the last couple of months to share your wisdom with this particular forum.

    I would have thought US forums would be the obvious place to share your thoughts?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 7 July 2017 at 6:47PM
    TBC15 wrote: »
    You have obviously been a seasoned investor for a number of years.

    Is there any reason you have picked the last couple of months to share your wisdom with this particular forum.

    I would have thought US forums would be the obvious place to share your thoughts?

    I've been investing for 30 years, whether that makes me "seasoned" or worth listening to over anyone else is debatable. I do have strong opinions though based on what's succeeded for me.

    I've been on some US forums and I hadn't really bothered about the UK. But I was looking into retiring back to the UK and did some research......that coupled with all the news in the UK press about the pension changes got me interested in how things are done in the UK. Frankly I was shocked at the fees and the lack of strong DIY and investor voices.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • username12345678
    username12345678 Posts: 283 Forumite
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    The link is for Brewin Dolphin's guide to understanding your appetite for risk along with a suggested portfolio and the historical performance/drawdowns for that particular mix of assets.

    It may provide a useful starting point but I should add that their clients active portfolios look nothing like the suggested ones - unsurprisingly.

    https://www.brewin.co.uk/brewin-portfolio-service/discover-your-risk-profile
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    username12345678 wrote: »
    The link is for Brewin Dolphin's guide to understanding your appetite for risk along with a suggested portfolio and the historical performance/drawdowns for that particular mix of assets.

    It may provide a useful starting point but I should add that their clients active portfolios look nothing like the suggested ones - unsurprisingly.

    https://www.brewin.co.uk/brewin-portfolio-service/discover-your-risk-profile

    In the UK people really like to use a lot of funds and slice and dice.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    bostonerimus wrote: »
    In the UK people really like to use a lot of funds and slice and dice.

    As a % of the population more of the UK holds a passport. It's a cultural thing. Not least the sheer size and scale of the US markets. Far harder to dominate than on this small Island. Why the need to look elsewhere one might say.
  • aroominyork
    aroominyork Posts: 2,821 Forumite
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    The Brewin Dolphin link is typical of an IFA’s process. The problem is that it gives you no time context – for newbies going through the process for the first time it does not frame the questions in whether your retirement (if that is what you are saving for) is ten years or forty years away. Giving the investor some basic information about the importance of the time factor and the cyclical nature of stock markets would affect how they respond. My last IFA offered six funds with none of them over c.75% equities because, they said, none of their clients wanted a higher risk. It's clear to me they were pushing people towards being risk averse as it made life easier for them (the IFAs) when markets fell. It’s like asking someone if they like wearing smart shoes without saying whether they are about to go to the beach or to a formal dinner.
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