Best time to invest in Vanguard Funds

Options
rcha
rcha Posts: 1 Newbie
First Anniversary
in Savings & investments
We have around 40k to invest in our share ISA.
We want to invest in vanguard lifestrategy60 for at least 5 to 10 years.
Current market price is high. Is it advisable to invest now or wait for the good price.
Your suggestion is much appreciate. thank you. :)
«1

Comments

  • chockydavid1983
    chockydavid1983 Posts: 713 Forumite
    First Anniversary First Post
    Options
    Time in the market over timing the market
  • ColdIron
    ColdIron Posts: 9,141 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    How long are you prepared to wait? You could wait a year and buy at an even higher price. You could buy a 10% drop after a 15% rise. You would be missing out on dividends while you wait. Maybe you could think about investing in tranches so get the average price over a few months. This could be higher than today's price or it could be lower
  • dunstonh
    dunstonh Posts: 116,534 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Current market price is high.

    Compared to what?
    Is it advisable to invest now or wait for the good price.

    So, you want to wait for it to go up 20% before investing in it?
    When is that good price going to meet your criteria?

    It may never fall below todays price ever again. It may be lower tomorrow, next week or next year.

    Lets say you get lucky and time a crash perfectly (you won't). What are you going to do in 3-24 months time when the next one comes. If you know the next one could be just 3 months away, would you take it out of the investment?

    Trying to time the market it futile as there is always a crash coming.
    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.
  • thickasabrick
    thickasabrick Posts: 172 Forumite
    First Anniversary Name Dropper First Post
    Options
    To quote from one of my favourite financial independence bloggers Mr Collins.

    I have £ xxx,xxx and want to invest. But the market is at an all time high. Wouldn’t I be better off waiting until it corrects 20%?

    Here’s the short answer:

    If you are asking this question you are not ready to invest. You don’t understand how the game works and what to expect from the ride. Until you do, stay away from the market.

    It's from this article titled "Why you should not be in the stock market"

    jlcollinsnh.com/2018/03/16/stocks-part-xxxii-why-you-should-not-be-in-the-stock-market/

    Summed up nicely by The Escape Artist in this article
    "There’s a major market crash coming…"

    theescapeartist.me/2018/01/15/theres-a-major-market-crash-coming/
  • Jeems
    Jeems Posts: 202 Forumite
    First Anniversary First Post
    Options
    Markets were higher in Jan
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    Options
    It is not advisable to time the market. In the considered words if Shia LeBeouf "Just Do It!"

    https://www.youtube.com/watch?v=10DQeSk1LaY
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • ChesterDog
    ChesterDog Posts: 1,117 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    If you had invested in the fund a couple of months ago, presumably you would now be thinking of selling?

    Should everyone who is currently invested in it be doing the same?

    Doesn't sound like a longterm approach when looked at like that, does it?
    I am one of the Dogs of the Index.
  • TBC15
    TBC15 Posts: 1,456 Forumite
    First Post First Anniversary Name Dropper
    Options
    If you must invest in VLS do it now. VLS 60 would seem to me to be a bad choice with 5-10yrs to go.
  • orlaflutter
    orlaflutter Posts: 11 Forumite
    Options
    TBC15 wrote: »
    If you must invest in VLS do it now. VLS 60 would seem to me to be a bad choice with 5-10yrs to go.

    Really? would you explain why you think so, because I was going to set this up myself for a similar period, thinking it was a good thing to do.
  • Terry_Towelling
    Terry_Towelling Posts: 2,279 Forumite
    First Anniversary Name Dropper First Post
    edited 6 July 2018 at 9:47PM
    Options
    You probably weren't expecting answers like the ones you've got.

    Are you able to invest £40K in one go in an ISA?

    Anyway, your question was perfectly reasonable on the face of it and, yes, it would be preferable to buy in when prices are low, but no one can actually say what the market will do or when. You can try looking at historical data for trends but that will only tell you what happened in the past not what will happen in the future.

    As some have intimated, the market may never go any lower than this - or it might drop like a stone tomorrow. It will likely oscillate as time goes by but the hope is that, over time, it will trend upwards. There will be slumps/crashes/surges along the way. Take a look at the FTSE All Share prices for the last 20 years - the overall direction has been upwards but just look at some of the highs and lows along the way. You just have to hold your nerve.

    Remember also that investor behaviour may cause alarming movements in the market price but the performances of the companies within your fund/portfolio will likely still be fine and you should receive useful dividend income.

    If you're going to do it, you may just as well get on with it and ride the roller-coaster. I can't comment on your choice of fund - simply because I don't know.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards