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  • FIRST POST
    • JustAnotherSaver
    • By JustAnotherSaver 15th May 19, 10:44 AM
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    JustAnotherSaver
    Is 'Vanguard LifeStrategy' enough in your portfolio?
    • #1
    • 15th May 19, 10:44 AM
    Is 'Vanguard LifeStrategy' enough in your portfolio? 15th May 19 at 10:44 AM
    Some of you may remember me as the clueless investor. Others may have joined since i last posted about retirement so if you haven't seen me around before then hi i'm the clueless investor In that i don't pretend to know a lot about this & jargon makes my eyes glaze over.


    On that note - i set up a SIPP with Cavendish a year or two ago, opted for one of the LifeStrategy funds as a subscribe-&-forget policy & then with everything else going on in life my reading on retirement went on the back burner for a good while. I opted for a subscribe-&-forget approach because i simply A) don't know enough and B) am not confident enough to go shuffling/rebalancing my portfolio, so until that time....


    NOTE: I know i mention LifeStrategy but really this question could apply to any fund-of-fund that's similar. I just named LifeStrategy as it appears to be the 'biggie' that everyone mentions.



    Anyway so i was reading a little recently regards returns on investments & this piece said about how LifeStrategy funds are fairly solid but they're nowhere near market leading (not that i thought they would be).
    It mentioned/suggested adding in some managed funds which from what i've previously read historically does not to as well as passive investing/index tracking over the long term (& therefore for someone who is looking at a 30+ year timeframe, i wondered why you'd want to do that).


    Now obviously everyone wants to buy the gold fund that is the lowest of the low and sell at the point when it's at the highest high, but nobody has a crystal ball. Likewise i understand that nobody can really say - yes LifeStrategy (or similar) WILL (or WONT) build you a huge pension pot that you can retire comfortably on as there's so many variables.


    But for anyone who's still kept with this post, in your own personal opinion, would you be happy to have one of these funds (or similar - not necessarily Vanguard's) as the solitary investment in your portfolio?






    Also to save me creating a separate thread on it - at what point would you consider an IFA (if you'd consider one at all)?
    I first started at 28 with £100pm. Nothing really but it was all i could afford at the time. I went with an IFA and after asking & reading on this forum i learned that any gains i make would likely be eroded by fees. Essentially it was a bad decision & i should 'have a go' myself while the pot is a small amount & only when it gets much larger should i consider an IFA.
    So how big would your pot have to be to consider one?

Page 5
    • enthusiasticsaver
    • By enthusiasticsaver 19th May 19, 4:33 PM
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    enthusiasticsaver
    I don't know what DH stands for but in the context i'm getting that it's basically your other half.

    In which case i am in exactly the same boat as you.

    Yes DH is my husband and he has always left managing finances to me. He listened to my advice more than 30 years ago when he joined his company pension scheme, then a final salary one with a booster scheme for those wanting early retirement and I encouraged him to put in the most we could afford. I knew then the advantages of saving early for retirement and as my dad had recently died at a relatively young age I knew I wanted us both to have the option to retire early as my dad had no retirement to speak of. We increased the percentage gradually and at one point 30% of his salary was going into his pension. That is the sole reason we have been able to retire in our fifties as my salary and saving potential was limited due to us having children.
    I help/manage the finances of my wife, my siblings & my mother. This came about basically by me telling them just leaving everything in 1 bank account & 'staying loyal' to a bank wasn't doing them any good. Their response was could you do it for us. As i love to be able to help i said no problem.

    They have no desire to learn these things because they have no interest in it. I know the response on here would be 1) yeah but i bet they're happy to pick up the interest though (yes, of course they are, who wouldn't be) 2) show them how to do it themselves (like i just said they have no interest to do that) 3) well just don't do it and let them deal with it themselves (like i said, i get enjoyment out of helping others when i can).
    There's also other reasons for helping too. My wife - we're a team at the end of the day. My financial situation impacts hers as does hers mine. It's in both our interests for us to be at our best. My brother & sister - i don't want to see them making the mistakes i did & starting late in life. My mother - had my dad do everything for her as far as the money went & now he's no longer here she's on her own.

    I agree with you that managing your wife's affairs makes sense as you are a team and I also look after my mums as she thinks I am the most financially astute out of her children and as I say my dad died relatively young so she has needed some support over the years.

    Exactly. So long as i can be on track to retire at a decent age and be comfortable in retirement then i'm good. I don't really want to be working in to my 70s. I don't factor in the workplace pension in any calculations because my contributions to that are minimal (about £75-£80pm) and i treat it as a bonus to what i see as my pension - my SIPP.


    Originally posted by JustAnotherSaver
    The only answer I would give to your last statement is don't underestimate your company pension scheme. Obviously your SIPP will have the same tax advantages as your company scheme but are you maximising the employers contribution? Presumably it is a DC pot as most are these days but usually your employer will match your contribution so upping it may be worthwhile. Depends on terms of the scheme though.

    I get the impression you are still relatively young so you are doing all the right things in saving for retirement presumably with a higher equity level than us ( VLS 80 or 100?) I did a spreadsheet for all our income streams in retirement and luckily for us underestimated the value of compound returns so in fact we could have retired several years earlier and have ended up more comfortable than we needed to be. Are you also using stocks and shares isas just in case the pension rules change on when you can access your SIPP?

    Well done on giving this your attention from relatively young. I have tried to drum the same message into our daughters and son in law and they are taking it on board.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • JustAnotherSaver
    • By JustAnotherSaver 19th May 19, 6:57 PM
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    JustAnotherSaver
    I get the impression you are still relatively young so you are doing all the right things in saving for retirement presumably with a higher equity level than us ( VLS 80 or 100?) I did a spreadsheet for all our income streams in retirement and luckily for us underestimated the value of compound returns so in fact we could have retired several years earlier and have ended up more comfortable than we needed to be. Are you also using stocks and shares isas just in case the pension rules change on when you can access your SIPP?

    Well done on giving this your attention from relatively young. I have tried to drum the same message into our daughters and son in law and they are taking it on board.
    Originally posted by enthusiasticsaver
    I'm now in my mid 30s. Young to some, starting to get on a bit as far as others are concerned.



    I started out with the attitude in my teens of 'pensions are for old people'. That's all i ever knew it was - old people 'get their pension' and to my green eyes you just got to an age and then stopped working & that was that. I didn't think much beyond it.
    Then as i got older the turning point was having about £15k in my Nationwide current account. I'd always picked up interest but this year there was £0.00. I messaged them - hey what's going on with my interest? I then learned about changes in T&Cs which angered me enough to find this forum & learn about not being loyal to a bank but searching for the best rates.


    Then it got addictive.


    I pushed & pushed, switching accounts, opening credit cards & using them wisely. This was with the goal to get as much money for a house deposit as i could. At age 28 i knew i had to do 'something' for retirement so saw an IFA and started a S&S ISA with £100pm. It was 'a start'.
    I bought my house aged 30 and was able to put down about £45k of my own money (plus £10k wife had saved) on a 160k house. I did this on a job of only about £14k-£16k per year and having had a lot of time off sick at one point.


    I earn around £1600net give or take and put around £280pm (including workplace) in to retirement (i'm not one of these who shy away from giving actual figures, especially as at the end of the day none of us know each other anyway). I'd do more if i could afford it.




    As for ISAs, no not really. I opened a LISA just so that i had that option but the feedback i got from here was that pensions are really the best bet for me, so that's what i put my money in to.
    Last edited by JustAnotherSaver; 19-05-2019 at 6:59 PM.

    • JustAnotherSaver
    • By JustAnotherSaver 19th May 19, 7:44 PM
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    JustAnotherSaver
    Getting back on to the topic of a lack of understanding.

    Take the VLS80 as the example: https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-80-equity-accumulation/fund-analysis


    When i was looking at all of this i was looking at a bit of diversification, investing globally. That's what my reading had lead me to believe was going to give me the better return over the long haul.


    So imagine my surprise (although i really shouldn't be by now) when i come on here & see folk mentioning VLS is heavily UK weighted.

    But it can't be i thought - it has "58% international equities" - that's over half so how is that heavily weighted to the UK?


    So wanting to try and figure it out for myself i click a bit more https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-80-equity-accumulation/fund-analysis/geographical-analysis 35% north america, 24% UK, 18% europe, 7% Japan, so on & so forth.


    And i'm thinking then - is 24% considered high? It must be i suppose. If you're wanting a good global spread then what percentages do you really not want to be going beyond?

    • JustAnotherSaver
    • By JustAnotherSaver 19th May 19, 9:50 PM
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    JustAnotherSaver
    I don't want to risk asking too much at once but at the same time i know what i'm like & i'll forget to ask...


    Back when i was 28 & we started investing via an IFA, he asked us some questions which at the time determined my wife was a little less comfortable than me in terms of risk. We went back after a couple years for a re-evaluation and she'd changed her viewpoint to be much closer to mine.

    He still suggested that one of our portfolios remained higher risk where the other was lower risk, to create balance.


    Bearing that in mind, for those of you in relationships where your outlook is similar, how do you handle your investments? You don't both invest in the same funds do you? Or do you?


    For the record my wife holds VLS80 and HSBC Global Strategy Dynamic and splits her monthly subscription 50/50 via Cavendish Online.

    • bostonerimus
    • By bostonerimus 19th May 19, 10:49 PM
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    bostonerimus
    I agree whole heartedly with this and we are in a similar position to you with DB pensions covering the majority if not all of our living expenses so we can afford to be a little complacent with our investments and hold a little too much in cash. The investments tick along and I don't need to worry too much about them. The IFA we are seeing at the moment is a financial life planner. He tells us essentially how much we can spend annually and where from or if we will run out of money and has obviously more extensive investment and tax knowledge. He is not cheap though.

    He says our affairs are too complicated and he can help simplify it but I would not necessarily agree with that but as I say we have yet to see his recommendations. We have one DB pension each paying out at the moment and one further one due to kick in early next year for me. I have a SIPP and DH has a DC pot with links to his DB pension due to AVCs and protected rights. We both have a stocks and shares ISA each invested wholly into Vanguard LS60 as is my SIPP. My DHs DC pot is invested in his old company occupational scheme and is already crystallised as his TFLS came from there. We have an interest bearing current account and an internet saver for our cash. Both of us will have full state pensions within the next seven years. Is that unnecessarily complicated?
    Originally posted by enthusiasticsaver
    Your affairs sound relatively simple....and very similar to mine. If you are like me and can live on pensions then you can take a bit of risk with the DC and other money. I've let my allocation rise to 80% equites and just 20% bonds as I'm not really investing for income, more for capital growth. I also like to keep a substantial amount of cash on hand for big expenses, this year I have to have the house painted and that will all come out of the cash account.

    One area that can get complicated is taxation and inheritance so you might want to see what your IFA thinks about that. If all they tell you is to move some money into other funds and that they will manage your money for an annual fee then I don't think they are giving much value. But if they want to limit your current and future taxes, then they might be at least worth listening to.
    Misanthrope in search of similar for mutual loathing
    • crv1963
    • By crv1963 20th May 19, 8:24 AM
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    crv1963
    I'm now in my mid 30s. Young to some, starting to get on a bit as far as others are concerned.

    As for ISAs, no not really. I opened a LISA just so that i had that option but the feedback i got from here was that pensions are really the best bet for me, so that's what i put my money in to.
    Originally posted by JustAnotherSaver
    I think given net earnings you are doing well. I agree that Pension Saving is attractive but think you are missing the boat with ISA and LISA. The purpose of them as has been suggested for you is to add options. They given an option to retire before you can access your SIPP in the event of there being a rule change to make people wait longer to enter draw down/ access SIPP pensions.

    One tip I would suggest is to consider "rounding up" your mortgage payment to the nearest whole number, we pay 600 pm instead of 593 pm, a colleague pays 350 pm instead of 338. It doesn't cause much pain financially but over the years can have a big effect in knocking time in payment off of it.

    Do you balance pension contributions? I got divorced and the court simply added the CETV of the pensions together and divided it by two. Transferred 140k from my pot to the oppositions.

    Now with Mrs CRV we again have an imbalance, her pot is much less valuable than mine so in our mid 50s (me), early 50s (her) we are trying to pour as much into her SIPP as we can with the aims of-

    1) Reducing joint tax bill in retirement- she can then draw up to PA limit annually, reducing draw down when SP starts to stay within PA.
    2) Build a pot so that when I go first she still has a decent pension income of her draw down, her SP and her survivors pension from my DB pension.

    We also plan on me starting a SIPP or workplace AVC as it is likely I may start at 40% tax rate this year due to overtime and shift allowances, so probably enough to get back to BR payer level. This will have two aims- either create a pot to be used if care home fees/ personal care enters our life in later life or as a further pot of money for Mrs CRV to draw against or leave to our heirs.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • JustAnotherSaver
    • By JustAnotherSaver 20th May 19, 10:06 AM
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    JustAnotherSaver
    I think given net earnings you are doing well. I agree that Pension Saving is attractive but think you are missing the boat with ISA and LISA. The purpose of them as has been suggested for you is to add options. They given an option to retire before you can access your SIPP in the event of there being a rule change to make people wait longer to enter draw down/ access SIPP pensions.
    Originally posted by crv1963
    But as far as i'm aware you can access your SIPP from age 55? LISA from 60 (subject to change of course). So you actually have to wait longer the the LISA. a standard S&S ISA would be a bit of a bad move in my view as there's no 25% bump.

    One tip I would suggest is to consider "rounding up" your mortgage payment to the nearest whole number, we pay 600 pm instead of 593 pm, a colleague pays 350 pm instead of 338. It doesn't cause much pain financially but over the years can have a big effect in knocking time in payment off of it.
    What i currently do is that i was paying something like £450pm and after the first 5 years passed i'm now paying say £390 per month.
    I was already contributing to an 'emergency fund' of minimum 3 months wages (i go for wages rather than bills as wages is greater so in the event of an emergency i'll be better off than had i only done bills).
    That £60 that i've 'saved' through the mortgage renewal goes towards the emergency savings as does any interest my accounts generate.

    Once i hit 3 months, which should take me a further 12-14 months of saving, i will reduce the contribution amount and slowly work towards 6 months and perhaps stopping at 12 months.


    We took our mortgage over 30 years rather than 25 so as to get the monthly payment down. We're on a 5 year fixed once again. The reason i haven't put more towards it is 1) the emergency savings needs completing 2) our regular savings need building up 3) Our retirement pot is small due to how late we started.


    Do you balance pension contributions? I got divorced and the court simply added the CETV of the pensions together and divided it by two. Transferred 140k from my pot to the oppositions.
    No but it soon will be as my wife has been given a rise and she will be getting promoted in the near future which will enable this. She doesn't contribute a whole lot less than me at the moment anyway.

    or leave to our heirs.
    Unfortunately/fortunately (depending on how we look at it) we don't have any of those and it's now highly likely that we wont, which creates freedom & worry but such is life.

    • crv1963
    • By crv1963 20th May 19, 11:08 AM
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    crv1963
    At the moment you have to wait longer to access the LISA over the SIPP but the general direction for the SIPP is for it to be made later in life. I agree get as much free cash as possible, and for us with no access to a LISA a pension is the best thing.

    I think you are doing well looking at all this, although you say late in life it is all relative, I didn't really take a hard look at it until I hit 53, although I knew I had a reasonable personal pension provision.

    Try looking at when you want to retire and with what income, we looked at base needs, would like needs and luxury income needs, reaching 3 figures, aiming for luxury but will be content to reach would like income needs. Time versus money, we exchange time for money but there will be a point when time becomes more valuable to us than money.

    No one knows their end point, so you can only plan with an optimistic view point - unless you know for definite otherwise.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • Mordko
    • By Mordko 20th May 19, 11:36 AM
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    Mordko
    And i'm thinking then - is 24% considered high? It must be i suppose. If you're wanting a good global spread then what percentages do you really not want to be going beyond?
    It’s fine. 24% is overweight in the Uk, given Britain’s market cap in the world stocks (6%?) You have plenty diversification regardless. Being somewhat overweight in the home market is considered to be justified. https://personal.vanguard.com/pdf/icrrhb.pdf
    • JustAnotherSaver
    • By JustAnotherSaver 20th May 19, 12:18 PM
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    JustAnotherSaver
    Try looking at when you want to retire and with what income, we looked at base needs, would like needs and luxury income needs, reaching 3 figures, aiming for luxury but will be content to reach would like income needs. Time versus money, we exchange time for money but there will be a point when time becomes more valuable to us than money.
    Originally posted by crv1963
    My answer to this tends to upset people for 2 reasons.
    The initial answer is "ASAP" which doesn't tie in with giving an actual figure.
    My reasoning is because working life isn't for me. Or at least 5-6 days of 10 hour days isn't for me i know that much.



    It upsets my wife when i say working life isn't for me. She bites back - "well everyone has to work". Well technically not true (but i get her point). I never said i wont work though. I do it because i know i have to in order to live. I just don't see the enjoyment in getting up at 5:30am ready for work to come home at (at the very earliest!) 6:00pm mostly 6 days per week, BUT it's the situation i'm in so i deal with it. The moment i no longer have to do that then i wont but that's getting into off topic realms.




    I have great concern about how much is needed in retirement not least because of my dads situation. He saved in to a pension all his life. He became a pensions officer at his final company which he was with for 25-30 years IIRC. Would go on regular meetings regards pensions and would pay in AVCs i think he called it at the expense of having a bit less for day-to-day life.



    Got to retirement (65), had 3 years of poor health & then died.



    Obviously he didn't have a crystal ball and my mother now picks up a fraction of his pension (made less due to their age gap) but that's the thing - how big a pot do you aim for? How long do people 'plan' on living?


    I'm not a big earner so i don't live like a big earner, therefore i have no intension of living a luxurious lifestyle in retirement. So long as i can afford to put the heating on without worry about paying for it, i can feed myself, i can take up a few free or cheap hobbies and can have the odd holiday or so per year (we holiday within the UK really though that may or may not change) then i'm good. I don't need a flashy car, a months holiday every 4 months in the Bahamas, so on & so forth.


    Darn. What was i saying about off topic

    • Thrugelmir
    • By Thrugelmir 20th May 19, 5:24 PM
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    Thrugelmir
    My answer to this tends to upset people for 2 reasons.
    The initial answer is "ASAP" which doesn't tie in with giving an actual figure.
    My reasoning is because working life isn't for me. Or at least 5-6 days of 10 hour days isn't for me i know that much.
    Originally posted by JustAnotherSaver
    Make hay while the sun shines. You have no idea what the future may hold. Focus on today and tomorrow. Let the distant future take care of itself. For many there's no control of what may unfold.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • JustAnotherSaver
    • By JustAnotherSaver 20th May 19, 7:59 PM
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    JustAnotherSaver
    Make hay while the sun shines. You have no idea what the future may hold. Focus on today and tomorrow. Let the distant future take care of itself. For many there's no control of what may unfold.
    Originally posted by Thrugelmir
    It's about getting the balance, not killing yourself.


    My boss thinks like a farmer. If your eyes are open then you should be working. Heard that Rhianna song? Yeah something like that. Workworkworkworkwork. But where's the down time? Oh 20 days per year i forgot, or rather 28.


    Like i say, i'm well aware it's a fact we need to work so i do it. I'm not a bum who sits on the sofa & says i don't want to work therefore i wont work & i'll scrounge some benefits. I do 60+ hour weeks & it'll be that way whether i like it or not until such a time where i can financially afford not to.

    • Thrugelmir
    • By Thrugelmir 20th May 19, 9:11 PM
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    Thrugelmir
    It's about getting the balance, not killing yourself.

    Originally posted by JustAnotherSaver
    In later life you may appreciate the hay that you've already stored in the barn. At some point you may be on the way down the career ladder whether you want to be or not.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • JustAnotherSaver
    • By JustAnotherSaver 20th May 19, 10:15 PM
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    JustAnotherSaver
    In later life you may appreciate the hay that you've already stored in the barn. At some point you may be on the way down the career ladder whether you want to be or not.
    Originally posted by Thrugelmir
    Very true.
    Yet life is for living. What is the point in life if you cannot find enjoyment? Sure that hay may make your coffin nice & warm but you'll be dead so wont appreciate it.


    Like what i said regards investing earlier - i'm not chasing the top returns at all times. I'm quite happy being steady, providing it'll provide. My view on work is the same. Living to work is a mentality i'll never wrap my head around. It's a strange mentality that outside of company owners i would say few think that way. I know a few that work, get home, eat, shower, sleep & repeat for 6 day weeks. Each of them are miserable and are looking to get out of the rut. Yet at the same time being reckless in life and not thinking about tomorrow is just as stupid. Like i said, it's about finding the balance.

    • enthusiasticsaver
    • By enthusiasticsaver 21st May 19, 9:46 PM
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    enthusiasticsaver




    I have great concern about how much is needed in retirement not least because of my dads situation. He saved in to a pension all his life. He became a pensions officer at his final company which he was with for 25-30 years IIRC. Would go on regular meetings regards pensions and would pay in AVCs i think he called it at the expense of having a bit less for day-to-day life.



    Got to retirement (65), had 3 years of poor health & then died.



    Obviously he didn't have a crystal ball and my mother now picks up a fraction of his pension (made less due to their age gap) but that's the thing - how big a pot do you aim for? How long do people 'plan' on living?


    I'm not a big earner so i don't live like a big earner, therefore i have no intension of living a luxurious lifestyle in retirement. So long as i can afford to put the heating on without worry about paying for it, i can feed myself, i can take up a few free or cheap hobbies and can have the odd holiday or so per year (we holiday within the UK really though that may or may not change) then i'm good. I don't need a flashy car, a months holiday every 4 months in the Bahamas, so on & so forth.


    Darn. What was i saying about off topic
    Originally posted by JustAnotherSaver

    Your words rang true for me too. My Dad at 62 had just gone part time consultancy when he died but had been suffering with his health for some time. We all said why did he not retire earlier but he loved his job but it took a toll on his health and he had no retirement. He left my mum very well off though so she has never had to worry about money but I am sure she would rather they enjoyed retirement together.

    I determined first of all never to give my life and soul to a job so it jeopardised my health and to plan for my DH and myself to be financially independent asap so we did not have to work if we did not want to. My DH did a job involving long hours like yourself (6am starts and sometimes 11pm finishes, no regular hours) and masses of travelling. When he was in his mid twenties and started with what was to be his long term employer we determined on the booster scheme for him to give him the option to retire early. We should have given my pension arrangements the same attention but due to children (spanner in the works) and me working part time I left it longer than I should have.


    Keep focussed on your plans, which seem good given your age and income but I would also say don't forget to live today while planning for the future. No one knows what is around the corner.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • JustAnotherSaver
    • By JustAnotherSaver 22nd May 19, 8:33 AM
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    JustAnotherSaver
    Am interested to know what Dunstonh advises regards couples investing for retirement (or indeed anyone but since Dunstonh has a customer base this time i am specifically naming him for a reason).


    I mentioned it earlier - where at the very start when we got going with this, our IFA at the time advised my portfolio taking one approach (bit more adventurous) and then my wife's taking a different approach (bit more conservative) to add balance.


    So take a married couple as example - similar ages (there's only 1 year between my wife and I) with similar or for arguments sake, identical outlooks on investing.


    When starting my wife's SIPP we couldn't decide between the Vanguard LifeStrategy 80 and the HSBC Global Strategy Dynamic so we went on a 50/50 split with both for her portfolio.
    Now i know this is probably where Dunstonh will say that these funds are a million miles apart, like going 100% equities vs 100% bonds so they're a total non-comparison but we thought they were at least similar so that's what her portfolio is made up of.


    Now in this scenario, do you generally advise your customer base the same approach (in this case for me - the other half) or would you specifically advise different funds entirely, perhaps even with a totally different risk level?


    I can see both sides of it. I can see why the IFA i originally saw did it and i can see those who say there's no guarantee you'll remain together which i guess is also true.


    Just wondered about other peoples views.





    Keep focussed on your plans, which seem good given your age and income but I would also say don't forget to live today while planning for the future. No one knows what is around the corner.
    Originally posted by enthusiasticsaver
    Very true. After discussion with my wife in recent years about the possibility (or not) of kids, we decided that if we weren't having any then we're going to get out and do more things. More travelling, so on & so forth.

    The spanner in the works for us appears to be the house (repairs). It's impacting on building the emergency fund at a quicker rate (although i'm not overly concerned about that at the moment as 12-14 months i'll have hit my base target), it's impacting on the standard everyday type savings. retirement contributions and also mortgage overpayments (at the start my ideal goal was to overpay - 6 years in & i haven't managed a single payment yet).
    Still, we'll continue to build all the mentioned pots slowly & hopefully all comes good in the end.

    • Linton
    • By Linton 22nd May 19, 10:04 AM
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    Linton
    ......

    I have great concern about how much is needed in retirement not least because of my dads situation. He saved in to a pension all his life. He became a pensions officer at his final company which he was with for 25-30 years IIRC. Would go on regular meetings regards pensions and would pay in AVCs i think he called it at the expense of having a bit less for day-to-day life.

    Got to retirement (65), had 3 years of poor health & then died.

    Obviously he didn't have a crystal ball and my mother now picks up a fraction of his pension (made less due to their age gap) but that's the thing - how big a pot do you aim for? How long do people 'plan' on living?
    ......
    Originally posted by JustAnotherSaver

    I believe this is a dangerous way of looking at the situation. The ONS life predictions show that currently about 3.5% of the population reaching 65 can be expected to die within 3 years, a figure that is decreasing over time. Sadly your father drew the short straw. Unless you have a good reason to believe otherwise it is about as likely that you will live to be 100, a figure which is increasing.


    Another reason for planning for a long life is that the worst outcome in my view is that you get it and live your final years in poverty. Furthermore, if you plan for a long retirement but happen to die early you wont be in a position to regret your decision. On the other hand if you spend too much of your money whilst comparatively young you may have many years regretting the money you wasted on barely remembered luxuries.


    But of course you cant neglect your current life to save all your money for later when even if you do live to a 100+ you wont have time to spend it.


    In my view the best compromise is to plan to maintain the same standard of living throughout a long life. Saving more whilst working will decrease your current standard of living but increase it during retirement and saving less will do the reverse. So get the balance about even .


    As to how long to plan for: I use 90 purely because of the limitations of the my planning tool (MS Money Lifetime Planner). However it doesnt matter much, though I would prefer 95. To last 30 years and still leave a healthy balance for safety the plan must be fairly close to sustainable. A few extra years of life beyond 90-95 is well within the bounds of accuracy of the plans you make, especially as a plan should be over-cautious - you probably dont want a 50% chance of failure.
    Last edited by Linton; 22-05-2019 at 10:14 AM.
    • JustAnotherSaver
    • By JustAnotherSaver 22nd May 19, 2:07 PM
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    JustAnotherSaver
    I believe this is a dangerous way of looking at the situation. The ONS life predictions show that currently about 3.5% of the population reaching 65 can be expected to die within 3 years, a figure that is decreasing over time. Sadly your father drew the short straw. Unless you have a good reason to believe otherwise it is about as likely that you will live to be 100, a figure which is increasing.
    Originally posted by Linton
    I have no real reason for believing anything. I just look at what's happened in the past.
    My dad, at 68 was as far as i'm aware only beaten by 1 in his family who lived until 72 thereabouts. The rest died much much earlier. 20s, 40s, 50s. I'm not just talking about parents & siblings either. Spending time & going back to 1792 doing family trees is addicting & what you find out is quite interesting.

    My mother's side isn't as consistent. Some live long, others certainly don't.



    So where does that leave me? Well i'm not convinced of anything. The way i've been unlucky in health i'll probably not set any records but i go by the 'you-never-know' ruling, better to be safe than sorry.



    As to how long to plan for: I use 90 purely because of the limitations of the my planning tool (MS Money Lifetime Planner). However it doesnt matter much, though I would prefer 95. To last 30 years and still leave a healthy balance for safety the plan must be fairly close to sustainable. A few extra years of life beyond 90-95 is well within the bounds of accuracy of the plans you make, especially as a plan should be over-cautious - you probably dont want a 50% chance of failure.
    Exactly my thought process. That's why earlier i said i don't particularly count my auto-enrolment pot. Sure i know it gets built (slowly) but i pay it no mind. My SIPP is what i count on so that when i do come to retirement, the auto-enrolment pot will be a sort of 'bonus' if you will. My investments may not be overly cautious but my planning is.

    • Thrugelmir
    • By Thrugelmir 22nd May 19, 4:41 PM
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    Thrugelmir
    I have no real reason for believing anything. I just look at what's happened in the past.
    My dad, at 68 was as far as i'm aware only beaten by 1 in his family who lived until 72 thereabouts. The rest died much much earlier. 20s, 40s, 50s. I'm not just talking about parents & siblings either. Spending time & going back to 1792 doing family trees is addicting & what you find out is quite interesting.
    Originally posted by JustAnotherSaver
    As my partner puts it to me. People not so long ago went to hospital and died. Now the odds are that there'll be treatment to extend your life span. Of course if you don't take care of your body then life expectancy will be shortened. We all can make choices.

    After years of inactivity sitting behind a desk. I now walk 60 miles a week. The benefits needless to say have been considerable. Not just in body but in mind too.
    “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
    • JustAnotherSaver
    • By JustAnotherSaver 22nd May 19, 7:10 PM
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    JustAnotherSaver
    We all can make choices.
    Originally posted by Thrugelmir
    Precisely.
    There's a number of heart related problems on both sides of my family through quite a few people.


    So on that note i'm a strong anti-smoker, i barely drink and i do a lot of cardio work
    Sure it wont make me immune to any heart issues but you do what you can & the rest of it is in the hands of the gods.

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