Vanguard life strategy - return
Comments
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An average fund is a fiction, what you might find is that your excellent fund pick also has a few years or the odd one or two of being not so excellent. Woodford being an obvious example.
Unless you're prepared to start trying to time the market and good luck with that, it's probably wiser to assume, since the GFC and central bank counterfeiting went ballistic that the last few years have been extraordinary for equity markets.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
catoutthebag wrote: »What funds do you think will do better? And I guess at such low returns am I best maxing out more of the highest savings, etc, peer to peer etc then?
Chasing return is a dangerous thing and will lead to poor decisions. Settle on a risk and return for your portfolio and stick to a strategy. That will help you through the periods when you lose 25% in a year.
Shopping for this year's "best" fund isn't a winning strategy. People with VLS products have a pre-made index tracker portfolio. If you want to beat those indexes then VLS is not the right thing to own.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
You have done very well as apposed to putting your cash on deposit.
You have achieved below par apparently Vs similar products. But they are not my thing.
You have performed abysmally Vs a good well picked spread of active funds.
It all boils down to how much interest you take in investing, risk profile etc etc. and your expectations.0 -
Is there any negative in doing what the other guy said...sell up when comfortably up and reivlnvest when down? That seems more active management rather than passive...if the returns are these low I'm better off with cash Isa, regular saver, easy access accounts, peer to peer etc...I may sell up and 'lock in profit':money:
I make quite a bit selling collectable...I bought 35 prints at about 300 total and sold 11 so far for 1200+0 -
It usually results in lower returns in the long run compared to remaining invested with rebalancing.Is there any negative in doing what the other guy said...sell up when comfortably up and reivlnvest when down?
You never know when the lows are going to be or when the highs are. Are you going to pull out and watch the market go up another 15% before it suffers a 10% correction and then reinvest when half that correction has already recovered?if the returns are these low I'm better off with cash Isa, regular saver, easy access accounts, peer to peer etc...I may sell up and 'lock in profit'
Where can you find savings accounts paying 5-7% pa.?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.0 -
catoutthebag wrote: »Is there any negative in doing what the other guy said...sell up when comfortably up and reivlnvest when down? That seems more active management rather than passive...if the returns are these low I'm better off with cash Isa, regular saver, easy access accounts, peer to peer etc...I may sell up and 'lock in profit':money:
I make quite a bit selling collectable...I bought 35 prints at about 300 total and sold 11 so far for 1200+
What if they sell and the funds keep going up......some gains will have been lost. Such market timing and stock/fund picking will work sometimes and other times it will fail. So if you believe you can pick the "best" funds and time the market consistently then you'd be a fool not to use active funds or actively trade. Of course pride comes before a fall.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
It usually results in lower returns in the long run compared to remaining invested with rebalancing.
You never know when the lows are going to be or when the highs are. Are you going to pull out and watch the market go up another 15% before it suffers a 10% correction and then reinvest when half that correction has already recovered?
Where can you find savings accounts paying 5-7% pa.?
You picked one example from my list. Peer to peer can pay that. And my crypotocurrency is up 30-50%. Maybe I'll take the 1250 out (a mere 10pounds a month) and see how Bitcoin do in a month, served me ok so far than all these passive, risk averse rubbish:D0 -
catoutthebag wrote: »Is there any negative in doing what the other guy said...sell up when comfortably up and reivlnvest when down? That seems more active management rather than passive...if the returns are these low I'm better off with cash Isa, regular saver, easy access accounts, peer to peer etc...I may sell up and 'lock in profit':money:
I make quite a bit selling collectable...I bought 35 prints at about 300 total and sold 11 so far for 1200+
thats what im doing. had a great run up and made quite a bit. best to lock in those profits and wait for a better opportunity.0 -
catoutthebag wrote: »Hi I opened my vls 60 via Charles Stanley direct 2 and a half years ago with 1000 pounds. It's up about 25% since with dividends reinvested.
Would you this be considered a good return, so far?catoutthebag wrote: »You picked one example from my list. Peer to peer can pay that. And my crypotocurrency is up 30-50%. Maybe I'll take the 1250 out (a mere 10pounds a month) and see how Bitcoin do in a month, served me ok so far than all these passive, risk averse rubbish:D
Hi,
My view would be that on £1000 you've done just fine. I would not worry about slight differences in return over such a short time period. For that amount of money imo you should just pick one global passive fund and be done with it. No point in chasing outperformance from a portfolio of specific active funds.
Also congratulations on the cryptocurrency returns. If you are willing to take on the risk/reward/rollercoaster of bitcoin then I think you should consider a 100% equities allocation for your £1250 in VLS60. Just my thoughts.0 -
thats what im doing. had a great run up and made quite a bit. best to lock in those profits and wait for a better opportunity.
what do you mean by "better opportunity"? Rebalancing back to your target asset allocation if it deviates by some set amount maintains the risk profile of your portfolio. I think that's a useful tool, but whether it is "best" depends on the criteria you set. Do you have a price when you will get back in, or are you going to buy into "better value stocks"? If you had simply been 100% in S&P500 for the last 30 years and done absolutely nothing you would have seen a 10.3% annual average gain. I doubt market timing would have given better results for most people.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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