Vanguard life strategy - return

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  • economic
    economic Posts: 3,002 Forumite
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    bostonerimus wrote: »
    what do you mean by "best"? 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. 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.

    30 years ago i was 4.

    you make your own luck with these things, gotto speculate to accumulate!
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    economic wrote: »
    30 years ago i was 4.

    you make your own luck with these things, gotto speculate to accumulate!

    It's true that past markets are not necessarily good predictors. Can you tell me the criteria you are using to control your selling and buying.....or its this luck mostly manufactured with the gut? In the accumulation phase my criteria was to keep my 60/40 equity to bond ratio stable within a +/-5% boundaries. This netted just over 8% average annual return since 1987.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • economic
    economic Posts: 3,002 Forumite
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    bostonerimus wrote: »
    It's true that past markets are not necessarily good predictors. Can you tell me the criteria you are using to control your selling and buying.....or its this luck mostly manufactured with the gut? In the accumulation phase my criteria was to keep my 60/40 equity to bond ratio stable within a +/-5% boundaries. This netted just over 8% average annual return since 1987.

    my gut instinct pretty much. i dont do much trading at all. as i said i have held my funds for 2 years now. first time i have sold them. lets see if i am right!
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    economic wrote: »
    my gut instinct pretty much. i dont do much trading at all. as i said i have held my funds for 2 years now. first time i have sold them. lets see if i am right!

    Do you have a plan for the money? Profits are nice, but it's what you do with them, and also what you do with the loses over the years that is important.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • economic
    economic Posts: 3,002 Forumite
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    bostonerimus wrote: »
    Do you have a plan for the money? Profits are nice, but it's what you do with them, and also what you do with the loses over the years that is important.

    profits are reinvested into the same or other opportunities.

    you cant do anything about losses apart from learn from them.
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    economic wrote: »
    ive been buying lifestrategy 100% version since about 2 years ago and im up 30-35%. i have recently sold to lock in the profits. will buy back in at hopefully lower levels.

    i have other various funds and single stocks which i have kept. the main reason i sold vanguard fund is that i see a gbp rally extend quite a bit which would hurt the fund quite a bit.

    Time the market, the professionals can’t do it.

    And you are?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 1 December 2017 at 8:27PM
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    economic wrote: »
    profits are reinvested into the same or other opportunities.

    But what are the criteria? Are you waiting for the price to fall and f if so by how much and over what time period, looking at momentum or inflection points? Being out of the market at the wrong times is a sure fire way to underperform
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • economic
    economic Posts: 3,002 Forumite
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    TBC15 wrote: »
    Time the market, the professionals can’t do it.

    And you are?

    thats why i dont do it usually. i have only done it once which is now after 2 years being invested.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    economic wrote: »
    thats why i dont do it usually. i have only done it once which is now after 2 years being invested.

    Once in 2 years sounds quite often. What tells you the market has peaked? and that it's the time to get out? Are you still ploughing money into pensions and ISA etc? I don't see any reason to sell equities beyond rebalancing because I don't have a crystal ball.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • economic
    economic Posts: 3,002 Forumite
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    bostonerimus wrote: »
    Once in 2 years sounds quite often. What tells you the market has peaked? and that it's the time to get out? Are you still ploughing money into pensions and ISA etc? I don't see any reason to sell equities beyond rebalancing because I don't have a crystal ball.

    all nonsense. you have no idea if the markets will have returned above inflation by the time you need access to it.

    there is always a time to buy and time to sell any market. remember that.

    that said i have bought back into the funds yesterday morning as i expected the tax bill to pass. it has passed so i am expecting markets to surge more from here.

    the reason why sold inthe first place was due to a bit of risk management. very important. just buying and holding blindly is a fools game.
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