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Results: Are you currently invested with Vanguard Life Strategy

Yes

47.02% • 347 votes

No

15.72% • 116 votes

No, but I would like to at some point

30.89% • 228 votes

There are better options than Vanguard

6.37% • 47 votes

You may not vote on this poll

738 votes in total.

  • FIRST POST
    • Carpi09
    • By Carpi09 15th Jan 13, 6:37 PM
    • 294Posts
    • 267Thanks
    Carpi09
    Vanguard Life Strategy
    • #1
    • 15th Jan 13, 6:37 PM
    Vanguard Life Strategy 15th Jan 13 at 6:37 PM
    Hello all,

    This thread was created to talk about the Vanguard Life Strategy fund which includes the 20/40/60/80 & 100. Please tell us what you think about the VLS and how you believe it would act as a core within a portfolio.

    Please be aware that investments can go up as well as down so unless you are planning to invest for several years, I don't recommend investing with S&S. From what I know and have researched the ideal time scales each of the LS funds are as follows:

    20: 3-5 years +
    40: 5 years +
    60: 5 years +
    80: 5-8 years +
    100: 10 years +

    These may well not be accurate and are a rough guide. Please be aware, if you are close to retirement or thinking about closing a fund, think about your risk attitude and what you can do in order to lessen the chance of a great fall.

    You can also suggest other funds outside Vanguard that would work well with the VLS in order to evaluate the balance of the portfolio.

    About me, Im 23 and planning early for my future. I intend to hold this fund for 20 years plus so fluctuations are bound to happen. Heavy drops will not effect me because i know values fall aswell as rise. I dont want to fall in to the trap that most people do which is to buy high and sell low because they panic.

    Currently I hold the Vanguard Life Strategy 80% with Hargreaves Lansdown and plan to put 50% of the ISA allowance into it each year. The other 50% will be put into a Cash ISA because I am saving up for a house deposit. Come April, I will be looking at adding other funds because I want more than just a passive approach and while I am still young, I would like to take the risk for greater gains.

    From all the research I have done, the VLS fund is perfect for a beginner because it does everything for you. Depending how the market is doing, it does the rebalancing for you. Having researched for around a month now and taking opinions from people on this board, I believe I have developed knowledge allowing me to move on a little and look for other funds to support the VLS fund. I still believe I am a beginner and will not rush into anything without researching and planning first.

    Please comment, suggest, discuss this fund and what experience you have had this far. Hopefully this thread will give confidence to people who were in the position I was, brand new to S&S and not a clue what anything meant. Taking the time to do a little research will not only improve confidence but improve knowledge too!

    I am sure there are plenty of books to read but one I have read recently is by Tim Hale called Smarter Investing. It is a great read and gives you all the information you need to start investing.

    Good luck!

    This opening post has been edited to give a tad more information and why this thread was created. All replies from other members from the start has been fantastic so thank you.

    MSE Insert:

    If you're new to saving for retirement read our Pension need-to-knows
    Last edited by MSE Andrea; 26-01-2016 at 9:40 AM. Reason: Improve opening post.
Page 80
    • Alexland
    • By Alexland 4th Oct 17, 9:46 PM
    • 2,748 Posts
    • 2,092 Thanks
    Alexland
    @ElizabethJane having seem your other thread where you are considering switching from Fundsmith to VLS the most comparible fund is VLS100 and the performance data can be seen at:

    https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-100-equity-fund-accumulation-shares

    VLS is much more diversified than Fundsmith which is highly concentrated and choosing your fund going forwards is more than simply comparing historic performance.
    Last edited by Alexland; 04-10-2017 at 9:52 PM.
    • SoozyJ22
    • By SoozyJ22 21st Oct 17, 2:45 PM
    • 3,048 Posts
    • 21,696 Thanks
    SoozyJ22
    Hi all. I'm looking to invest in the VLS60 with a small lump sum (maybe 5k). I've already maxed out my ISA this year but would it be easy to move that investment into a S&S ISA next year and then drip feed a monthly amount on top? It's my first time investing so I'm still getting my head round a lot of things. Thank you.
    • bowlhead99
    • By bowlhead99 22nd Oct 17, 9:08 AM
    • 8,095 Posts
    • 14,754 Thanks
    bowlhead99
    Hi all. I'm looking to invest in the VLS60 with a small lump sum (maybe 5k). I've already maxed out my ISA this year but would it be easy to move that investment into a S&S ISA next year and then drip feed a monthly amount on top? It's my first time investing so I'm still getting my head round a lot of things. Thank you.
    Originally posted by SoozyJ22
    You can't literally move a fund into an ISA because ISA subscriptions must be made in cash. So what you have to do is put cash into the S&S ISA and then use the cash inside your new ISA to buy the fund again, now inside the ISA 'wrapper'.

    Some providers advertise a process called 'Bed and ISA' which is an idiom that doesn't make a lot of sense to someone who hasn't already heard the term 'Bed and Breakfasting' in relation to shares. The latter involves selling your shares one night and buying them back again the next day. While Bed and ISA means selling the shares outside the ISA, and having the fund platform manager put the resulting cash into your ISA account and then buying again inside the ISA.

    Some providers that don't particularly advertise 'Bed and ISA' will still do it for you if you ask. Or you can just do it manually by selling from your 'unwrapped' account and then once you've got the money, using that money to make a cash subscription into your ISA account with the proceeds, The problem with doing it manually is that you can be 'out of the market' for a little while waiting for the cash to clear and then for your new subscription order to clear. The market might go up or down a bit while you are waiting. Still, with your amount of money (5k), a movement of a whole percent up or down is only 50 and is almost just as likely to be in your favour as against you.

    With a sum starting off at 5k initially, your cheapest solution for the ISA would be to open an account with https://www.vanguardinvestor.co.uk/what-we-offer/fees. They only charge 0.15% of your asset value as an annual platform/administration fee which on 5k is only 7.50 with no chargest to buy or sell shares in the fund. It's up to you whether you transfer your existing holdings into a General Account with them first and ask them to get it into an ISA Account for you, or just sell the fund with your current provider and then use the resulting cash to subscribe to an ISA account with Vanguardinvestor.co.uk and re-buy the fund of your choice.
    • JustAnotherSaver
    • By JustAnotherSaver 22nd Oct 17, 11:03 AM
    • 3,071 Posts
    • 502 Thanks
    JustAnotherSaver
    I have a VLS fund in there. The 100. The pot wont be touched for very likely another 30 years, maybe a bit more if i'm unlucky enough but certainly 30.

    Though as i work through Tim Hale's book i start to wonder whether this is too high & the 'wrong answer' for me. I know that it'll be hit by big lows when it falls, compared to say the vls 40, 60 etc and say i could have 30k in there, lose 40% & be sat at 18,000 but my thinking is that i've 30 years at this which should be time enough to recover.

    Obviously as i get to being 25, 26, 27 years in to that 30 years i'm not going to sit there still on VLS100 because i'd only have 5, 4, 3 etc years to recover so it'd be too risky for me at that point.

    But as i sit right now with 30 years minimum ahead of me i think that should be plenty time to recover from any hit.

    Though as i said, reading the book makes me doubt myself. I'm far from the most knowledgable on this so i often wonder if i've done 'the right thing'.

    • brasso
    • By brasso 22nd Oct 17, 1:44 PM
    • 722 Posts
    • 854 Thanks
    brasso
    Though as i work through Tim Hale's book i start to wonder whether this is too high & the 'wrong answer' for me. I know that it'll be hit by big lows when it falls, compared to say the vls 40, 60 etc and say i could have 30k in there, lose 40% & be sat at 18,000 but my thinking is that i've 30 years at this which should be time enough to recover.
    Originally posted by JustAnotherSaver
    No one can tell you what to do, but if it was me (and it sort of is me as I hold various Vanguard funds, including LS100), I would leave it. The idea is that the 100 will make more in good times compared to say LS60, to compensate for the bigger drops in bad times. In other words, the LS60 might drop less than the 100 but would be worth a lot less to start with.

    If there's a crash, the best thing to do could be to buy more LS100 while it's cheap.
    ----------------------------------------

    I am not an IFA!
    • Eco Miser
    • By Eco Miser 23rd Oct 17, 3:38 AM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    Obviously as i get to being 25, 26, 27 years in to that 30 years i'm not going to sit there still on VLS100 because i'd only have 5, 4, 3 etc years to recover so it'd be too risky for me at that point.
    Originally posted by JustAnotherSaver
    What are you going to do in 30 years time that means you won't have time to recover?

    When I reached that point (aged 58), I merely changed my investments to good income payers, remained fully invested and lived off the income.

    Note that whether the stock market was up or down made little difference, as both what was sold and what was bought were up (or down).
    Eco Miser
    Saving money for well over half a century
    • sebthered
    • By sebthered 24th Oct 17, 5:28 PM
    • 40 Posts
    • 24 Thanks
    sebthered
    'When I reached that point (aged 58), I merely changed my investments to good income payers, remained fully invested and lived off the income'

    This is of particular interest to me - could you elaborate.....?
    • gadgetmind
    • By gadgetmind 25th Oct 17, 10:01 AM
    • 10,830 Posts
    • 8,726 Thanks
    gadgetmind
    This is of particular interest to me - could you elaborate.....?
    Originally posted by sebthered
    I'm not the OP but I have just ordered a copy of this.

    "Living Off Your Money: The Modern Mechanics of Investing During Retirement with Stocks and Bonds"


    https://www.amazon.co.uk/gp/product/0997403403/ref=oh_aui_detailpage_o04_s00?ie=UTF8&psc=1
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • badger09
    • By badger09 25th Oct 17, 1:16 PM
    • 6,109 Posts
    • 5,479 Thanks
    badger09
    I'm not the OP but I have just ordered a copy of this.

    "Living Off Your Money: The Modern Mechanics of Investing During Retirement with Stocks and Bonds"


    https://www.amazon.co.uk/gp/product/0997403403/ref=oh_aui_detailpage_o04_s00?ie=UTF8&psc=1
    Originally posted by gadgetmind
    You bought it

    That's not very MSE. Is there no library near you gadgetmind?
    • bigadaj
    • By bigadaj 25th Oct 17, 6:55 PM
    • 10,817 Posts
    • 7,141 Thanks
    bigadaj
    You bought it

    That's not very MSE. Is there no library near you gadgetmind?
    Originally posted by badger09
    It would probably cost him more in petrol given the length of his drive.
    • Eco Miser
    • By Eco Miser 26th Oct 17, 12:03 AM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    'When I reached that point (aged 58), I merely changed my investments to good income payers, remained fully invested and lived off the income'

    This is of particular interest to me - could you elaborate.....?
    Originally posted by sebthered
    I read, in particular, the Greybeard articles on Monevator and after due consideration, and investigating other possibilities, invested in a selection of ITs and REITs, as well as keeping my existing Vanguard units for some growth.
    I thought I might have to sell some units to make up any shortfall in income, but so far that's not been necessary.

    NB what was appropriate for me then may not be appropriate for you now.
    Eco Miser
    Saving money for well over half a century
    • BananaRepublic
    • By BananaRepublic 26th Oct 17, 9:53 AM
    • 1,192 Posts
    • 874 Thanks
    BananaRepublic
    "Things can only get better" is what they said about HBOS and the Weimar Republic.

    I Googled the Greek stock market and got an article from the Torygraph's share tipster in July 2015 saying he'd bought a Greek ETF on pretty much the same logic as you. Assuming he's still got it, he's lost 25% of his money, compared to a 40% gain if he'd invested in the FTSE World over the same time period. But hey, that means the Greek stockmarket is even better value than when the Torygraph was tipping it.

    Sometimes shares crash for a very good reason, because they're crap.
    Originally posted by Malthusian
    I would not base any investment decision on an article in a newspaper, for many many reasons. Experts repeatedly predicted over a period of 20 years that the Japanese market was the place to be. Their prediction came true a few years ago, during which time money sensibly invested elsewhere would have grown many times over.
    • gadgetmind
    • By gadgetmind 26th Oct 17, 11:35 AM
    • 10,830 Posts
    • 8,726 Thanks
    gadgetmind
    You bought it

    That's not very MSE. Is there no library near you gadgetmind?
    Originally posted by badger09
    It wasn't a cheap book but I expect to get value from it. It's also not a lot in the grand scheme of things, particularly as a few things are likely to come good over the next few weeks.


    It would probably cost him more in petrol given the length of his drive.
    Originally posted by bigadaj
    Were I to go to our local library, I'd cycle there. Keeps me fit, saves money, etc.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • BananaRepublic
    • By BananaRepublic 26th Oct 17, 1:25 PM
    • 1,192 Posts
    • 874 Thanks
    BananaRepublic
    Were I to go to our local library, I'd cycle there. Keeps me fit, saves money, etc.
    Originally posted by gadgetmind
    Ah but cyclists are statistically more likely to eat lentils and beans, which of course increases the likelihood of flatulence. Do you realise that methane - a key consitutent of flatulence related emissions - is a vastly more potent greenhouse gas than carbon dioxide? So you see this is a perfect example of unintended consequences. You thought you were being virtuous but in reality you are at heart thoroughly evil. Get back in your 4 by 4.
    • Ed_Zep
    • By Ed_Zep 28th Oct 17, 6:00 PM
    • 337 Posts
    • 260 Thanks
    Ed_Zep
    I've got about 18-20 years until retirement.

    I've invested in VLS 100. I think over that term it'll do just fine, particularly because it's spread over many indices.

    There is always the "Bonkers Investment Strategy" for those feeling more speculative. Momentum investing at it's best!

    http://www.telegraph.co.uk/investing/funds/investing-formula-bonkers-method-produced-5662pc-returns-will/
    Last edited by Ed_Zep; 28-10-2017 at 6:08 PM.
    • BananaRepublic
    • By BananaRepublic 27th Nov 17, 8:29 AM
    • 1,192 Posts
    • 874 Thanks
    BananaRepublic
    I've got about 18-20 years until retirement.

    I've invested in VLS 100. I think over that term it'll do just fine, particularly because it's spread over many indices.

    There is always the "Bonkers Investment Strategy" for those feeling more speculative. Momentum investing at it's best!

    http://www.telegraph.co.uk/investing/funds/investing-formula-bonkers-method-produced-5662pc-returns-will/
    Originally posted by Ed_Zep
    If I were younger I'd be tempted to set aside 6,000 and try that approach. However, I'm a few years from early retirement, so I am taking a less adventurous approach. I wonder if anyone here is trying it?
    • BananaRepublic
    • By BananaRepublic 27th Nov 17, 8:31 AM
    • 1,192 Posts
    • 874 Thanks
    BananaRepublic
    As footnote, I wonder what happens when you account for the time to transfer between funds, given that it can take a week or more?
    • jim8089
    • By jim8089 18th Dec 17, 9:20 PM
    • 1 Posts
    • 0 Thanks
    jim8089
    Hi, guys. I've just invested 2k in the Lifestrategy100 and I've set it up to pay in 300 a month, and then I'm going to throw in whatever I can every now and again.

    I'm now not entirely sure the LS100 was the best choice as I am looking to be investing fairly short term (5 years), with the outlook of having a fairly decent house deposit at the end of the 5 years. Would I be better safeguarding my investment with something like the 40 or 60 for those 5 years? I understand its all personal preference, I'm just trying to figure out the smartest option for the short investment time.
    • bowlhead99
    • By bowlhead99 19th Dec 17, 8:18 AM
    • 8,095 Posts
    • 14,754 Thanks
    bowlhead99
    Hi, guys. I've just invested 2k in the Lifestrategy100 and I've set it up to pay in 300 a month, and then I'm going to throw in whatever I can every now and again.

    I'm now not entirely sure the LS100 was the best choice as I am looking to be investing fairly short term (5 years), with the outlook of having a fairly decent house deposit at the end of the 5 years.
    Originally posted by jim8089

    Equity-based investment is best approached with a timescale of 10 years plus. You know that there will be lots of ups and downs over the course of an economic cycle so if you want to have an expectation of getting anything close to the "long term" average (inflation plus a few percent) you need to be able to wait it out for one or two cycles.

    If you put money in an index over only the short term, you are basically spinning a wheel of fortune or hitting the start button on a random number generator and saying you'll be happy with the result whatever it is. It could be +25%, it could be -40%.

    Also if you're not putting the whole lot in for the whole five years, just doing a little up front and then 3-4k a year, most of your money isn't invested for anything like as much as five years. There will be a couple of thousand at the end that isn't even invested on average five months. That's a long way short of the decade plus timescale over which you might expect to approach an 'average' return.

    If you add bonds to the mix, like in the 60% equity product, you'll take the edge off the peaks and troughs and reduce the chance of you seeing the fund's NAV per share halving over a couple of years which would no doubt annoy you greatly if you had a substantial amount invested by the time it happens.

    As you say, it's personal preference in terms of saying you would prefer to maximise the chance of gains or potential significant losses versus, not doing that.

    Let's say, you invest 6k this year at 100 per share and it increases in value 4%. Then you invest another 5k next year at 104 per share and the whole lot goes down 1%. In year three, you add another 10k and the whole lot goes up 3%. Then in year four while the price is 106 per share, you add 5k while the price falls 45% to 58 per share. Then in year five you add the last 3k and it goes down another 4% to 56 per share. In year six it goes up by 10% to 62.

    So, six years in to your five year plan to buy a house, you are at 62 a share and only need the fund to rise by a further 60% to get back over 100 (the level at which the majority of your purchases took place). That might happen over the next year, or over the five to ten years that follow.

    If your timescale for buying the house is very flexible, that might be fine. Who knows what mortgage borrowing conditions will be like in a decade from now though. You may think, well who knows what borrowing conditions and house prices will be like in five years never mind ten... Fair point, and another reason not to leave your deposit funds on a 100% equity roulette wheel.
    Last edited by bowlhead99; 19-12-2017 at 8:50 AM.
    • fiisch
    • By fiisch 19th Dec 17, 9:54 AM
    • 295 Posts
    • 169 Thanks
    fiisch
    I am intending to invest in VLS100 from April next year (I have to wait as fooled around and then closed a S&S ISA earlier this year).

    I will likely start with a fairly modest investment (~1000) and then pay in a regular monthly sum of 150-200.

    I do a fair amount of banking with the Halifax already, but I understand investing directly through Vanguard will be cheaper for the first few years as their fees are percentage based. Once my pot is 10k+, then it may be time to transfer to Halifax S&S ISA as the fees are a flat fee.

    Have I understood that correctly? Is the reduction in fees worth the hassle of switching from Vanguard to Halifax, when I already have a pre-existing relationship with Halifax?

    This money, on top of my pension contributions, does not have any predetermined purpose - it is intended as a plaything to get me start in S&S, as am comfortable with other savings etc. I am currently 31, so can afford a long-term outlook with the ISA.
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