Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Corbula
    • By Corbula 17th May 19, 12:36 PM
    • 40Posts
    • 2Thanks
    Corbula
    Complimentary fund for Lifestrategy 80
    • #1
    • 17th May 19, 12:36 PM
    Complimentary fund for Lifestrategy 80 17th May 19 at 12:36 PM
    Hello, I've been saving into a Vanguard Lifestrategy 80 Acc for around 18 months now through Charles Stanley Direct. Starting with a lump sum of £12000 and then £50 a month from around 6 months ago. I'm doing this for later life, not necessarily retirement but potentially if I need some of it earlier I can. The idea though is later in life (I'm just about to turn 29).

    Along side this I have my pension, which as from April I'm contributing 5% and my employer is contributing 3%.

    I am saving up for a house and have the HTB and things but realistically £600 a year wouldn't make much difference to that. I'm thinking of doing another £50 a month into another fund. I think this would be a good contribution for retirement when you put it all together, what do you think? It's about 12% of my salary, just under £25000.

    What funds would you recommend to compliment Lifestrategy 80? I see some people say property funds, but I was thinking future technologies as a potential option. Funds that benefit from things like 5g, AI, robotics. Seems like it could be a good idea.

    What would you recommend?
Page 1
    • Alistair31
    • By Alistair31 17th May 19, 1:01 PM
    • 99 Posts
    • 101 Thanks
    Alistair31
    • #2
    • 17th May 19, 1:01 PM
    • #2
    • 17th May 19, 1:01 PM
    In your circumstances Iíd just stick with VLS80.
    If it ainít broke...
    • eskbanker
    • By eskbanker 17th May 19, 1:02 PM
    • 10,132 Posts
    • 12,239 Thanks
    eskbanker
    • #3
    • 17th May 19, 1:02 PM
    • #3
    • 17th May 19, 1:02 PM
    There aren't any complimentary funds, they all charge

    If you're looking for something to complement a multi-asset product that's already inherently heavily diversified then it doesn't really have sector gaps to fill as such - you can of course select something specialist that takes your fancy but you'd essentially be upweighting an allocation purely on the basis of your own conviction/analysis rather than plugging a hole as it were....

    You're hopefully doing this within a S&S ISA already, but worth considering a Lifetime ISA for money you'd be happy to commit until you're 60 (in return for the 25% bonus).
    • AnotherJoe
    • By AnotherJoe 17th May 19, 1:03 PM
    • 14,251 Posts
    • 16,960 Thanks
    AnotherJoe
    • #4
    • 17th May 19, 1:03 PM
    • #4
    • 17th May 19, 1:03 PM
    In that case would suggest you look at whats variously called renewable or alternative energy



    These are two I've just bought into recently there are quite a few others

    iShares II plc S&P Global Clean Energy
    The Renewables Infrastructure Group Limited


    If you wanted technology then Scottish Mortgage Trust (which offhand doesn't sound very high tech) is a decent performer
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • ColdIron
    • By ColdIron 17th May 19, 1:19 PM
    • 5,199 Posts
    • 7,064 Thanks
    ColdIron
    • #5
    • 17th May 19, 1:19 PM
    • #5
    • 17th May 19, 1:19 PM
    I would look for something it doesn't already have rather than overweighting on stuff it does have, perhaps smaller companies. Or just stick with VLS80. Be aware that if you add equities it will reduce your 20% bond allocation and raise its risk profile. In your shoes I would prioritise my house savings
    • Corbula
    • By Corbula 17th May 19, 1:37 PM
    • 40 Posts
    • 2 Thanks
    Corbula
    • #6
    • 17th May 19, 1:37 PM
    • #6
    • 17th May 19, 1:37 PM
    There aren't any complimentary funds, they all charge

    If you're looking for something to complement a multi-asset product that's already inherently heavily diversified then it doesn't really have sector gaps to fill as such - you can of course select something specialist that takes your fancy but you'd essentially be upweighting an allocation purely on the basis of your own conviction/analysis rather than plugging a hole as it were....

    You're hopefully doing this within a S&S ISA already, but worth considering a Lifetime ISA for money you'd be happy to commit until you're 60 (in return for the 25% bonus).
    Originally posted by eskbanker
    good catch! Yes I'm doing it in a S&s ISA already and will continue to do so. I might look into the Lifetime one but I can't until I'm sorted with my HTB ISA for a house. Even then I don't know if i could transfer all of it or not.
    So you're saying just do more into the lifestrategy one.

    In that case would suggest you look at whats variously called renewable or alternative energy



    These are two I've just bought into recently there are quite a few others

    iShares II plc S&P Global Clean Energy
    The Renewables Infrastructure Group Limited


    If you wanted technology then Scottish Mortgage Trust (which offhand doesn't sound very high tech) is a decent performer
    Originally posted by AnotherJoe
    OK thanks for the suggestion, I will look into these.

    I would look for something it doesn't already have rather than overweighting on stuff it does have, perhaps smaller companies. Or just stick with VLS80. Be aware that if you add equities it will reduce your 20% bond allocation and raise its risk profile. In your shoes I would prioritise my house savings
    Originally posted by ColdIron
    Yea smaller companies are another option. It seems though that are lot of funds follow very similar ups and downs as Lifestrategy does. I know Lifestrategy is very UK based, so was thinking of things that it doesn't have or things that might do well in the future or are at least consistent growth.

    The joys of trying to buy on you're own the huge amounts I will need, £600 over 12 months won't dent it. So thought I might as well get other things sorted at the same time.
    • eskbanker
    • By eskbanker 17th May 19, 2:16 PM
    • 10,132 Posts
    • 12,239 Thanks
    eskbanker
    • #7
    • 17th May 19, 2:16 PM
    • #7
    • 17th May 19, 2:16 PM
    Yes I'm doing it in a S&s ISA already and will continue to do so. I might look into the Lifetime one but I can't until I'm sorted with my HTB ISA for a house.
    Originally posted by Corbula
    LISA is independent of both S&S and HTB ISAs, i.e. you can pay into all three concurrently if you wish - you can't get the government bonus from both a LISA and a HTB for use towards a first-time property purchase, but can use the HTB for the house while simultaneously funding a LISA for long-term use.

    Even then I don't know if i could transfer all of it or not.
    Originally posted by Corbula
    No, you can only put £4K per year into a LISA but the fact that this is promptly boosted by 25% makes it something of a no-brainer for money that can effectively be locked away until 60.

    So you're saying just do more into the lifestrategy one.
    Originally posted by Corbula
    Not really, I was saying that it's perfectly legitimate to diversify into specialist areas if they float your boat, but was essentially just making the largely semantic point that this isn't necessarily complementing VLS as such, it's just modifying your allocations unless you're going into territory that VLS doesn't cover at all, i.e. VLS will already include shares of some of the larger companies developing future tech.
    • Corbula
    • By Corbula 17th May 19, 6:40 PM
    • 40 Posts
    • 2 Thanks
    Corbula
    • #8
    • 17th May 19, 6:40 PM
    • #8
    • 17th May 19, 6:40 PM
    I will keep looking to see what I can find before I just do more into Lifestrategy 80. What about this one though, its not exactly completely different to VLS but it's done very well although it has a high charge at 0.731%. It's grown well but it doesn't have quite the same dips and VLS has had over the last couple of years.
    Lindsell Train Global Equity B GBP
    • kcrane
    • By kcrane 17th May 19, 7:09 PM
    • 20 Posts
    • 4 Thanks
    kcrane
    • #9
    • 17th May 19, 7:09 PM
    • #9
    • 17th May 19, 7:09 PM
    These four ETFs fit your criteria:

    RBTX - Robotics
    DGIT - Digitalisation
    ISPY - Cyber Security
    LOCK - DIgital Security
    • fred246
    • By fred246 17th May 19, 7:37 PM
    • 1,503 Posts
    • 892 Thanks
    fred246
    VLS80 US 34% UK 24%
    FTSE GLOBAL ALL CAP US 50% UK 5%
    If you think VLS80 is too UK heavy you could add a global fund
    • george4064
    • By george4064 17th May 19, 7:42 PM
    • 1,148 Posts
    • 1,179 Thanks
    george4064
    To be honest, anything that Vanguard LS doesn’t hold will complement your portfolio.

    Have a look at the fact sheet to see where it’s invested and choose another fund/investment trust that holds assets your Vanguard doesn’t.

    To give a few examples could be small cap, property, infrastructure, private equity etc....
    Last edited by george4064; 17-05-2019 at 8:12 PM.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2017 - #003 £12,427.51 (104%)
    Save £12k in 2018 - #004 £9,165.94 (46%)
    Save £12k in 2019 - #007 £8,654.09 (72%)
    • staffie1
    • By staffie1 17th May 19, 7:53 PM
    • 1,627 Posts
    • 1,326 Thanks
    staffie1
    I have VLS80 and VLS60 running concurrently. I used to buy them via Charles Stanley too, but moved them to Vanguard themselves - bit cheaper.
    If you will the end, you must will the means
    • AnotherJoe
    • By AnotherJoe 17th May 19, 9:14 PM
    • 14,251 Posts
    • 16,960 Thanks
    AnotherJoe
    Is that because you believe VLS70 fits your risk profile better than 60 or 80?
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Thrugelmir
    • By Thrugelmir 17th May 19, 10:09 PM
    • 63,125 Posts
    • 56,029 Thanks
    Thrugelmir
    £50 into a seperate fund isn't worth the bother. Once the VLS is of larger value. Then channel your entire monthly savings into another fund.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • yucatan
    • By yucatan 18th May 19, 9:01 AM
    • 1 Posts
    • 0 Thanks
    yucatan
    What about a bit of Vanguard Global Small-Cap? From what I can see VLS doesn't have small caps?
    • Corbula
    • By Corbula 18th May 19, 11:03 AM
    • 40 Posts
    • 2 Thanks
    Corbula
    £50 into a seperate fund isn't worth the bother. Once the VLS is of larger value. Then channel your entire monthly savings into another fund.
    Originally posted by Thrugelmir
    So keep saving into VLS then start on another one when it's of larger value? What would you consider larger value?

    What about a bit of Vanguard Global Small-Cap? From what I can see VLS doesn't have small caps?
    Originally posted by yucatan
    I don't think it does no, however it seems like a lot of other funds. When you compare them to VLS they seem to follow the same patterns, the same ups and downs even though its meant to be a different market.
    • Thrugelmir
    • By Thrugelmir 18th May 19, 12:10 PM
    • 63,125 Posts
    • 56,029 Thanks
    Thrugelmir
    So keep saving into VLS then start on another one when it's of larger value? What would you consider larger value?

    Originally posted by Corbula
    An objective based on your personal goals. Personally as an initial core holding I would target a minimum £30k. As it's a large broad based fund. With the number of companies held within. You actually own very little of any of them.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • Corbula
    • By Corbula 18th May 19, 1:16 PM
    • 40 Posts
    • 2 Thanks
    Corbula
    An objective based on your personal goals. Personally as an initial core holding I would target a minimum £30k. As it's a large broad based fund. With the number of companies held within. You actually own very little of any of them.
    Originally posted by Thrugelmir
    OK, I think I will stick with VLS for now until I've got more in it and then look at it again then what I could start putting into as well. It's difficult finding something that has different peaks than VLS due to how broad it is.

    One thing I have been wondering. I'm doing this into an ACC VLS rather than an income one. When I want to start getting an income from it, do I have to transfer it all into an income version or just leave it where it is and draw it down from there?
    • bowlhead99
    • By bowlhead99 18th May 19, 1:52 PM
    • 8,724 Posts
    • 15,960 Thanks
    bowlhead99
    One thing I have been wondering. I'm doing this into an ACC VLS rather than an income one. When I want to start getting an income from it, do I have to transfer it all into an income version or just leave it where it is and draw it down from there?
    Originally posted by Corbula
    The ACC version of the fund doesn't pay an income to you, as your choice by opting for ACC is to have the fund manager reinvest any dividend and interest income that the fund receives (after costs of running the fund) back into more investment assets for the fund.

    If you sell out of the ACC fund and buy the INC version of the fund instead, the fund manager will be taking any dividend and interest income that the fund receives, after costs of running the fund, and paying it out to investors such as yourself. So every so often - on each dividend date - the fund value will reduce and cash will arrive in your account.

    However, the amount of money that arrives in your account from the INC fund may not be the amount of money you want to get from the fund. It might be that you want £5000 a year to live on, but the fund's natural rate of dividends on the size of investment you have (say £100k) is only £2000 a year. So you would need to manually sell some of your units in the fund to get your hands on a further £3000 of cash.

    Alternatively, maybe the INC fund is paying £2000 a year but you only need £1500 a year for your living costs. So you end up with more money than you wanted, and if you want to keep the £500 invested you will have to do a small purchase each time they pay you the dividends, so that you've only reduced your investment holding by £1500.

    So, unless the amount of money you want to take from the fund each month or each year exactly equals the natural income rate of the fund, your choice to move to the INC version does not prevent you from having to do some extra selling or buying. And if you know you are going to have to do some selling or buying over the course of a year anyway, you might decide that you prefer to keep the ACC fund and just sell a bit of it each time you want some cash out of it.
    • MK62
    • By MK62 18th May 19, 1:55 PM
    • 415 Posts
    • 306 Thanks
    MK62
    As you are with Charles Stanley Direct, fund dealing is free (or covered in your annual charges anyway), so it makes little difference in your ISA whether you hold ACC or INC versions, but personally I'd choose the ACC version and just sell down enough units each year to cover your income.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

14Posts Today

3,163Users online

Martin's Twitter
  • This is a very useful and interesting, factual piece about what the PM's new Brexit proposals mean and how new they? https://t.co/qM1bCz6FZp

  • After two cancellations, I'm on the 3rd train back from Manch. Just heard its being rerouted as someone's taken tak? https://t.co/sRO4cvoWIw

  • RT @helen_undy: It's hard campaigning at the moment. Trying to cut through amid Brexit votes, protests & political resignations can feel fu?

  • Follow Martin