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  • FIRST POST
    • blokedownpub
    • By blokedownpub 14th Jan 20, 11:42 AM
    • 19Posts
    • 5Thanks
    blokedownpub
    cautious would-be investor
    • #1
    • 14th Jan 20, 11:42 AM
    cautious would-be investor 14th Jan 20 at 11:42 AM
    A question from a cautious would-be investor -

    I have a reasonable lump of cash to invest (around 200k) and have had it sitting in an NS&I account for a good bit over a year awaiting the big correction, which stubbornly seems to not be happening.

    I've recently read "Investing Demystified" by Lars Kroijer and his whole shtick (which could be written on a beer-mat) is to realise that being able to outsmart the market is pretty much luck, so the best approach is to diversify as much as possible and balance appetite for risk by varying bonds vs stocks. I'm guessing this is pretty much what the various Vanguard LifeStrategy funds do?

    I'm still worried that the world is going to go to hell in a handcart in the near future, so I'm thinking Vanguard LifeStrategy 20%.

    Make sense? Better alternatives? Or for this kind of decision I should really be seeking financial advice?

    I'm 48 and looking to lock it away for a good while (retirement).

    Ta.
Page 2
    • blokedownpub
    • By blokedownpub 15th Jan 20, 8:13 AM
    • 19 Posts
    • 5 Thanks
    blokedownpub
    The way I look at it , every single person in every e of those companies have lifestyles and families to support . Better still , they are all working for me . They all want to do well and the companies they work for want to do well . With all that goodwill and hard work going on, what could go wrong ?
    Originally posted by C_Mababejive
    I do like the sentiment. :-)
    • blokedownpub
    • By blokedownpub 15th Jan 20, 8:59 AM
    • 19 Posts
    • 5 Thanks
    blokedownpub
    Oh.
    Well that was a quick change of course.
    Originally posted by benbay001
    Fair point.


    Looks like the rule of thumb is (110 - age) to get the percentage split for equities, so for me that would be 62%. At what kind of tick do people generally adjust their holdings to reflect age?
    • Prism
    • By Prism 15th Jan 20, 9:40 AM
    • 1,280 Posts
    • 948 Thanks
    Prism
    Fair point.


    Looks like the rule of thumb is (110 - age) to get the percentage split for equities, so for me that would be 62%. At what kind of tick do people generally adjust their holdings to reflect age?
    Originally posted by blokedownpub
    Age might not come in to it for many. Some people are 100% equities with 2 years of income in cash. Others are 80/20 equities/bonds up to and through retirement. Others move from higher equity allocations down to 60/40 to see them through retirement. Some never get much above 20-40% equities. Certainly there needs to be a plan for retirement but there are lots of differing opinions of what that would look like.

    Myself, I am almost the same age as you but my SIPP is 100% equities and I'm not sure that will change much as I approach retirement.
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