Vanguard Life Strategy Carpi09

#1
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

#3
This doesn't mean much to me at all but i will read both those links.



Does this mean TD will no longer be as good as HL or any other suggestions?

#4
As with all investments working out the cost effectiveness of various fixed charges and percentages depends on the amount you intend to invest, how you intend to invest and the way in which those charges apply.



One quick, crude example is comparing the new 0.35% charge that TD will be charging with someone like Best invest who currently levy a fixed custody charge of £12.50+VAT per quarter (so £60 a year) for holding funds like Vanguards offerings which don't pay any commission to anyone.



So TD are cheaper at 0.35% per annum on account balances below £17,142. Above that amount and best invest at a fixed £60 become increasingly cheaper to use as your investment platform.

#5



As with all investments working out the cost effectiveness of various fixed charges and percentages depends on the amount you intend to invest, how you intend to invest and the way in which those charges apply.



One quick, crude example is comparing the new 0.35% charge that TD will be charging with someone like Best invest who currently levy a fixed custody charge of £12.50+VAT per quarter (so £60 a year) for holding funds like Vanguards offerings which don't pay any commission to anyone.



So TD are cheaper at 0.35% per annum on account balances below £17,142. Above that amount and best invest at a fixed £60 become increasingly cheaper to use as your investment platform.
Originally posted by JohnRo


Thank you,



I have read both links. It was mentioned that if TD are introducing these fees then HL will likely raise theirs, making TD still attractive?



I intend to put £5640 as a lump sum for this years allowance and then possibly monthly for the following year. However during next year, i could possibly max it out very early on.



Am i thinking, from your reply above, with my current plan. I am still best off with TD because my balance for the next 2 years will be below £17,142?

#6
yes you'd be right to do so, in that example, but you need to consider others.



0.35% platform charge is by no means the cheapest, it's actually the higher end so you need to consider all available options really. A little work now can save you a good few pounds later.



http://forums.moneysavingexpert.com/showthread.php?t=3153942&highlight=share+dealing+p latform



Also in 2 years time the investment landscape shaking should have subsided and the dust settled, there should then be a much more settled picture of what's available and how much it will cost going forward.

#7
I have a S+S ISA with H-L which invests in the Vanguard LifeStrategy 40% fund. I chose H-L because, as a beginner, they had a user-friendly website with loads of info, and good phone support.



One thing to be aware of is that H-L charge £2 per month PER Vanguard Lifestrategy fund. So, if you went with them you should probably choose whichever of the LifeStrategy funds suits your profile, and stick to just one.



I did read here about other platforms with cheaper fees, but the feeling here was that fees would probably change over the next 12 months anyway.

#8



yes you'd be right to do so, in that example, but you need to consider others.



0.35% platform charge is by no means the cheapest, it's actually the higher end so you need to consider all available options really. A little work now can save you a good few pounds later.



http://forums.moneysavingexpert.com/showthread.php?t=3153942&highlight=share+dealing+p latform



Also in 2 years time the investment landscape shaking should have subsided and the dust settled, there should then be a much more settled picture of what's available and how much it will cost going forward.
Originally posted by JohnRo


Really appreciate your advice, but reading that thread is way too much for me to take in. I tried but its like reading Chinese to me, absolutely clueless



I am a simple person, all i need to know is; if i invest with just 1 fund IE Vanguard, will i be required to do anything (Buy/sell) which i dont want to do. AND, where is the best place to choose with my current plans?






I have a S+S ISA with H-L which invests in the Vanguard LifeStrategy 40% fund. I chose H-L because, as a beginner, they had a user-friendly website with loads of info, and good phone support.



One thing to be aware of is that H-L charge £2 per month PER Vanguard Lifestrategy fund. So, if you went with them you should probably choose whichever of the LifeStrategy funds suits your profile, and stick to just one.



I did read here about other platforms with cheaper fees, but the feeling here was that fees would probably change over the next 12 months anyway.
Originally posted by gterr


Didn't think about that, thanks.



To be honest, i dont want to get too involved with the S&S ISA so all i want is the cheapest place for my S&S ISA to mature without me doing nothing but contributing my hard earned money. I am not bothered how easy the interface is because of my involvement will be pretty much zero.



I hope this makes sense because it doesn't too me

#9
Definitely just put your money in one of those funds. I'm in the 80% equity one, but I'm not very risk averse.



If you want to diversify beyond one of those funds you can always just put a small amount into a BlackRock fund or something... I am using HL, personally, but there are a few suggestions above from others.

#10
Same as other's have said really, there's no need to have more than one of the LifeStrategy funds at the start (the only real reason to hold more than one is to 'Lifestyle' your funds as you approach retirement or similar).



I have ~£35k in the 60% Acc fund on HL - £24 platform fee per annum is cheap as chips.

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