Vanguard LifeStrategy

[LeoSayer]

ATM said:

I dont want to poo poo all this optimism. But we are in a unique situation right now where all assets are in a massive bubble. Once this bubble pops there will be a serious correction. So by all means go all in now but bear in mind the correction could be swift and savage.

How are you protecting yourself from the impending correction?

[ATM]

LeoSayer said:

ATM said:

I dont want to poo poo all this optimism. But we are in a unique situation right now where all assets are in a massive bubble. Once this bubble pops there will be a serious correction. So by all means go all in now but bear in mind the correction could be swift and savage.

How are you protecting yourself from the impending correction?

Not long anything except some smaller AIM plays which are not burdened with debt.

Short sp500 and short Tesla.

Tempted to also short TLT / some other bonds. Surely when governments stop buying bonds their prices will fall.

[Zoon]

ATM said:

LeoSayer said:

ATM said:

I dont want to poo poo all this optimism. But we are in a unique situation right now where all assets are in a massive bubble. Once this bubble pops there will be a serious correction. So by all means go all in now but bear in mind the correction could be swift and savage.

How are you protecting yourself from the impending correction?

Not long anything except some smaller AIM plays which are not burdened with debt.

Short sp500 and short Tesla.

Tempted to also short TLT / some other bonds. Surely when governments stop buying bonds their prices will fall.

Good luck with them.

[r44flyer]

Nano2nd said:

honestly I don't know where to start with this!

Indeed. Might need to check the maths on that as the answer is definitely not '4'.

[stichill99]

A friend who runs a small garage who never stopped working through covid asked his accountant if he should claim grants. When asked if his business had suffered he said he had only done 32 mot's this month and last year he had done 36 the same month. They were handed over £27k in total. At the end of his tax year he was desperately looking for a new works van and expensive diagnostic software to get the money spent. Did he need the grant? No! How many other businesses like this?

[Royal Jelly]

The government has papered over the cracks..

My guess:
The cracks are still there and will emerge from time to time, but the trillions of excess liquidity spewed out by governments in countries that VLS buys into, has to end up somewhere - and that somewhere is assets..

It won’t be all smooth sailing but a lot of wallpaper has been applied…

[ATM]

And that's what is different now. Printing money doesn't directly affect individuals or Joe Public when you just buy bonds but once you start handing over 5 figure sums to people who run small businesses it definitely does. Then add the whole TINA debate where people start to see assets rising and believe There Is No Alternative and all of a sudden everyone is spending more and speculating more. They had a plausible reason to give people bail outs but once that reason passes they will surely have to stop. Then we see how our economy holds up on its own without bail outs. And if inflation keeps on they will have to stop printing too. I don't think we have years to wait for doom and gloom I think it's only months away.

[Kickstart]

I am a big fan of Vanguard having invested in them from almost the moment they opened in the UK

The only thing I don't like about the LS funds is the UK bias - I think from memory it is 25% which tends to mean that the equities part of the fund lags behind the FTSE All share index

Rob Berger on YouTube is well worth a watch about all this

[roger.mellie]

Kickstart said:

I am a big fan of Vanguard having invested in them from almost the moment they opened in the UK

The only thing I don't like about the LS funds is the UK bias - I think from memory it is 25% which tends to mean that the equities part of the fund lags behind the FTSE All share index

Rob Berger on YouTube is well worth a watch about all this

I'd get out now while you can. I'm the worst financial investor I know. I'm the bloke that bought shares in a cruise line before the global pandemic, bought property in 2007, started a software company in 2001 and again in 2007. I've just spent an unhealthy sum on a vanguard fund, I'm waiting to hear that the FTSE has dumped half its value as that would be par for the course.

[anonymous-user]

roger.mellie said:

I'd get out now while you can. I'm the worst financial investor I know. I'm the bloke that bought shares in a cruise line before the global pandemic, bought property in 2007, started a software company in 2001 and again in 2007. I've just spent an unhealthy sum on a vanguard fund, I'm waiting to hear that the FTSE has dumped half its value as that would be par for the course.

Sounds like we might be related in some way. I am the one who bought Gold, watched the price drop slightly and sold at $1450 AUD before it rose to $2438 AUD today (5 years later)

I found out about Bitcoin around 2016 and tried to find the next Bitcoin. After some research I found this other coin called Ethereum which was something like $7 a coin so decided to buy $1000 worth. It all seemed too much effort in those days so I gave up on it.

After watching the price slowly rise I finally bought some BTC in 2017 when it was around $15K, watched it rise to $20K and bailed around $17K

I invested in Vanguard in February 2020 then Covid hit and it lost about 20% over night. I waited until it got back to the amount I initially invested and then pulled it out, only for it to rise 20% in the next year or so.

Now putting £1500 a month into a Vanguard account again with the mantra "do not panic and bail, hold your nerve and it will bounce back". Expect a massive crash any time soon.

[roger.mellie]

Joey Deacon said:

roger.mellie said:

I'd get out now while you can. I'm the worst financial investor I know. I'm the bloke that bought shares in a cruise line before the global pandemic, bought property in 2007, started a software company in 2001 and again in 2007. I've just spent an unhealthy sum on a vanguard fund, I'm waiting to hear that the FTSE has dumped half its value as that would be par for the course.

Sounds like we might be related in some way. I am the one who bought Gold, watched the price drop slightly and sold at $1450 AUD before it rose to $2438 AUD today (5 years later)

I found out about Bitcoin around 2016 and tried to find the next Bitcoin. After some research I found this other coin called Ethereum which was something like $7 a coin so decided to buy $1000 worth. It all seemed too much effort in those days so I gave up on it.

After watching the price slowly rise I finally bought some BTC in 2017 when it was around $15K, watched it rise to $20K and bailed around $17K

I invested in Vanguard in February 2020 then Covid hit and it lost about 20% over night. I waited until it got back to the amount I initially invested and then pulled it out, only for it to rise 20% in the next year or so.

Now putting £1500 a month into a Vanguard account again with the mantra "do not panic and bail, hold your nerve and it will bounce back". Expect a massive crash any time soon.

Lol, yip, best I can say is I've learned from my mistakes and if it does take a dump I'm not stocking up on shotguns and tinned food as if it gets to that then who cares what the market is doing

Close my eyes and stick the money in and don't keep peeking. Easier said than done but I've been reasonably well behaved on it.

Must admit I've never went near bitcoins or gold. I think the bloke's a bit of a shill but I follow Jim Rickard and others like him to ensure I'm not listening to a single unanimous viewpoint, he has some interesting opinions on gold as a safety store but loses me when he lets his political bias get involved.

[Rob_125]

^ definitely reaffirms the adage to stay in and ride the wave.

I've done fairly well on my equity 60, watching it drop 20-30% over a couple weeks was scary. Though as I wasn't playing with big sums (4 figures at the time) I did a couple buys on the dips, which has really improved my returns. Somehow managed to nail one very near the bottom (luck more than judgement!).

[NRS]

ATM said:

And that's what is different now. Printing money doesn't directly affect individuals or Joe Public when you just buy bonds but once you start handing over 5 figure sums to people who run small businesses it definitely does. Then add the whole TINA debate where people start to see assets rising and believe There Is No Alternative and all of a sudden everyone is spending more and speculating more. They had a plausible reason to give people bail outs but once that reason passes they will surely have to stop. Then we see how our economy holds up on its own without bail outs. And if inflation keeps on they will have to stop printing too. I don't think we have years to wait for doom and gloom I think it's only months away.

They never stopped printing after the financial crisis - why would they stop after Covid? You’re forgetting that the West has an economy that has basically stagnated, with most of the world growth in places like China, as you get far better returns. So because there is limited real growth the west is replacing it with printing cash to make a simulated growth. Which is kinda fine, apart from the growing inequality it creates (spare cash ends up in the assets and little in real new jobs, pay rises etc so unless you’re well enough off to own assets you’re a bit stuffed).

[Sawyer6]

Hi,

I also want to transfer cash from my SIPP into Vanguard (probably 60 or 80). Vanguard say I need to do a transfer to effectively open a new SIPP with them and then invest it from there into the 60/80. My existing SIPP company think they have this wrong and I just want to open an investment account with Vanguard UNDER my existing SIPP.

There is no option to open a 60 directly from website but I think I can open a general account (attach an investment from there) and say what ££s to send. I also am told by SIPP that I have to ensure account name with Vanguard matches my SIPP name or SIPP company wont send it out.

Any practical advice from anyone who has done this themselves, since I have this conflicting advice?

Cheers

[Kickstart]

Sawyer6 said:

Hi,

I also want to transfer cash from my SIPP into Vanguard (probably 60 or 80). Vanguard say I need to do a transfer to effectively open a new SIPP with them and then invest it from there into the 60/80. My existing SIPP company think they have this wrong and I just want to open an investment account with Vanguard UNDER my existing SIPP.

There is no option to open a 60 directly from website but I think I can open a general account (attach an investment from there) and say what ££s to send. I also am told by SIPP that I have to ensure account name with Vanguard matches my SIPP name or SIPP company wont send it out.

Any practical advice from anyone who has done this themselves, since I have this conflicting advice?

Cheers

I am a bit confused (it is probably my age so don't take offence) as I suspect Vanguard might be - if you want to take some money out of pension then why not get it paid to you and then you can do what you want with it including opening an ISA/General account etc

I am not sure what you mean by opening an investment account under my existing SIPP - Vanguard simply offer investment accounts, SIPPs and ISA's

If you simply want to open an investment account then open one online and once you get a cash payment from your pension paid to you, put it in directly is probably the easiest way if that is what you are referring to

[Mr Pointy]

Kickstart said:

Sawyer6 said:

Hi,

I also want to transfer cash from my SIPP into Vanguard (probably 60 or 80). Vanguard say I need to do a transfer to effectively open a new SIPP with them and then invest it from there into the 60/80. My existing SIPP company think they have this wrong and I just want to open an investment account with Vanguard UNDER my existing SIPP.

There is no option to open a 60 directly from website but I think I can open a general account (attach an investment from there) and say what ££s to send. I also am told by SIPP that I have to ensure account name with Vanguard matches my SIPP name or SIPP company wont send it out.

Any practical advice from anyone who has done this themselves, since I have this conflicting advice?

Cheers

I am a bit confused (it is probably my age so don't take offence) as I suspect Vanguard might be - if you want to take some money out of pension then why not get it paid to you and then you can do what you want with it including opening an ISA/General account etc

I am not sure what you mean by opening an investment account under my existing SIPP - Vanguard simply offer investment accounts, SIPPs and ISA's

If you simply want to open an investment account then open one online and once you get a cash payment from your pension paid to you, put it in directly is probably the easiest way if that is what you are referring to

If his existing SIPP is with an instituyion like Hargreaves Lansdown he could buy the Vanguard fund within the current SIPP, but that might incur higher fees than investing directly with Vanguard.

OP have you read this section on the Vanguard website?
https://www.vanguardinvestor.co.uk/what-we-offer/p...

[bitchstewie]

Dumb question time.

If I open a Vanguard SIPP and transfer an existing old (non-SIPP) pension in I assume the existing provider sells the holdings as they aren't Vanguard funds and transfers "cash" into Vanguard.

If I put in £100 of new money on a debit card what happens about the tax relief?

Does it appear in the SIPP as cash and if so roughly how much later please?

[VR99]

bhstewie said:

Dumb question time.

If I open a Vanguard SIPP and transfer an existing old (non-SIPP) pension in I assume the existing provider sells the holdings as they aren't Vanguard funds and transfers "cash" into Vanguard.

If I put in £100 of new money on a debit card what happens about the tax relief?

Does it appear in the SIPP as cash and if so roughly how much later please?

You may need to check with Vanguard first. Even if Vanguard accepts an 'in speccie' transfer of a non-Vanguard investment I've heard some horror stories of delayed transfers taking over 6 months to complete.
The other option is to sell the investments then transfer as cash which is generally quicker but you would be out of the market for the transfer period so potentially lossing out on gains...or avoiding a drop.
I'm not a pension expert so take what I've said with a pinch of salt untill the more knowledgeable opine!

Edited by VR99 on Saturday 11th September 15:26

[NerveAgent]

bhstewie said:

Dumb question time.

If I open a Vanguard SIPP and transfer an existing old (non-SIPP) pension in I assume the existing provider sells the holdings as they aren't Vanguard funds and transfers "cash" into Vanguard.

If I put in £100 of new money on a debit card what happens about the tax relief?

Does it appear in the SIPP as cash and if so roughly how much later please?

On mine, the tax relief comes in about 6 weeks later. It’s automatically gets invested in the same funds at the same ratio as my payments in. I assume it will just stay as cash if you just add cash.

[bitchstewie]

NerveAgent said:

On mine, the tax relief comes in about 6 weeks later. It’s automatically gets invested in the same funds at the same ratio as my payments in. I assume it will just stay as cash if you just add cash.

Thank you I simply didn't know how it appeared but it sounds as if it's out of nowhere.

It looks as simple as opening an ISA or unwrapped account.

Is there anything else to be aware of opening a SIPP?