Vanguard LifeStrategy
Discussion
JulianPH said:
By way of an example of active asset allocation we recently made several changes to our portfolios as I was concerned that we were facing .......
We are therefore able to reflect such concerns in our IM Optimum portfolios in a way that Vanguard simply can't.
Thanks! Maybe I need funds 101, but the way I learn is by doing, not just reading - does this make sense:We are therefore able to reflect such concerns in our IM Optimum portfolios in a way that Vanguard simply can't.
OK - LS40 is run by a computer algorithm buying and selling the market, sticking to 40% equities max.
If I buy active funds I am trusting that the manager has an edge over the market and can forsee the way events will impact my investment before the market responds.
But at the cautious end of the risk profile the manager is focussed on trying not to lose me any money than looking for the next payoffs.
So it's actually unlikely to match the algorithm run whole market approach in recent history because of a bull market. In an unstable or bear market the active fund in theory should do better at not losing me money.
Penny is slowly dropping.
was8v said:
JulianPH said:
By way of an example of active asset allocation we recently made several changes to our portfolios as I was concerned that we were facing .......
We are therefore able to reflect such concerns in our IM Optimum portfolios in a way that Vanguard simply can't.
Thanks! Maybe I need funds 101, but the way I learn is by doing, not just reading - does this make sense:We are therefore able to reflect such concerns in our IM Optimum portfolios in a way that Vanguard simply can't.
OK - LS40 is run by a computer algorithm buying and selling the market, sticking to 40% equities max.
If I buy active funds I am trusting that the manager has an edge over the market and can forsee the way events will impact my investment before the market responds.
But at the cautious end of the risk profile the manager is focussed on trying not to lose me any money than looking for the next payoffs.
So it's actually unlikely to match the algorithm run whole market approach in recent history because of a bull market. In an unstable or bear market the active fund in theory should do better at not losing me money.
Penny is slowly dropping.
In a long term bull market I would expect a global tracker to out perform any managed equivalent (and the managed funds that out perform global trackers are really just tracking core global stocks on a buy and hold basis).
Learning by doing, rather than reading does indeed make sense and I think this is great for people prepared to take the time to do this. Not everyone can though.
There is not one single investment/fund manager who has an edge over the markets or can foresee future events. If anyone claims they can then don't walk away, run, as fast as you can!
What we do with IM Optimum is crunch a lot of data and then apply the common sense that comes with decades of experience. I am currently sitting on the highest cash holding we have ever had. This is with good reason as I want to see the direction of travel before committing to other asset classes across the world.
Yes, this may wipe a percentage point or two off our returns, but it can equally be the factor that delivers a profit rather than a loss.
With IM Index I have simply (not that is was exactly simple!) set the asset allocation and then it will run with no ongoing management.
This obviously comes at a lower cost and in bull markets or for long term buy and hold should deliver the highest returns, but in doing so it will carry higher volatility.
IM Optimum manages this volatility and is very sensible (perhaps this is seen as a downside), particularly for those approaching, or already in the income drawing phase, or with shorter investment horizons.
There isn't a right or wrong way, just different ways. It is identifying the one that bests suits you at any point in time that is important.
As an aside, may I just point out that I am completely dyslexic when it comes to writing, so when I make posts with obvious errors it is not stupidity, it is because as long as it is an actual word then I have some confidence that I have got it right.
Most of the time, despite this, I have get it wrong though!
I make up for this when it comes to digesting numbers; I can see though balance sheets and market fundamentals without thinking about it (this doesn't mean I always make the right call, but it certainly helps!).
I suppose this is why I have the role I have, rather than being a content writer!
Anyway, I just thought I should point this out, rather than edit every single post I read back (I have no problem reading, only writing BTW).
Cheers.... That is now off my chest!
Most of the time, despite this, I have get it wrong though!
I make up for this when it comes to digesting numbers; I can see though balance sheets and market fundamentals without thinking about it (this doesn't mean I always make the right call, but it certainly helps!).
I suppose this is why I have the role I have, rather than being a content writer!
Anyway, I just thought I should point this out, rather than edit every single post I read back (I have no problem reading, only writing BTW).
Cheers.... That is now off my chest!
JulianPH said:
As an aside, may I just point out that I am completely dyslexic when it comes to writing, so when I make posts with obvious errors it is not stupidity, it is because as long as it is an actual word then I have some confidence that I have got it right.
Just on this point, you might want to try installing something like Grammarly. It is free, and helps spot quite a few errors. It is what I use.EddieSteadyGo said:
JulianPH said:
As an aside, may I just point out that I am completely dyslexic when it comes to writing, so when I make posts with obvious errors it is not stupidity, it is because as long as it is an actual word then I have some confidence that I have got it right.
Just on this point, you might want to try installing something like Grammarly. It is free, and helps spot quite a few errors. It is what I use.
What happens if the market's continue to rise, at what point would you jump in. This is where drip feeding to ride the markets is key. It also depends on your planned period of investment. Okay the markets may drop in a month's time. But in 10 years time they may be higher than they are now, negating any losses. Remember you only loose money if you sell when you're down. I haven't really put that across very well, but yeah.
ATM said:
Yeah but if you park the money and wait for high markets to drop and then put the money in you'll make more by getting in lower surely.
How long are you willing to wait? You could invest now and benefit from dividends before the market drops, which it will at some point as it always does, or drip feed your investment every month to average it out. Trying to time the market is pretty difficult though.forest172 said:
Would/has anybody got all their ISA with these funds at say £100k. My cash one has just matured and I'm thinking of switching it to LS60, talking £70k
Funds like these can be a brilliant way of managing your money. Within one fund you get exposure to a global portfolio of shares and bonds at a low cost.Obviously very different to holding cash though.
JulianPH said:
Funds like these can be a brilliant way of managing your money. Within one fund you get exposure to a global portfolio of shares and bonds at a low cost.
Obviously very different to holding cash though.
Just checked my cash isa and £65k of it matures july 31st 2020, been getting 2%Obviously very different to holding cash though.
Not sure if I should drag it out and pay the penalty and get underway with the SS ISA
Appreciate it may just be the way you've worded it but don't "drag it out" of the wrapper, make sure you transfer it into a S&S ISA if you go that direction.
Keep in mind that you don't have to invest cash within a S&S ISA immediately, you can keep cash in the account, you just won't make interest on it.
All I'd say is make sure you're comfortable with your risk profile.
LS60 is balanced but is still an investment and is a long way from the safety of a savings product.
Keep in mind that you don't have to invest cash within a S&S ISA immediately, you can keep cash in the account, you just won't make interest on it.
All I'd say is make sure you're comfortable with your risk profile.
LS60 is balanced but is still an investment and is a long way from the safety of a savings product.
At 2% you are actually losing money to inflation.
My S&S ISA for this tax years is up c. 6% over the last 4 months (though it is obviously with Intelligent Money rather than Vanguard, but the principle remains the same).
b
hstewie make two very important points, S&S ISAs are completely different to cash ISAs in that you will see the value fluctuate daily and have to be prepared for the fall that come with the rises. You should be looking at the long term to get the best gains.
Also, do not close the cash ISA, transfer it to a S&S ISA. If you close it you have lost the allowances. I think you know that anyway and it probably was semantics, but people do do this without realising.
My S&S ISA for this tax years is up c. 6% over the last 4 months (though it is obviously with Intelligent Money rather than Vanguard, but the principle remains the same).
b
hstewie make two very important points, S&S ISAs are completely different to cash ISAs in that you will see the value fluctuate daily and have to be prepared for the fall that come with the rises. You should be looking at the long term to get the best gains.Also, do not close the cash ISA, transfer it to a S&S ISA. If you close it you have lost the allowances. I think you know that anyway and it probably was semantics, but people do do this without realising.
I read the replies, thank you. I have now done 2 X transfers into vanguard 60% and hold £25k in that now. Stocks and shares all new to me, but after reading forums and studying, thought long term it's the way to go.
Just going to watch a while until I transfer my big one across from a Cash ISA that's doing 1.8%
Just going to watch a while until I transfer my big one across from a Cash ISA that's doing 1.8%
Still tempted to open an account the biggest thing putting me off is that I like seeing everything in one place but the platform fees make that pretty much a non-starter.
Thoughts on LifeStrategy welcome as there seems to be a lot of commentary about bonds being finished as a "safe" investment class.
Also how quickly can you withdraw money from Vanguards own platform either from the point of wanting to sell some funds or if it's cleared cash in the account.
Thoughts on LifeStrategy welcome as there seems to be a lot of commentary about bonds being finished as a "safe" investment class.
Also how quickly can you withdraw money from Vanguards own platform either from the point of wanting to sell some funds or if it's cleared cash in the account.
This was the thread that started me on my funds journey. Now got lots of money in these both with IM and Vanguard
ISAs, SIPP, GIAs and ltd company GIAs also as of yesterday junior ISA for my youngest
The gains since I started have been great and I held my nerve during covid.
Thank you pistonheads best move I’ve ever made and I’m still only 45 but wished I’d done more at 25
ISAs, SIPP, GIAs and ltd company GIAs also as of yesterday junior ISA for my youngest
The gains since I started have been great and I held my nerve during covid.
Thank you pistonheads best move I’ve ever made and I’m still only 45 but wished I’d done more at 25
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