Vanguard Lifestrategy

[bitchstewie]

Does anyone here have an account directly with Vanguard please?

If so could you give me a rough idea how it works around adding money, and buying funds?

I'm familiar with how fund platforms work so I'm asking more about speed and ease of use for example I wake up tomorrow and decide with buy £200 worth of LifeStrategy and my cash balance at Vanguard is zero, what happens?

How long before the fund purchase typically shows up?

Ditto selling and withdrawing cash.

[ILikeCake]

I have an account. It is pretty much like every other platform I've used or seen.

Purchasing-wise you can either add cash which takes a day to show as 'useable', or purchase funds directly with a debit card which is immediate.

You can choose to buy now if the market is open or at the next dealing point.

Never sold anything so can't comment on the other end.

[bitchstewie]

Thanks

I asked as when I've purchased Vanguard funds on other platforms they've taken a few days to show whereas almost any other fund on the same platforms seems to go through the same day or a day later on the odd occasion.

I'd hoped it might be a bit quicker going direct.

I know it's a psychology thing and funds aren't priced and dealt in real time before anyone says

Anyone made a jump from active to passive?

[anonymous-user]

bhstewie said:

Thanks

Anyone made a jump from active to passive?

I've not made the jump as such as I've been in passive so far, but I have thought about it quite carefully and watched quite a few of the interviews with Jack Bogle where he discusses the logic for passive investing. Personally, I'm convinced, passive is the optimal way forward for me at least.

[768]

I've found it quite slow, adding cash and hitting invest, I'm sure it's taken longer than a single day to show up, I doubt it's significantly quicker direct that what you've experienced. I think that's ok for passive though.

[river_rat]

I pay in every month to a LS100 fund - direct debit leaves my bank on the 1st day of month, on the 2nd Vanguard have completed the purchase.

[BlackG7R]

EddieSteadyGo said:

bhstewie said:

Thanks

Anyone made a jump from active to passive?

I've not made the jump as such as I've been in passive so far, but I have thought about it quite carefully and watched quite a few of the interviews with Jack Bogle where he discusses the logic for passive investing. Personally, I'm convinced, passive is the optimal way forward for me at least.

I'm also been convinced by John Bogle's (and J. L. Collins Simple path to Wealth) that Vanguard and passive are the way to go.

I've stopped putting any further money into active funds, and as the opportunities arrive I'll be transferring everything gradually into Vanguard funds where possible.

[FredClogs]

I'm waiting for their sipp offering to go live and I suspect I'll make the jump.

[mx stu]

I've just (this lunchtime) started the process of transferring the kids junior ISAs across to Vanguard.

Had a quick call with someone there as I had a couple of questions on things not obvious from the website. Got through quick and chap was knowledgeable, no I'll have to check that or I'm not sure (granted they weren't the most technical questions in the world).

Started the transfer process and as such now have access to the platform. First impressions very clear and looks straightforward to add funds, deal and also monitor performance over period of your choosing.

[bitchstewie]

What have those of you who have existing active investments done?

Especially if those investments aren't really doing anything wrong.

New money only?

[ILikeCake]

bhstewie said:

What have those of you who have existing active investments done?

Especially if those investments aren't really doing anything wrong.

New money only?

I've been passive only for about 6 years. Used to try and pick shares but fortunately saw sense before too much damage was done.

When switching over I had the same feelings of not wanting to realise a loss on some shares, and also not wanting to move ones that had done well and I was convinced would go on to do better.

It helped me by imagining all my shares etc were one pot of cash and wasn't invested in anything. What funds would you buy if your pot was all cash? If you wouldn't buy the active funds you're currently in, than I think it's time to sell.

Caveat of tax implications of selling etc.

[chip*]

Large proportion of my portfolio are already in passive funds with a majority chunk in Vanguard LS. Also have a significant active holding too (from proceed selling my Woodford holding in 2016, and pretty pleased with my decision too) which has performed very well, but it's a fairly risky holding and the fees ain't cheap. Depending on the conclusion of my financial planning exercise, it's possible I may hold unnecessary risk, if so, I would de-risk my entire portfolio, and at the very least convert my remaining active holding to passive. If so, Vanguard LS would be high on my hitlist for my re-investment.

[anonymous-user]

We have a fair old chunk in VLS 60, some VLS40 ... Return across the board is over 10% over the last few years

I'm always chopping and changing and the online service is pretty good.

Any questions just phone them. The customer service is brilliant.

[bitchstewie]

ILikeCake said:

I've been passive only for about 6 years. Used to try and pick shares but fortunately saw sense before too much damage was done.

When switching over I had the same feelings of not wanting to realise a loss on some shares, and also not wanting to move ones that had done well and I was convinced would go on to do better.

It helped me by imagining all my shares etc were one pot of cash and wasn't invested in anything. What funds would you buy if your pot was all cash? If you wouldn't buy the active funds you're currently in, than I think it's time to sell.

Caveat of tax implications of selling etc.

One of the difficulties I've found with active is that the funds I hold are funds I would buy now but as you know the active universe is so big I think you have to be quite disciplined not to end up with a rag tag bunch of funds and trusts.

That's one of the things that does appeal about something like LifeStrategy in that there's no thought required and no need to think too much about balancing between risk or defence when adding new money etc.

[bitchstewie]

chip* said:

Large proportion of my portfolio are already in passive funds with a majority chunk in Vanguard LS. Also have a significant active holding too (from proceed selling my Woodford holding in 2016, and pretty pleased with my decision too) which has performed very well, but it's a fairly risky holding and the fees ain't cheap. Depending on the conclusion of my financial planning exercise, it's possible I may hold unnecessary risk, if so, I would de-risk my entire portfolio, and at the very least convert my remaining active holding to passive. If so, Vanguard LS would be high on my hitlist for my re-investment.

Yes it seems like the "can't go wrong" option if you don't want to be wondering whether you'd have done slightly better/worse with a different passive product.

Which platform(s) are people using please?

Vanguard direct seems to make the most sense as any platform with no platform fee usually has dealing fees and I want to be dripping in almost weekly or even daily.

[mx stu]

bhstewie said:

Which platform(s) are people using please?

My SIPP is with AJ Bell Youinvest. Can't remember why I chose them but have been with them for a long while and have no complaints.

I "re-balanced" earlier this year (March) after transferring some other pension pots in and brought a chunk of LS80. The return on that has been 4.35% over that period and is ahead of Fundsmith Equity I (3.28%) and Lindsell Train Global Equity (0.69%) (also in a couple of other funds but those are my three main ones).

With Youinvest the dealing charge is £1.50 for funds and those three all have 0% entry/ exit charges. The ongoing charges are 0.95% for Fundsmith, 0.65% for Lindsell Train and 0.22% for LS80. LS80 has a risk rating of 4 out of 7 (versus 5 for the other two).

Just writing that has made me realise how well LS80 is performing for the cost....

[bitchstewie]

mx stu said:

My SIPP is with AJ Bell Youinvest. Can't remember why I chose them but have been with them for a long while and have no complaints.

I "re-balanced" earlier this year (March) after transferring some other pension pots in and brought a chunk of LS80. The return on that has been 4.35% over that period and is ahead of Fundsmith Equity I (3.28%) and Lindsell Train Global Equity (0.69%) (also in a couple of other funds but those are my three main ones).

With Youinvest the dealing charge is £1.50 for funds and those three all have 0% entry/ exit charges. The ongoing charges are 0.95% for Fundsmith, 0.65% for Lindsell Train and 0.22% for LS80. LS80 has a risk rating of 4 out of 7 (versus 5 for the other two).

Just writing that has made me realise how well LS80 is performing for the cost....

Yes I have around 20% across those two.

Fundsmith has done very well for me.

Lindsell Train has also done well but as you highlight it's taken a bit of a short term kicking recently.