Vanguard Target Retirement 2035 Fund - Acc = any opinions?

[nickfrog]

Needing to invest £20k ISA now and £20k ISA next month.

I won't need to see that particular £40k tranche again until around 2035 so that seems to tick that box.

On going charges seem to be the usual 0.15% Vanguard and 0.24% for the particular fund: is that competitive?

Thanks a lot.

[chip*]

Fund fee is similar to other passive trackers such as BlackRock Consensus, HSBC Global Strategy Portfolio etc.., so it sounds within the right ballpark.

Don't forget VG retirement also have transaction costs too which range between 0.04% - 0.09% depending on your actual choice of fund (see below link)

https://www.vanguardinvestor.co.uk/content/documen...

[nickfrog]

anonymous said:

[redacted]

Yes it's a small tranche in a bigger retirement plan as we have sold our BTLs and are maxing out on pension tax relief allowance thing. 2035 corresponds to the time of our retirement when I foresee we might need to start drawing down on that tranche, which will be topped up to the tune of £20k/per year (if that remains the max yearly ISA allowance), for the years to come. I'll look at the lifestyle plans too, cheers.

[lizardbrain]

I have a chunk in this fund, I didn't do much research. The main draw for me, was the built in "Don't sell this before 2035" tag in the title of the fund.

[Gordon_Roslin]

These funds are obviously designed to be weighted greatly in favour of bonds as retirement approaches. I suggest alternatively that you go with one of their more aggressive funds; the era of bonds offering safe, steady returns is clearly over whereas governments around the world are showing that they are perfectly willing to endlessly turn the spending taps on forever in order to boost equities so why turn those greater returns down Frog? Especially if you are drawing down gradually, you'll be able to ride out any bear markets. You can get an 80/20 or 70/30 equity/bond split with Vanguard for the same money, why go for something more conservative?

[nickfrog]

Gordon_Roslin said:

These funds are obviously designed to be weighted greatly in favour of bonds as retirement approaches. I suggest alternatively that you go with one of their more aggressive funds; the era of bonds offering safe, steady returns is clearly over whereas governments around the world are showing that they are perfectly willing to endlessly turn the spending taps on forever in order to boost equities so why turn those greater returns down Frog? Especially if you are drawing down gradually, you'll be able to ride out any bear markets. You can get an 80/20 or 70/30 equity/bond split with Vanguard for the same money, why go for something more conservative?

Don't worry yourself too much with my choice of investment HumanDoing, it's part of a diversified strategy with plenty of aggressive stuff already. This thread was mainly about sense checking the on-going costs.

I may well not draw down on it anyway ; call it my Ferrari fund if you like, I really don't want the kids to pay IHT.

[red_slr]

I considered it as I am 55 in 2035 but I just went with VLS100 for ISA and whole world for SIPP.

[Gordon_Roslin]

nickfrog said:

Don't worry yourself too much with my choice of investment HumanDoing, it's part of a diversified strategy with plenty of aggressive stuff already. This thread was mainly about sense checking the on-going costs.

I may well not draw down on it anyway ; call it my Ferrari fund if you like, I really don't want the kids to pay IHT.

Don't know exactly what you mean by that Mr N Frog but I had an F40 and the service costs were a nightmare!! Be careful Sir I wouldn't want you to lose money unnecessarily.