The Lemon Fool

GeoffF100 wrote:

Itsallaguess wrote:
I think we see quite often that people point at the relatively simple strategy being employed by HYP-like approaches, and highlight that people could 'do better', but then fail to suggest a method by which to do so that is as simple to both start and maintain through many years and market-cycles.

Buy Vanguard Lifestrategy and go to sleep is one suggestion that people have made. Much easier than running a HYP.

Which one?

Why are there so many different Lifestrategy options if it's that 'easy'?

When do you sell?

Cheers,

Itsallaguess (owns some Lifestrategy....)

Itsallaguess wrote:

GeoffF100 wrote:

Itsallaguess wrote:
I think we see quite often that people point at the relatively simple strategy being employed by HYP-like approaches, and highlight that people could 'do better', but then fail to suggest a method by which to do so that is as simple to both start and maintain through many years and market-cycles.

Buy Vanguard Lifestrategy and go to sleep is one suggestion that people have made. Much easier than running a HYP.

Which one?

Why are there so many different Lifestrategy options if it's that 'easy'?

When do you sell?

Cheers,

Itsallaguess (owns some Lifestrategy....)

There are not many Lifestrategy funds. Just five, with equity allocations of 20%, 4%, 60%, 80% and 100%:

https://www.vanguard.co.uk/documents/ad ... ochure.pdf

You sell some whenever you need the cash.

GeoffF100 wrote:

Itsallaguess wrote:

GeoffF100 wrote:
Buy Vanguard Lifestrategy and go to sleep is one suggestion that people have made. Much easier than running a HYP.

Which one?

Why are there so many different Lifestrategy options if it's that 'easy'?

When do you sell?

Cheers,

Itsallaguess (owns some Lifestrategy....)

There are not many Lifestrategy funds. Just five, with equity allocations of 20%, 40%, 60%, 80% and 100%:

https://www.vanguard.co.uk/documents/ad ... ochure.pdf

You sell some whenever you need the cash.

You've not answered the 'which one' question....

Cheers,

Itsallaguess

Itsallaguess wrote:You've not answered the 'which one' question....

Vanguard says that the percentage of equities depends on your willingness, ability and need to take risk, and the term of the investment, and gives a chart. The FCA has rules on this for IFAs, and there are umpteen other rules and guidelines.

If this all is too hard, there is an easier answer (particularly as this is the Retirement Investing board). Use one of the Vanguard Target Retirement funds. In that case, you just choose the fund that is closest to your retirement date. Vanguard then decides the equity / bond allocation for you, and adjusts it as you age.

GeoffF100 wrote:

Itsallaguess wrote:I think we see quite often that people point at the relatively simple strategy being employed by HYP-like approaches, and highlight that people could 'do better', but then fail to suggest a method by which to do so that is as simple to both start and maintain through many years and market-cycles.

Buy Vanguard Lifestrategy and go to sleep is one suggestion that people have made. Much easier than running a HYP.

I agree easy but difficult to buy cheaply though. Let's put it into a SIPP. In H-L product plus wrapper costs will be 0.67% until you have £250k invested. In YouInvest it will be a combined 0.47%. Move away from a SIPP and in say an ISA with Vanguard combined costs will be 0.37%.

In comparison my total portfolio including all wrapper and product costs is 0.22%. With my time again I could now do it even more inexpensively.

Doesn't sound like much but on say £250k that's up to £1,125 going into the financial services sector rather than one's own pocket.

TheRIT wrote:

GeoffF100 wrote:

Itsallaguess wrote:I think we see quite often that people point at the relatively simple strategy being employed by HYP-like approaches, and highlight that people could 'do better', but then fail to suggest a method by which to do so that is as simple to both start and maintain through many years and market-cycles.

Buy Vanguard Lifestrategy and go to sleep is one suggestion that people have made. Much easier than running a HYP.

I agree easy but difficult to buy cheaply though. Let's put it into a SIPP. In H-L product plus wrapper costs will be 0.67% until you have £250k invested. In YouInvest it will be a combined 0.47%. Move away from a SIPP and in say an ISA with Vanguard combined costs will be 0.37%.

In comparison my total portfolio including all wrapper and product costs is 0.22%. With my time again I could now do it even more inexpensively.

Doesn't sound like much but on say £250k that's up to £1,125 going into the financial services sector rather than one's own pocket.

iWeb is much cheaper for a £250K SIPP holding open ended funds. Their annual fee is £180:

http://www.iweb-sharedealing.co.uk/char ... harges.asp

That is not great, but it is less than 0.1%. (iWeb does not charge a platform fee for dealing accounts or ISAs.) You can do better than iWeb for SIPPs, by copying Vanguard's asset allocations using ETFs with X-O, but that is not so simple.

If I were in your position I would not reduce the risk level.

Warren Buffett and his mentor, Benjamin Graham, think that moving into bonds as one gets older is a bad move.

A highly diversified equity portfolio plus about 10% cash, which you have, should deliver excellent returns over the next 10-20 years.