Tim Hale’s ‘Smarter Investing’ Portfolios & Vanguard Life Strategy funds
Posted: April 19th, 2018, 9:58 am
I have a query for those who may be familiar with Tim Hale’s Smarter Investing book, which is regularly referenced on the LF.
Is it fair to say that his Smarter Investing Portfolio’s 2 to 5 defined, as they are, as ‘incremental steps in growth oriented assets of 20%”, are reflected in the Vanguard Life Strategy funds? i.e. Tim’s portfolio 2 (growth assets of 20% and defensive assets of 80%) is analogous to the Vanguard ‘LifeStrategy Income Fund’ (20% stocks and 80% bonds)?
If this is the case, is it correct to assume then, for a retiree investing a lump sum in the Vanguard LifeStrategy Income Fund and withdrawing £4,000 per £100,000 of starting capital (based on Tim’s figures in his portfolio details tables), there is a less than 1-in-10 chance of the retiree running out of money over 30 years?
Is it fair to say that his Smarter Investing Portfolio’s 2 to 5 defined, as they are, as ‘incremental steps in growth oriented assets of 20%”, are reflected in the Vanguard Life Strategy funds? i.e. Tim’s portfolio 2 (growth assets of 20% and defensive assets of 80%) is analogous to the Vanguard ‘LifeStrategy Income Fund’ (20% stocks and 80% bonds)?
If this is the case, is it correct to assume then, for a retiree investing a lump sum in the Vanguard LifeStrategy Income Fund and withdrawing £4,000 per £100,000 of starting capital (based on Tim’s figures in his portfolio details tables), there is a less than 1-in-10 chance of the retiree running out of money over 30 years?