Which S&S ISA for a 10 year savings period?

[Linguaphile]

We are looking into options to save for our kids. We have some inheritance funds that we’d like to put into a S&S ISA, and then top that up in future years with monthly savings.

Can anyone recommend a good low cost passively managed index fund? We’d like to be able to access the money in maybe 10 years once our children start going to university, so I’d say a low to medium risk profile. Looking into Vanguard Lifestrategy. Any others we should look at?

I would suggest vanguard too! Suggest you look up the Rebel Finance School for articles and more information.

Low to medium risk you would probabaly be good with Lifestrategy, as it has a ratio of equity to bonds (I think the number is the ratio of equity, so Lifestrategy 60 is 60% equity).

If you are low to medium risk, then Lifestrategy 40 or 60 is probably about right?

I am with Vanguard for my S&S ISA however I'm invested in Global Equity. I've set it up for a monthly amount and just let it run.

@Alarae Yes, the LS60 is the one I was looking at! We just want something that we can set up as a monthly direct debit and then forget about.

[quote Linguaphile]@Alarae Yes, the LS60 is the one I was looking at! We just want something that we can set up as a monthly direct debit and then forget about.[/quote]
Vanguard LS funds are UK biased, so if you want more of a global view, then they aren't the ones to choose. Look at HSBC, Fidelity, Blackrock for other options

They all offer similar type funds, with varying geographic biases, you takes your pick as to what you prefer

@Residentnumber1 That’s helpful, thanks. I noticed that so was also looking at HSBC’s All World. The fees look lower for that as well...? Will do some research.

Think they are marginally lower. I have money in HSBC All World and HSBC Global Strategy balanced, as that is more multi asset

[quote Linguaphile]@Residentnumber1 That’s helpful, thanks. I noticed that so was also looking at HSBC’s All World. The fees look lower for that as well...? Will do some research.[/quote]
Look at the cost of access too. Vanguard will have no 'platform' cost. Use Hargreaves and you'll pay 0.45% on top of the fund fee

The HSBC’s All World is also US biased.

It's also a sampling fund with derivatives. This is quite a different beast to Vanguard

@Weirdlynormal

It's also a sampling fund with derivatives. This is quite a different beast to Vanguard

Can you explain what this means to a noob please?

Following

@Weirdlynormal

It's also a sampling fund with derivatives. This is quite a different beast to Vanguard

Does that mean a higher risk level than a vanguard lifestrategy?

@Weirdlynormal I didn’t realize that!

@whataboutbobI think it probably does mean they’re riskier in some ways. As I understand it, synthetic ETFs try to replicate what physical ETFs achieve in terms of tracking the index by holding things like swaps and collateral instead of actual securities, so the value actually depends on people paying up like they’re supposed to (which I think some banks struggled to do in the 2008 crash). My financial literacy is limited though, so I could be wrong!

That makes sense @Linguaphile. I’ve listened to a lot of Pete Matthew’s Meaningful Money podcasts and he’s not keen on synthetic ETFs ( for what that’s worth, but his judgement seems good in many cases). Your financial literacy is a few steps ahead of mine!

Here’s a thought, what about choosing a target retirement fund with an end date around the 2030 year mark? Is that a terrible idea? 🧐

I have an account with Vanguard and I invest in "FTSE Global All Cap Index Fund Accumulation" fund. The fees are just 0.23% annually, I'm doing quite well with it at the moment.

Op jl Collins, simple path to wealth, his book is about vanguard and their funds, being owned by the investors, spread everywhere etc...

Fire group on fb also advocate vanguard

Phased, can you give us a %

As example I've not moved all my funds to vanagurd yet but my isa is running between 25% and 35% and that's during lock down etc

I keep a 3 month emergency fund in cash, in an instant access savings account, the rest I put into my ISA.