Vanguard Lifestrategy

[MamaLlama123]

Hi would this be a sensible option for retirement saving using a stocks & shares LISA (i’m considering using HL platform)

I am considering investing the max £4k per year

Anything to consider?

Does anyone have any experience of this for LISA, Stocks & shares ISA, junior ISA?

Any alternatives to consider?

Looking primarily for ease as a beginner
Thanks

i’m considering the Vanguard Lifestrategy 80^

80% equity is fine if you are nearing retirement but if you are young then you could have many decades of investing before accessing the money so have time to ride out the volatility of a 100% equity fund.

You could always do some of both, so having an overall allocation of around 90% equities by having two funds, the 80% equity lifestrategy fund and a 100% equity fund (FTSE Developed World or some other world tracker).

For a child Junior ISAI would go full equities, as even when they get to 18 with luck they would put a lot of it into an ISA and continue investing.

Equities provide the returns. Bonds/Gilts/Property gives some smoothing, least that is the general idea.

Getting started is the most important thing. So starting with one fund, the 80% Lifestrategy, then do that for a year or two. You can always change things later.

I have a lot of money in this fund , happy so far .

Vanguard is a great platform and low rates.
The Lifestrategy products have a bit of UK exposure. If you’re happy with that then this is fine.

thank you for this advice

so would this mean i just use the vanguard lifestrategy 100% option instead? (i am age 35)

and then change the fund to a vanguard lifestrategy 80 or 60 around age 50. is this simple to do?

is it straightforward to invest 50/50 in each - the Lifestrategy 100 and also 80

thanks what could be the issue with uk exposure?

I hold VLS100 and the UK bias is one of the things I like about it.

what do you mean with the UK bias - why would people be for/ against this?

What was your reason for choosing the VLS100 over the others

Also if I was to choose VLS100 and then there was a huge dip/ crash - is the key then just to wait? and once recovered, move funds to VLS60/ 80 as approaching retirement age?

Lifestrategy are good funds, it as others have mentioned they have more U.K. exposure than pure market capitalisation would warrant (25% exposure vs 4-5% if it was proportionally balances).

80/20 equities is a good balance unless you’re very close to retirement.

Is Lisa the best model, or should you open a SIPP?

I am also paying into an NHS pension (access age 68 or State pension age) and AVCs via Prudential which can be accessed age 57

The above will be taxable

I like the appeal of LISA due to not having to pay any tax on this pot when i can access it age 60. i think with a SIPP - this would be taxable

does this sound like a good decision

Everyone - what are alternative but similar options to a Vanuard LS - with less UK exposure?

Any global tracker, eg https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/fidelity-index-world-class-p-accumulation. They don't vary much so pick a cheap one.

Global trackers hold assets in proportion to market capitalisation. That means that they all have around 70% of their holdings in the US (https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BJS8SJ34-fidelity-index-world-fund-p-acc/portfolio). Whether this is what you want depends is up to you-

• some people think the US stock market is overpriced- yes there was an apparent correction recently but it's almost back where it was. Europe and the UK look much better value.
• some people worry about how much of the US market is in just seven stocks (MS, Apple, Meta, Alphabet, Nvidia, Tesla, Amazon) which are likely to move together
• some people worry about the Orange One and his tariffs and whether there is still more volatility to come

etc etc. On the other hand, plenty of people are happy with having 70% in the US. For one thing, it's done brilliantly over the last few years. Yes it's dominated by tech but that's just a reflection of the value of tech and how far it still has to go. And while Europe and the UK may seem better value, people have been saying that for years and it has yet to translate into significant growth.

So maybe we're at the start of a rotation out of the US, out of tech and towards more defensive stocks (like consumer staples). Or maybe not. If you think we are, you might prefer something VLS100- less exposure to the US and more to the UK. If you think we're not, a standard global tracker will suit you better. Or you could have a bit of both.

Anyway, tldr- there's something to be said for a global tracker. There's something to be said for VLS100. Either choice will almost certainly be fine as long as you are happy to buy it and forget about it.

Also if I was to choose VLS100 and then there was a huge dip/ crash - is the key then just to wait? and once recovered, move funds to VLS60/ 80 as approaching retirement age?

Yes, you just ride out the dips. That's why it's not recommended to plan to hold shares for less than 5 years. What to do in the run up to retirement depends on a lot of factors- do you plan to buy an annuity or to draw down? Do you have other sources of income? What's your attitude to risk? How much do you plan to hold in cash etc etc. Yes, you'll likely be moving out of equities and into fixed income/cash to some extent but what that extent should be depends on all sorts of factors.

The Meaningful Money podcast is really good on all this and I believe that one of the presenters has a book on retirement planning which I imagine would be worth reading (haven't read it myself but he gives good advice on the podcast)- it's too big a subject to answer on MN.

Look at a low cost global tracker on a platform with no or very low fees

https://www.trustnet.com/news/13446252/vanguard-lifestrategy-100-equity-vs-fidelity-index-world-which-global-tracker-is-best There's some more here on VLS v global trackers

When nearing retirement you would start to reposition, such as building a cash buffer and changing your mix.
Look up info about Cashflow Ladder.

Hi again,

Hmm. The UK is possibly not in great shape these days.

I’ve got (with Vanguard):

60% FTSE All World (VWRP)
20% S&P (VUAG)
20% Global Bonds (Global Bond Index Fund - Hedged Accumulation)

But - massive disclaimer - I am not an IFA or any sort of an expert. Just a thoughtful punter.

VWRP gives me broad and diversified exposure to about 3500 stocks from a wide range of markets and sectors - including the S&P.

VUAG gives me a stronger skew to the US.

The global bonds dampen down some risk/ volatility and are currency-hedged to the £

NO sort of an expert but this feels the right balance for me.

I am 54 and have LS80, but looking to change to LS100 and a bit of Developed World (ex uk). I still have plenty of years for investing, so have decided to be a bit more risky

@MamaLlama123 the important thing is to get your money into the market. LS100 or LS80 or a mix of trackers, won’t matter massively at age 35. You can switch things about as you become more knowledgable but LS100 is a great start.
I have 3 main funds (which together are pretty similar to the LS100) so I can manage the weighting and get the balance I prefer between USA, UK, emerging markets etc. . Interestingly my U.K. fund has performed the best over recent months. But that can all change tomorrow & that’s why you don’t put all your eggs in one basket but spread it around a bit - diversify. Which is what the LifeStrategy funds do for you. They’re very good and I had the ls100 when I first started investing a decade or so ago.
Have you chosen a platform for your S&S LISA? Rebel Finance on YouTube go through the various options and are worth a watch.

I wish I understood the first thing about all this . Where can I find an idiots guide?