Maybe we can unite the historic threads in to one but...
Todays question; my Vanguard Lifestrategy funds seem to have dipped a bit this week leaving me at 2% loss, this may seem obvious to an expert but for the layman; is this the time to invest some more e.g buying on the cheap a little? Or is there a correction coming and its bet to wait a bit longer?
My layman's opinion is that all the money since Covid has shifted into non-impacted & growth stocks, e.g. away from travel, retail etc and into technology, renewables, crypto etc. There will be some disruption while investors choose the right time to switch some money back to those suppressed stocks ready for easing of lock down. *Probably* best to leave the experts to it and wait for funds to pick back up.
Nobody knows, that's the whole point. If we knew then we'd be off MTBing in Oman or somewhere at this point, not skivving off our tedious IT jobs reading Singletrack.
Depends if you want to invest or trade. If the former then get it in whenever, but asap. If the latter then wait for it to go down.
I've been playing the drops the last year and am 25% up, but accept that trading is a fools game. Everyone knows that including Buffet. But it's fun, so I do it.
PS, if you want to unite the threads then why didn't you post on one if the existing ones, instead of creating yet another one?
Also, in answer to your question
seem to have dipped a bit this week leaving me at 2% loss, this may seem obvious to an expert
If you were investing properly according to various experts, you wouldn't even know you were 2% down. Can't recall exactly, but the maxim is
count your shares every five years, your bonds every year and your cash every week. Or something.
But basically ignore the short term noise.
PS. I don't follow this advice as it's loads of fun.
2% loss overall? Did you purchase the units recently?
In my experience of the past year, I'd say keep buying monthly if you have spare cash to invest. It's a long-term investment so you aren't gambling on short-term movements.
Buying the dips can work well for individual shares but if you are investing in large global trackers then probably pound-cost averaging via a regular monthly sum is best.
What will share prices do? Fluctuate. Anyone who tells you they know otherwise, better be a multi-billionaire.
If people are not comfortable with fluctuation then investing in shares might not be a great strategy for them or else check the performance less frequently!
Wot thegeneralist sed.
But, as you're talking about buying (and by that I mean investing, i.e. buying units and forgetting about them for ten years), not selling, if you can afford to, why not? Not because of the 2% 'drop', but because, if we're trotting out maxim
the best time to invest is ten years ago, the second best time is now
I have a question about SIPPS and funds.
I have money in a few old company pensions that I want to move into a SIPP, as I think a fund such as a Vanguard Lifestrategy 60 will do better than my existing pension funds. Meanwhile I'm still paying into a company pension, which will be separate. I'm 40 so perhaps not much more than 20 years from retirement.
So let's say I have 100k to transfer - would it be wrong to lump it all in one diversified fund such as Vanguard LS 60, or spread it further into several funds.
I don't want to do regular buying and selling, but I will be checking growth monthly.
What do you think?
Well, for me this is a small pot of money as "savings", with at least 10 years until I'm 60 to run. The 2% loss is over a 9 month period - it was 2% up before Feb. Yes I'm guilty of looking at it frequently...
I don't want to dabble, I just got nervous and have a bit of other savings in an account paying 0.01% which I could move today, and split across the two Lifestrategy funds I have (60 & 100).
What do you think?
If you want to stick with Vanguard you could also use their Target Retirement fund which shifts risk downward as it gets toward your project withdrawal year.
Vanguard LS 60 is incredibly diverse and contains multiple trackers funds, each of which contain hundreds of individual investments:
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-60-equity-accumulation
If your strategy is to invest in 60% share & 40% bonds diverse tracker then you would have no need to further diversify into multiple funds my opinion.
Whether this is the correct strategy is another question!
However, consider transferring 5K or 10K at a time. If you transfer 100K at once and the market drops 10% then you’ve lost 10k.
not skivving off our tedious IT jobs reading Singletrack
Get out of my head!
If you want to stick with Vanguard you could also use their Target Retirement fund which shifts risk downward as it gets toward your project withdrawal year.
depending on what you want to do when you retire, this might not be the best option. The risk reducing funds were great when everyone bought an annuity as it avoided the risk of pulling all your funds out on a day\month when things are looking bad - however if you're going to target a drawdown strategy, it makes sense to leave your funds in riskier\higher earning pots until the day/month you choose to withdraw them.
note that is is still sensible to de-risk your 25% tax-free lump sum (and to do so, you might want to actually de-risk about 30% of your fund as it'll grow slower than the rest over the last few years) - as that is all taken out in one big bump.
If you transfer 100K at once and the market drops 10% then you’ve lost 10k.
He still lose 10% in his company pension ?
If you are wanting to lower your fees/take control yourself .... just get it done.
Target Retirement fund which shifts risk downward as it gets toward your project withdrawal year.
If you think that you'll not have very long in retirement.... Me, I want my retirement money still growing for 20/30 years
Good luck
not skivving off our tedious IT jobs reading Singletrack
Get out of my head!
🤗 Found it.
Thanks for your comments.
Vanguard Lifestrategy funds are all overweight the UK (17% IIRC), and our economy is $a bad joke, hence the drop over a period when globally markets have been on an absolute ripper.
My SIPP has returned almost 20% since this time last year,
It's with IM and is across 5 of their funds.
I was told to diversify and hold and it's worked for me.
Massive market correction imminent IMO, but ETLs and the like should be about long term investment. It's very difficult to time the market so conventional advice is to buy regularly which will flatten out peaks & troughs and leave with with a sustained average increase.
That said, with it coming up to FYE, it may be worth putting some extra cash in to the fund (assuming it's an ISA) and leaving it as cash to buy more units as & when you feel is the best time.
Massive market correction imminent
Seems like folk have been predicting that for years.
March was the "Market correction" but now that it's recovered, there is a "Market correction due"
I would agree though, forget checking it every day and get in for the long term. It's not trading.
our economy is $a bad joke, hence the drop over a period when globally markets have been on an absolute ripper
Really ? not on my balance sheet. The UK economy is anything but a bad joke.
As they say, it's time in the market not timing the market that wins the day. Little and often ignoring market fluctuations
“There are two types of investors, those that can’t time markets and those that know they can’t time markets”
If you’re portfolio is setup / diversified for your risk tolerance and financial objectives, forget about it and just keep buying monthly (aka pound cost averaging).
Really ? not on my balance sheet. The UK economy is anything but a bad joke.
We can agree to disagree on that. My global excl. UK trackers are probably up >10% on my incl. UK ones this year.
But I don't pick individual stocks, so perhaps that is where we differ.
Or is there a correction coming and its bet to wait a bit longer?
Don't sweat the random little swings.
Investing is a 5 year plus thing.
and our economy is $a bad joke, hence the drop over a period when globally markets have been on an absolute ripper.
You seem to be suggesting buying the thing that's already a the top of the market. Classic investment psychology mistake.
Diversify, keep low cost, buy and hold.
You seem to be suggesting buying the thing that’s already a the top of the market. Classic investment psychology mistake.Diversify, keep low cost, buy and hold.
Thanks for the investing tips. Don't think I've ever heard those before.
Buy low, sell high is the other mantra, right 😉 ?
2% dip? Pah, last March I was several £100k down when the markets dipped. I did absolutely nothing about it and a few months later the markets recovered and went a lot higher. Just sit back and enjoy the ride. Investing for retirement is a long term game...
Just checked in on my monies and am saddened/shocked to see that I'm ~8% down on two weeks ago. A decent chunk of money.... Where'd it go?!?!
Although was "happy" to see that pretty much all the funds on my watchlist are in a similar position.
Still hurts.
Just checked in on my monies and am saddened/shocked to see that I’m ~8% down on two weeks ago. A decent chunk of money…. Where’d it go?!?!
Sorry - think that's my fault. I was planning on pulling some money out of my investments this month. Naturally that caused the the prices to plummet just before I do...
Sorry – think that’s my fault. I was planning on pulling some money out of my investments this month
I'll send you an invoice.
Just checked in on my monies and am saddened/shocked to see that I’m ~8% down on two weeks ago. A decent chunk of money…. Where’d it go?!?!
10 year bond rates have gone up a bit, which means people worry / panic that equities will come off the boil - hence you get a dip in equities. It's just part of the normal ebb and flow of the markets.
It’s just part of the normal ebb and flow of the markets.
Yeah, I'm not wetting myself just yet.
In March/April 2020 I was down ~25% on Feb 2020. I was a little upset then. However, now (or rather was!) up 46% on April 2020 (now 42%).
Only looked as I need to show the German citizenship office what I have in the way of assets. Should have screen shotted last months total. 😂
Thanks for the investing tips. Don’t think I’ve ever heard those before
There's hearing and there's listening.
After a couple of recent threads on here I'd be interested in any further thoughts on moving some or all of my DC pensions into SIPPs. Presently I have two main ones roughy equal amounts in Standard Life and Aviva. I'm shovelling as much cash as I can into them for the tax breaks and the hope of an early and comfortable retirement (I'm on track for this, I think)
Also after recommendations on here I bought 'smarter investing' by Tim Hale and wholly agree with the approach he recommends (diversified low cost trackers, buy and hold)
Regarding moving away from Aviva and Standard Life, any thoughts on whether I could expect better returns from a market tracking SIPP ? (e.g. due to lower costs) I haven't researched their performance vs. the market yet.
Also any top tips for not messing it up if I do move some/all the cash? I'm fairly nervous about potentially being responsible for screwing my own retirement plan up!
Working in insurance looking after IFA’s etc the number of SIPP funds which have just exploded and disappeared with savers losing everything is scary. Some of course are protected by the FSCS, some are not. However as a rule SIPPs are not suitable for people with their sole pot of retirement money in them.
I wouldn’t go anywhere near one…
I have a slug of shares I keep for income, mainly ex employee shares so bought at a discount and the cumulative divis must exceed the purchase price.
So I used to look at the prices a fair bit, on good days I thought I was some sort of investment God for keeping them, on bad days stupid for holding.
Now I only look every year when I complete my tax return, it's a pension product and bought for income, which it achieves.
Its a bit like an investment property, if it delivers what you bought it for then it really doesn't matter what it is worth.
However as a rule SIPPs are not suitable for people with their sole pot of retirement money in them.
That's just utter nonsense..
A SIPP is just a tax efficient wrapper for a pension and has zero risk associated with it as the SIPP wrapper has no bearing in what you hold within it.
The risk comes from what you choose to invest in within the wrapper, if you stick everything on an unregulated mini-bond for a development in the Bahamas guaranteeing 8% return, then yes you'll probably lose everything. Unregulated mini-bonds are currently the most popular way of loosing all your savings.
If, on the other hand, you buy a range of main market trackers through regulated providers your SIPP is as 'safe' as any other money purchase pension scheme.
The basic investment rules are simple and don't differ for pension types. Diversify your portfolio, so if one investment does go tits up, you don't loose it all. Invest in sensible low risk regulated assets eg Trackers / managed funds with the big providers. Make sure everything is FCA regulated. If anything sounds too good to be true, it's because it is.
I'm 70% up since this time last year (pre covid) Markets have stalled a bit recently. Would have been a lot more up if I'd have just bought Tesla.
Pictet Robotics has been a great fund for me. Argo Blockchain been brill recently though I got in relatively late.
El boufadour your existing pension providers are likely to have low cost, diversified tracker funds e.g. Standard Life myfolio market. Moving into a sipp is unlikely to be cheaper.
Working in insurance looking after IFA’s etc the number of SIPP funds which have just exploded and disappeared with savers losing everything is scary. Some of course are protected by the FSCS, some are not. However as a rule SIPPs are not suitable for people with their sole pot of retirement money in them.
I wouldn’t go anywhere near one…
Care to name any of the ones you are talking about ?, because what you have said is basically rubbish.
Care to name any of the ones you are talking about ?, because what you have said is basically rubbish
I am interested in this as well! I have the majority of my Pension provision in one and share @footflaps understanding of what they are and arent!
So now I’m in a quandary. My NS&I ISA paying 0.1% can now be moved, my first thought was to move it to a Vanguard ISA, then use the Vanguard ISA as this years savings account.
However, I’m wary of putting everything in one pot so to speak e.g. Vanguard but equally don’t want lots of accounts floating around.
I wish the NS&I Green bonds were open with a decent rate, anyone heard any rumours to that effect?
I’m wary of putting everything in one pot so to speak
If you set up an ISA through a fund supermarket like Interactive Investor, AJ Bell, Hargreaves Lansdown, etc, and then invest in individual funds within that (which can include Vanguard funds), you own the investments so are protected if the supermarket goes down. But going direct to Vanguard saves you one set of fees.
Fees are important. The difference between 1% and 2% may not seem much but it's compound interest in reverse - losing 1% a year for 20 years, you're 18% down. The supermarkets have different fee structure, some are a percentage, some are a flat fee, so which works best depends how much you're putting in.
ignore. got my compound interest calculations wrong 😀
you own the investments so are protected if the supermarket goes down.
A good point I forgot about this, maybe safer to stick with Vanguard then on the basis of its single fee.
