Latest video here looking at whether you should ditch these Lifestrategy funds in favour of an active approach ruclips.net/video/dqjlc1WYLnE/видео.html
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@MarcelPhilips Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
All my family have been poor, all retired with nothing. I don't wanna be that person. It's hard to make money on low wages but trying to learn. Thanks for the advice
The very fact that you’re watching, trying to learn and gather information means you’re on the path to success. You can do it. Keep going and good luck.
@@ThatFinanceShow Yes, but I wonder why do ppl use lot of vanguard funds in different platforms like HL or II and pay more platform fees just so u can have different few funds.
You are giving great content, I’m interested to start investing but never find a good explanation of the things on vanguard till Now that I find your content.. you did give a dip info that I didn’t even find in the website. Looking for more in your site to understand about investing. Thank you and got bless you!! 👏👏👏 BRAVO
Just one thing, I'm not sure if this is what you meant but it's not minimum investmentS. It is a minimum initial investment, that £500 is a minimum invest to start off your ISA Account, or when you open it, you agree to a monthly direct debit of £100. Once you've made one investment of over £500 and your portfolio is going, you can then buy into another index fund or ETF for say ... £283, if that were the unit price. However, Vanguard advises not to make investments of
@@ThatFinanceShow No problem. It can be confusing, because if you had say 5 funds, and only wanted to deposit £300 a month, you can't do either a minimum one off of £500, or put more than £100 in each. This is the communication I had from Vanguard: " Thank you for your message and I hope you are well. The £500 or £100 monthly direct debit is just to set up the account. We strongly recommend clients invest a minimum of £100 per an order as small orders can be negatively impacted by unit rounding. For the S&P 500 this is an ETF so only trades in full units, this is why there was cash leftover and there isn’t a fee for trading using the ‘Next dealing point’ option. " P.S. I subbed, good content. Keep it up.
13:19 About the rebalance on Equity and Bonds , is this relevant for the LifeStragegy 100% fund? As I currently know Bonds are not included in this with it being 100% Equities. Basically, is rebalancing by selling and buying included in this 100% fund?
Hey, yes it will still be rebalanced to the different allocations in each fund that makes up the Lifestrategy 100 to keep it in check to that desired mix. Hope that makes sense
Hi Colin, thanks for the comment. Hard to have a 'favourite' as such as they all do such different things. You aren't really comparing apples with apples, you cant compare a fund that invests in US companies to one that invests in UK bonds for example. If you are looking for one fund to cover all bases in a portfolio, these lifestrategy funds are an interesting option.
Great video - I’m considering Vanguard for 2021, low fee structure is attractive but UK bias is off putting for life strategy - So would want to build my own portfolio of funds. But was hoping to set up accounts for the full family on one platform, but they don’t allow transfers in of CTFs to JISAs which is a real pain.
Thanks for the comment. Yes I think the home bias are their biggest drawback. Given where the FTSE is though...could it actually be a short term advantage?
When colleagues express a mild curiosity in FIRE, but it's clear they're not interested in 'doing the work', this is one video that keeps coming to mind... Flattery aside, I suppose it does make sense, even for someone on say a 10-year timeline to use this as a 'harm reduction strategy' as their portfolio draws close to maturity?
Still thinking it's probably a good thing at this time to have a UK bias: the P/E for the FTSE is low compared to the S&P, which makes me think growth will be healthy in UK big caps. Interested in your views, I hold LS100 and VG All Cap equally because I really can't decide. I'm a little put off by the ETF version of the AllCap as, because it is managed in Ireland, there are some questions about withholding tax even when in an ISA. Just adds uncertainty for me. Also, with any platform it is a good idea to check how quick they are at liquidating investments and returning to your bank account, as that for me is something we only generally find out later in our relationship with a provider. Just sell a small amount and request withdrawal to your bank acount to check how responsive they are.
Interesting thanks. Yes there’s a lot of argument for value in the UK. It certainly hasn’t recovered like the US. I like the lifestrategy 100 because I’ve got plenty of US focus elsewhere so it balances out. Thanks for watching and the comment.
Hard for me to say Leslie without knowing wider circumstances and I can’t give advice here. The Lifestrategy range are a great place to look, but if you are truly low risk, you might still want less than 80% equities.
Hey, great video - really informative and good for beginners. You mentioned at one point about Vanguard having the Stocks and Shares ISA accounts as well. Can you manage funds in and out of the Vanguard Lifestyle/Global Balanced Fund through the Socks and Shares ISA account to benefit from the tax relief? I.e. if I wanted to have both accounts as different sources of investing can I run them out of one Stocks and Shares ISA account?
Given that markets have performed extraordinarily over the past 5 years (the LifeStrategy history looks excellent), what is the future? Is not a good time to invest? Given all the money being pumped into the economy at the moment? Also, let's say I have £10k to invest, shall i stagger that into the fund over a period of months, or just shove it all in one go, now? Really enjoyed the video - ATB :)
If you’re investing for the long term (which you should be) it’s about time in the markets, not timing the markets. More people have lost money waiting for a correction. Ftse 100 as an example is still not back to pre COVID levels. You could stagger, it may help to lower risk but if markets do well in the short term you’d have lost out. Research pound cost averaging or dollar cost averaging. Thanks for the comment and best of luck with it all.
Good video which explains it all so well. Thank you. Just a question 🙋🏾. I recently opened a vanguard account and isa this week. For the new financial year, do I have to open another isa, or will it automatically reset and adjust to my 20,000 allowance? Does that make sense?
If you are a beginner and go for one now will you regret it later when you become more conversant with investing. Are these really automatons for those who don't want the hassle of digging any deeper?
Hi there, thanks for the comment. The reality is a lot of people don’t want the hassle of digging deeper and just want a set and forget style investment strategy.
I think I’ll go for the Life Strategy 100 or possibly 80/20. Personally I’m happy to go for the home bias and even though most RUclipsrs keep going on about how weak the UK economy is these funds seemed to have performed quite well over the past 8 years despite the media saying how terrible things have been since Brexit.
Agree, even the 60/40 LS averages nearly 5% in 5 years. Nearly 7% over a 10 year period. Isn't bad at all really. People get greedy and want 10% or more.
Great explanation thank you. I was hoping to open an account with them as I receive income in the UK but live overseas (remote working). Doesn't look they offer global index funds for expats does it? UK residents only in T&C's 🙁 Is there a similar company with such low fees for non-UK residents (UK citizen)?
Excellent video. I have two Vanguard Index Funds (US Equity and Emerging Markets). I am also interested in a lower risk fund, with bonds. I am considering Life Strategy 60% Equity (40% Bonds). Would you recommend this?
Hi Muntaser. Thanks for watching and the comment. I can’t ‘recommend’ anything to you as I don’t know your wider circumstances but if you are trying to lower your overall risk, one natural way to do that would be with bonds. What I would say is, just check the underlying funds that the LifeStrategy 60 invests in in case there is any unwanted overlap in the funds you already hold.
The LS 80% has 19.2% invested in FTSE, the LS 100% has 25% which means a huge bias towards the stagnating FTSE when it only constitutes 5% of the world economy, that combined with the woeful performance of the FTSE over the last 20 years means it's not the best investment unless you do as I have which is to buy the top 8 LS 80% funds (excl FTSE) and divide the FTSE allocation among them which effectively follows the LS but without the dead weight of the FTSE. The overall fund charge is lower too. Another aspect I dislike about FTSE is (according to the DT) it is the wokeststock market in the world (see why Deliveroo bombed) and see why they're vetting IPO companies. Not for me.
Sounds like the lifestrategy might not be for you…although the home bias may turn out to be favourable if the UK 🇬🇧 is undervalued. However, I tend to agree with you.
I have just opened my first stocks and shares ISA and invested £500 in a Lifestrategy 80% equity fund. It was done on a whim and I regret it now. The UK bias is definitely a turn-off. Any ideas if I can transfer my money to a different fund, and how much I would have to pay in fees? Otherwise, I think I would have to wait until next year to open an account with a different fund?
Hi Chris! Totally agree, being brave enough to know your number and jump off is definitely the ticket. The bags under my eyes are more ‘2 young children’ related than ‘hamster wheel!’
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Latest video here looking at whether you should ditch these Lifestrategy funds in favour of an active approach ruclips.net/video/dqjlc1WYLnE/видео.html
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@MarcelPhilips Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@MarcusFred-wn3iv Who’s the person guiding you
@@MarcelPhilips credits to KRISTIN GAIL CUNNINGHAM, one of the best portfolio managers out there. she's well known, you should look her up
@@MarcusFred-wn3iv Thank you, I just checked her out and I have sent her an email. I hope she gets back to me soon.
The quality on this is great! Keep it up Tom.
Thank you!!
Nice job. I appreciate the way you tried to make it a bit different to the majority of similar channels.
That’s kind of you to say, that was exactly what I was trying to do so thanks for the comment. 👊🏻
Tom, this looks like a good starting point for someone like me. Thanks Tom, food for thought.
Worth looking at for sure
Your production quality is unreal!
Thank you Nick. Hope all is good with you
@@ThatFinanceShow Just sent you a DM on instagram :)
Got it thanks! Replied.
Superb......This will be the video that I will be showing to anyone who ask me about vangaurd and lifestrategy
Thank you Soney! Appreciate that greatly.
Clearly explained and at a good, easy to follow pace, great work!
All my family have been poor, all retired with nothing. I don't wanna be that person. It's hard to make money on low wages but trying to learn. Thanks for the advice
The very fact that you’re watching, trying to learn and gather information means you’re on the path to success. You can do it. Keep going and good luck.
New to the topic but this was great. Really simply explained and easy to follow
Thank you Anne, so glad it helped. Good luck with your investing journey! 👊🏻
Absolutely love Vanguard funds and it's platform
It’s certainly up there. You use it yourself?
@@ThatFinanceShow Yes, but I wonder why do ppl use lot of vanguard funds in different platforms like HL or II and pay more platform fees just so u can have different few funds.
You are giving great content, I’m interested to start investing but never find a good explanation of the things on vanguard till Now that I find your content.. you did give a dip info that I didn’t even find in the website. Looking for more in your site to understand about investing. Thank you and got bless you!! 👏👏👏 BRAVO
Love this! Thank you my friend - really glad it helped.
Excellent and very well explained. Just subscribed, love your easy to understand videos
Ah brilliant! Thank you so much. Reading this makes it worthwhile.
I absolutely love this! Great style. Great info.
🙏🏻 thank you Chris, appreciated 🙏🏻
Very thorough, well presented, clear
Thank you!
can you choose to invest in just the american sp500
Not with the Lifestrategy, you’d need a sandp500 tracker for that, something like VUSA will do it.
@@ThatFinanceShow but it would be possible to do so on Vanguard as a UK Citizen?
@@ggzii yep, no problem.
Great video, very informative to a beginner like me. Thanks
You are very welcome! Thanks for commenting 👊🏻
Very useful video, and easy to watch. Thanks.
Thank you for the comment. Really good to hear it was easy to watch, I put a lot of thought and effort into how it flows so thanks 🙏🏻
Really good explanations! Subscribed!
Ah ha! Thank you so much, glad it was helpful and thanks for subscribing! 👊🏻
Very informative and easy to follow info great stuff.
Thanks pip glad you enjoyed it
Just one thing, I'm not sure if this is what you meant but it's not minimum investmentS. It is a minimum initial investment, that £500 is a minimum invest to start off your ISA Account, or when you open it, you agree to a monthly direct debit of £100. Once you've made one investment of over £500 and your portfolio is going, you can then buy into another index fund or ETF for say ... £283, if that were the unit price. However, Vanguard advises not to make investments of
Thanks for clearing that up Mae, appreciated. 🙏🏻
@@ThatFinanceShow No problem. It can be confusing, because if you had say 5 funds, and only wanted to deposit £300 a month, you can't do either a minimum one off of £500, or put more than £100 in each. This is the communication I had from Vanguard:
" Thank you for your message and I hope you are well.
The £500 or £100 monthly direct debit is just to set up the account. We strongly recommend clients invest a minimum of £100 per an order as small orders can be negatively impacted by unit rounding. For the S&P 500 this is an ETF so only trades in full units, this is why there was cash leftover and there isn’t a fee for trading using the ‘Next dealing point’ option. "
P.S. I subbed, good content. Keep it up.
Brilliant, thanks Mae. That’s really useful info for everyone.
13:19 About the rebalance on Equity and Bonds , is this relevant for the LifeStragegy 100% fund? As I currently know Bonds are not included in this with it being 100% Equities. Basically, is rebalancing by selling and buying included in this 100% fund?
Hey, yes it will still be rebalanced to the different allocations in each fund that makes up the Lifestrategy 100 to keep it in check to that desired mix. Hope that makes sense
@@ThatFinanceShow That helps a lot, thanks for clearing it up. Keep up the good work, have helped me a lot.
This definitely has a school video feel to it, but the video explained things very well.
Hi Bob, ha - I know what you mean this was the first time I tried to do something a bit different. Thanks for watching and hope you found it useful.
@@ThatFinanceShow I found it super useful. It was explained brilliantly.
Great video. Just wanted to add that after month 1 you can reduce your monthly payment.
Ah great tip thank you. I hadn’t thought of that!
Thank you for teaching me ☺️
You are so very welcome 🤗
Hello,, whats your favourite fund on the vanguard platform. Thanks colin
Hi Colin, thanks for the comment. Hard to have a 'favourite' as such as they all do such different things. You aren't really comparing apples with apples, you cant compare a fund that invests in US companies to one that invests in UK bonds for example. If you are looking for one fund to cover all bases in a portfolio, these lifestrategy funds are an interesting option.
Great video - I’m considering Vanguard for 2021, low fee structure is attractive but UK bias is off putting for life strategy - So would want to build my own portfolio of funds. But was hoping to set up accounts for the full family on one platform, but they don’t allow transfers in of CTFs to JISAs which is a real pain.
Thanks for the comment. Yes I think the home bias are their biggest drawback. Given where the FTSE is though...could it actually be a short term advantage?
Good Video. Subscribed!
Thank you!! 👊🏻
Great video - looking forward to more!
Ah thank you Sarah! So good to hear 😊
This is a great video keep up the great work
Thank you, glad you found it useful.
Thank you Tom, very informative!
Glad it was helpful!
I think, you should make another video about these funds in todays current climate. Especially, for people that are just beginning
Good shout, I will!
When colleagues express a mild curiosity in FIRE, but it's clear they're not interested in 'doing the work', this is one video that keeps coming to mind... Flattery aside, I suppose it does make sense, even for someone on say a 10-year timeline to use this as a 'harm reduction strategy' as their portfolio draws close to maturity?
Still thinking it's probably a good thing at this time to have a UK bias: the P/E for the FTSE is low compared to the S&P, which makes me think growth will be healthy in UK big caps. Interested in your views, I hold LS100 and VG All Cap equally because I really can't decide. I'm a little put off by the ETF version of the AllCap as, because it is managed in Ireland, there are some questions about withholding tax even when in an ISA. Just adds uncertainty for me. Also, with any platform it is a good idea to check how quick they are at liquidating investments and returning to your bank account, as that for me is something we only generally find out later in our relationship with a provider. Just sell a small amount and request withdrawal to your bank acount to check how responsive they are.
Interesting thanks. Yes there’s a lot of argument for value in the UK. It certainly hasn’t recovered like the US. I like the lifestrategy 100 because I’ve got plenty of US focus elsewhere so it balances out. Thanks for watching and the comment.
So do you know how quick Vanguard is to liquidate assets and return funds to your bank account?
New to the channel.great video
Thank you and welcome 🙏🏻
Great video!
Thanks!
Good explanation
Thanks George, glad you found it useful.
Great vid
Thanks! Glad you enjoyed
Thank you !
You’re very welcome Roxana!
For someone low risk investing in and interested index funds. Would I be best to invest 20 bonds and 80 equity to keep the balance in your opinion?
Hard for me to say Leslie without knowing wider circumstances and I can’t give advice here. The Lifestrategy range are a great place to look, but if you are truly low risk, you might still want less than 80% equities.
Super Tom!
Thanks John 👊🏻
Thank you.
You’re welcome, hope it was helpful.
thanks this was great
Thanks Samit, glad you found it useful. Thanks for commenting
Hey, great video - really informative and good for beginners. You mentioned at one point about Vanguard having the Stocks and Shares ISA accounts as well. Can you manage funds in and out of the Vanguard Lifestyle/Global Balanced Fund through the Socks and Shares ISA account to benefit from the tax relief? I.e. if I wanted to have both accounts as different sources of investing can I run them out of one Stocks and Shares ISA account?
Given that markets have performed extraordinarily over the past 5 years (the LifeStrategy history looks excellent), what is the future? Is not a good time to invest? Given all the money being pumped into the economy at the moment? Also, let's say I have £10k to invest, shall i stagger that into the fund over a period of months, or just shove it all in one go, now? Really enjoyed the video - ATB :)
If you’re investing for the long term (which you should be) it’s about time in the markets, not timing the markets. More people have lost money waiting for a correction. Ftse 100 as an example is still not back to pre COVID levels. You could stagger, it may help to lower risk but if markets do well in the short term you’d have lost out. Research pound cost averaging or dollar cost averaging. Thanks for the comment and best of luck with it all.
@@ThatFinanceShow Many thanks for your reply - hugely appreciated
Good video which explains it all so well. Thank you. Just a question 🙋🏾. I recently opened a vanguard account and isa this week. For the new financial year, do I have to open another isa, or will it automatically reset and adjust to my 20,000 allowance? Does that make sense?
Hi Leslie. Makes sense! You can just use that same isa, your allowance will renew in the new tax year!
@@ThatFinanceShow thanks. Thought I would have to manually contact them. Thanks again
If you are a beginner and go for one now will you regret it later when you become more conversant with investing. Are these really automatons for those who don't want the hassle of digging any deeper?
Hi there, thanks for the comment. The reality is a lot of people don’t want the hassle of digging deeper and just want a set and forget style investment strategy.
I think I’ll go for the Life Strategy 100 or possibly 80/20. Personally I’m happy to go for the home bias and even though most RUclipsrs keep going on about how weak the UK economy is these funds seemed to have performed quite well over the past 8 years despite the media saying how terrible things have been since Brexit.
Agree, even the 60/40 LS averages nearly 5% in 5 years. Nearly 7% over a 10 year period.
Isn't bad at all really. People get greedy and want 10% or more.
Great explanation thank you.
I was hoping to open an account with them as I receive income in the UK but live overseas (remote working). Doesn't look they offer global index funds for expats does it? UK residents only in T&C's 🙁 Is there a similar company with such low fees for non-UK residents (UK citizen)?
Excellent video. I have two Vanguard Index Funds (US Equity and Emerging Markets). I am also interested in a lower risk fund, with bonds. I am considering Life Strategy 60% Equity (40% Bonds). Would you recommend this?
Hi Muntaser. Thanks for watching and the comment. I can’t ‘recommend’ anything to you as I don’t know your wider circumstances but if you are trying to lower your overall risk, one natural way to do that would be with bonds. What I would say is, just check the underlying funds that the LifeStrategy 60 invests in in case there is any unwanted overlap in the funds you already hold.
The LS 80% has 19.2% invested in FTSE, the LS 100% has 25% which means a huge bias towards the stagnating FTSE when it only constitutes 5% of the world economy, that combined with the woeful performance of the FTSE over the last 20 years means it's not the best investment unless you do as I have which is to buy the top 8 LS 80% funds (excl FTSE) and divide the FTSE allocation among them which effectively follows the LS but without the dead weight of the FTSE.
The overall fund charge is lower too. Another aspect I dislike about FTSE is (according to the DT) it is the wokeststock market in the world (see why Deliveroo bombed) and see why they're vetting IPO companies. Not for me.
Hi thanks for the comment, interesting view. Not sure I follow what you mean by wokest stock market in the world? Maybe I’m too old 😂
Vanguard need to remove home bias. Don't understand why the committee favour home bias. It's a no no from me.
Sounds like the lifestrategy might not be for you…although the home bias may turn out to be favourable if the UK 🇬🇧 is undervalued. However, I tend to agree with you.
I have just opened my first stocks and shares ISA and invested £500 in a Lifestrategy 80% equity fund. It was done on a whim and I regret it now. The UK bias is definitely a turn-off. Any ideas if I can transfer my money to a different fund, and how much I would have to pay in fees? Otherwise, I think I would have to wait until next year to open an account with a different fund?
You look shattered. Knowing when to step off the hamster wheel, that’s the secret ! 🤫🤫
Hi Chris! Totally agree, being brave enough to know your number and jump off is definitely the ticket. The bags under my eyes are more ‘2 young children’ related than ‘hamster wheel!’
Bit rude!
Vanguard life strategy is bollocks, after 4 years of investing, I'm only up £185. My Tesla shares has done threefold.