Vanguard life strategy

[spender400]

Hi
I’ve got some single stocks in UK and US companies and a fair chunk in a low cost US share tracker, about 25% (total invested circa 600k$) across various containers.

I’ve recently come across vanguard life strategy 60% or 80% funds. I’m toying with selling a lot of what I’ve got and buying into vanguard 60%. I’m 46 and targeting phased exit from 50 but won’t draw much until 55. Wondering if any of you had any thoughts?

Thanks

 

[VanWinkle]

Hello spender400,

Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

This fund is 35%US stock, 28% International stock

24% US bonds, and 12% International bonds.

Total 60% stocks/40% bonds.

It is well diversified, reasonable Expense ratio of .13.

It is within the allocation recommended for your age and exit strategy.

You may be able to do better, but the worse choices are infinite.

If simplicity is your goal, this fund may fit the bill.

Best to you,

VW

PS- Watch out for Capital gains on your existing stocks for tax purposes.

 

[LOL!]

Your post hints that you are not a US resident nor perhaps even a US citizen.

That could lead to some interesting tax consequences if trying to use vanguard lifestrategy funds. Also, Vanguard may not let you even be a client.

Nevertheless, the 60/40 LifeStrategy Moderate Growth fund with its 60/40 asset allocation is a terrific fund of index funds. I have been following it for years because I use it as a benchmark for my 60/40 portfolio. I think the Vg LS moderate growth fund is pretty hard to beat and will continue to be one of the better performing 60/40 funds over the long term.

One of the things that stops me from using this fund is that I get better tax-efficiency running my own portfolio,

 

[mountainsoft]

Nevertheless, the 60/40 LifeStrategy Moderate Growth fund with its 60/40 asset allocation is a terrific fund of index funds. I have been following it for years because I use it as a benchmark for my 60/40 portfolio. I think the Vg LS moderate growth fund is pretty hard to beat and will continue to be one of the better performing 60/40 funds over the long term.

I have my IRA in the Vanguard Balanced Index Fund (VBIAX) which is also a 60/40 mix. In the short term (1 year) it mostly mirrors the Life Strategy fund, but in the long term (3+ years) VBIAX has come out a bit ahead. They're both rather close though.

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[Alan]

Your post hints that you are not a US resident nor perhaps even a US citizen.

That could lead to some interesting tax consequences if trying to use vanguard lifestrategy funds. Also, Vanguard may not let you even be a client.

Correct. Vanguard will allow overseas residents to manage and trade within their existing accounts but won't allow non-residents to open new accounts.

ETA

OP, I see from your earlier posts that you reside in the UK. If you do manage to open any US funds then be sure that they are "HMRC Reporting" funds otherwise they will not benefit from the lower tax rates on dividends and capital gains. (Most of Vanguard's ETF's are listed but not their managed mutual funds)
https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

 

[spender400]

Smart observations thanks to all who’ve responded. I’ll look closely at the tax implications

 

[LOL!]

I have my IRA in the Vanguard Balanced Index Fund (VBIAX) which is also a 60/40 mix. In the short term (1 year) it mostly mirrors the Life Strategy fund, but in the long term (3+ years) VBIAX has come out a bit ahead. They're both rather close though.

I also use VBIAX as a benchmark. VBIAX has no international investments (no foreign equities, no foreign bonds), so it does better than VSMGX when US equities are doing better than foreign equities and does worse when US equities are doing worse than foreign equities.