Another great video! I'm just getting into investing and like most people wish I'd started 10 years ago when I realised the impact of compounding interest over time, but, no time like the present, so glad I got started. I have just been steadily investing into the Vanguard S&P 500 but am considering some diversity following this video. Thanks so much!
@@JenniferAMThomson if we invest in Accumulation funds (let say Lifestrategy 100) do we pay dividend tax? It seems like they are never reported on the platform when the funds are accumulation
I've reached a goal of putting aside emergency funds. And now with the next salary coming in the next few days I am finally opening Investment ISA. I am so excited. This video is beyond timely.
I have opened a LifeStrategy fund 100% equity for my son (4) in August 2020. Only £100 a month for the moment, but at least he is already in the market and I think personal finance discussion will be much easier at 8-10 y.o. after 4 to 6 years of result !
Your enthusiasm and concise explanations have tipped the balance for me,I'm in my mid 50s and will be signing up with Vanguard this week,in hindsight I should have done this year's ago but I guess we have to start somewhere!..Lifestrategy 10 year plan here we come,thank you.
I started a 40 & 60% vanguard pension fund in September, it's now at plus 7% return, so far. And with the tax return its seems a winner. I tried to transfer my Lv vanguard pension into Vanguard but its apparently crystallised. But watching these videos made me look hard at my pensions. Subsequently got rid of my adviser, as looking at previous statements, the returns were awful. What with the advisor charges and poor performance of the funds over 4 years. After transfer to LV vanguard funds, I'm around +4% since September. Thankyou
Great video. I live in England. I use a life strategy fund to invest my son’s child benefit (around £80 a month - I invest in £500 chunks). He is 10 months now. Hopefully, by the time he is 18 the compounded interest will pay for the £9k university tuition fees. The government giving us money with one hand and taking it with the other 😀. Or maybe we’ll move to Scotland just before his 18th birthday (I know it doesn’t work like that) 😉
Great video. I started with Vanguard a year ago on your referral and loving it so far. COuld you explain how dividends work with an accumulator fund please? I know they are reinvested but will my amount of stock owned go up, or will the overall value per share go up? I am finding it hard to find info on this. I want to be able to track how much i receive in dividend payments every year and right now I am finding it difficult to do that.
Great content as per usual, I have learnt so much from this channel in the last 6 months. I now deposit regularly into the vanguard ISA and will soon transfer some old pensions into a vanguard pension as well, thanks for all information Jennifer and Happy Christmas.
great video. may sound like a dumb question, but what would happen to my investment if Vanguard was to suddenly close down? should i be putting some money in an ISA through a different investment management company?
Thanks for the video Jennifer, I'm looking into how to start investing and looked at Vanguard for my own future but also trying to work out the best way to set up my kids for the future. With Vanguard it looks like 2 options are £500 upfront or committing to £100 per month. In these turbulent times, how committed is that £100, does it need to be paid EVERY month or can I pay in as I have the spare money?
great vid! i want to start a lifetime isa before i turn 39 this year with Moneybox. I also want to start the vanguard stocks and shares isa for the lifestrategy funds. Do i therefore have no choice but to open a CASH lifetime isa [with Moneybox]? What i’m trying to decide is should i open the lifetime isa in cash with moneybox or with vanguard’s stocks & shares isa - can i get the life strategy funds & lifetime isa in the same stocks & shares isa?
Great video as always. I’m all new to this and want to start investing into one vanguard LF 80-20% account but I want to ask if I need to keep on making payment every month or I can pay some lump of money that I can afford now once like £500 and leave it until next year. Will that generate me any interest in the long term? I can only afford to spare little money each month so I want to know if it’s worth opening these accounts for someone like me. Thank you.
I have been investing in vanguard ls100 for about a year. There is talk of a crash/correction coming in 2021. Do you think it makes sense to swap to bonds and then be ready to buy back in if/when the crash comes?! -
Hi Jen , thanks for the info i have few question 1- is vanguard ISA investments under the FCA protection where investments are covered upto 85k ? also from your another video about etf n index funds am still trying to soak the diff however as far as gains are concerned am assuming the only diff would be when you buy in sell in index funds it will be based on the price at the end of trading session where as etf would be like live rates ?
Great video! I was hoping you might be able to answer these questions: 1. If the minimum monthly direct debit is £100, what happens when the S&P 500 gets to £110 for example? Since Vanguard does not offer fractional shares, would I then need to increase my monthly direct debit so it can afford to buy at least 1 unit? 2. Also, what would happen with the s&p 500 currently being priced under £100, and me depositing £100 every month. Does the excess amount go in to available funds in my account or something? Would be a massively appreciated if someone could answer this.
What are your thoughts on the LS funds being over weighted in the UK. For example the LS100% is 25.1% UK holdings, when the UK only makes up approx 6% of global market cap, this is far too UK centric no? In other words, they aren't diverse enough.
Hi Jen, really helpful video. I am investing in the LS 100 as well. I wondered what other funds you invest in with Vanguard? I am considering a second or third fund depending on the options. Any thoughts on the ones that grab your attention?
Hey Mama FurFur, thanks so much for your fantastic videos, your advice is lifechanging! I just have a question I'd really appreciate if you could answer. What would you advise about investing more than £85,000 into a Vanguard Life Strategy 100? I'm planning to put £20k in the ISA and the rest in the general account. Is the FSCS limit something I need to worry about or is the unlikelihood of Vanguard dissolving enough to not worry about that? Are there any other considerations I need to consider with investing a larger amount? I'm a beginner investor so I'd like to just put everything in something simple like Vanguard and not have to spread out over different platforms yet.
Hi Jen, an other amazing video thank you very much. What do you think of vanguard pension, I have one with them as I’m self employed, but I was wondering if I should stick with vanguard or is there somewhere better ? Thanks in advance xx
Thank you for great content Jen, as ever. Quick question, Vanguard give you a percentage of the gains/losses since you opened the account which is great, but why is it continuing to show roughly the same rate now as it did a few days ago. As it's a new tax year, I had expected the interest to go down to 0 again and build back up or down, especially because all the stats/data give you yearly figures for how well it has done. I'm now assuming that it continues to give you one average interest rate across the years, from when the account was first opened to present?
Hi Something I’m not clear of, If I am only looking to invest in vanguards S & P 500 ETF would I be better off using trading 212’s ISA to avoid Vanguards additional charges using their ISA? Thanks for the content, it’s so helpful
I have this question too. The difference may be the "spread" on trading212 so the buy price of the fund on t212 might be ever so slightly more than vanguard and the sell price would be slightly less than direct vanguard. Not 100% sure though.
really helpful Jennifer. Thanks. Unfortunately, in Ireland, they do not have ISA accounts like the UK. It shows you what our government think of beginner investors...
Been in the 60% lifestrategy for a while, great fund, low charges, auto balancing. Use it for my pension. For my ISA I use the UK all share index fund they also have which is only 0.06% charge which i recently went into due to the dip.
Awesome video. I noticed VUSA S&P and a few others are income - type (non-accumulation). Can I reinvest myself the dividends in Vantguard? Other question: is there a way to make sure there’s no spare cash when I buy ISA in my porfolio ? I guess probably when I I’ll open the account I will get to figure these things out (?)
Thanks for the video ! I can see apart from the life strategy - Vanguard also provides individual options to choose from for the stock and share ISA allocation. Would this be considered more risky (but cheaper) if I buy the individual ones instead of this package ? Cheers xxxx
Hi there, I’ve been watching your videos for a while, I finally took the plunge last night and opened a Vanguard Isa, I couldn’t decide, either Life Strategy 100 or the S&P 500, don’t laugh but I flipped a coin and bought the S&P fund. Now that I’ve seen how easy it is I’m going to buy the Life Strategy 100 too. I believe in America so I’m happy, but as you say, a diversified global fund is also a great asset for my fledgling portfolio. Thanks Mamma....
Is lifestrategy fund an active investment ? Which one is better passive or active ? Are active funds more expensive and do they perform worst in compare to passive ? thank you for your videos .
What a brilliant video. I really liked how clear your explanations were of how the funds are balanced daily and your explanation of the composition of the lifestyle funds.
Hiya. Thanks for this vid. Sorry for being dense but in 1 of the comments below u were asked what a person could typically get in profit over a 20-25 Yr period and u answered minimum 4-5%. So if u invested say £25,000 over 20 yrs in a lifestratergy 100 and got 5% profit, u would walk away with only £1250 after the 20 years? Sorry if I'm missing the point. Many thanks.... jj
Hi, in the Uk I thought that you can only pay into one stocks and shares ISA each year? So does that mean that i cannot use trading 212 as well if I am already paying into Vanguard? Thanks in advance
I have just started investing this year and would like to achieve FI in 10 years. My short term goal is £100,000 in 3 years. My total funds are £30k .I currently invest £1000 per month £750 into vanguard 80% life strategy £250 into pension. My question is should I invest everything into maxing out the ISA first and then add to the pension later.
@@00el04 50% in stocks in the FTSE global, then the LS60 is 60% stocks 40% bonds, but as it only accounts for half of the portfolio it's only 30% stocks and 20% bonds of the total portfolio value, resulting in a 80/20 split.
Which one would you recommend I am a total beginner? 1. FTSE 100 Index Unit Trust Accumulation 2. LifeStrategy® 60% Equity Fund - Accumulation 3. FTSE All-World UCITS ETF (VWRL) 4. S&P 500 UCITS ETF (VUSA)
I’m a fan, really like your videos. In this one you say that life strategy will beat or better the market? I thought the point of an index fund was to match the market. Keep up the great work.
So I’m 19 and recently opened a vanguard account and going to invest £100 a month to a 60% life strategy. Would this be good or should I invest in the pension/retirement 2035 or something?
Well done! I wish i knew about this when i was 19! my daughter is 19 and i've been investing £100 per month into the Vanguard 100% life strategy for her. according to the you tube videos i have been watching, that one is good for people your age, as you have such a long time to leave your money in to grow.
Thanks for another great video! I have a question - In your opinion what benefits do you think using the Vanguard LifeStrategy fund has over doing your own 3 fund portfolio, with roughly 70% US stock, 20% international and 10% bonds? I’m 25, about to start investing and I’m unsure which one would be best for me. Any help would be massively appreciated!
Hello Jen, been in the life strategy 100% fund since your first video, have no regrets, just wondering what are my options with my available cash on my account, should I cash out or leave it for a while?
Hi Jen, i thought the Vangaurd Life Strategy 100 was an index fund so passively managed? Have i misunderstood this. It seems the Key Investor Information suggests that its actively managed.
Fascinating insight into Vanguard . Warren Buffet - one of America's most successful and famous Investors - would recommend Vanguard and the strategy U advocate here. Basically Warren says that most Fund Managers don't beat the market over time and the fees they charge act as a drag on the investors long term returns . Fees compound horribly 😱😱😱
Quick and hopefully an easy question. I have an ISA with a mutual fund manager and want to know if I can switch that to Vanguard and pay less fees? Currently being charged 1% for them to manage my ISA 😥
If I transfer a pension fund from another provider do I have to inform them or would Vanguard do this for you and again would I have to stop and restart my direct debit? To continue with the investment.
Thanks Chris - remember it isn't about which funds outperform (as no one can predict the future) the goal is to make it super simple if people want them so it is a portfolio they can leave for it to be managed in the background with diversity. The goal is always balancing your risk, where you personally want to invest in, and how you want to invest/time you want to put into it.
@@gazearnden8577 lifestrategy 100! I've been in it for 18 months with similar amounts and I'm currently sat at around a 30% ROI. looking to at least double my investment a month soon
Hi... Quick question, the part it's like £100 every month... What if I don't have a £100 next month... Are they going to take my account down or something
I couldn't find the answer to this either, I emailed them directly and I think once you do £100 monthly or £500 lump sum after that it's up to you and can amend it, pause it or pay in less if you need to
Hi Jen, thanks for the information in this video. We opened a Vanguard 100 account last year and it’s the best thing we have invested in thanks to you. Quick question: do you know if in 20 +years time you can change the 100 fund to an 80 or 60 as we get closer to retirement? Or will we only be able to keep paying into the 100? Thanks again, we love watching your videos in our house. Hope you and your family have a great Christmas and a Happy New Year!
You can change the fund you are investing to at anytime through the Vanguard account admin page, i.e. changing allocation of existing fund or future contribution
what are your thoughts on the rumored upcmoming 2021 market correction? in long term investment, could it be a good move to wait for the correction to drop a larger lump sum in the fund?
Hi Giorgio - there are multiple corrections every year, that is just how the stock market works so if anyone is trying to "scare" and say that one is due, they are always right as it happens every year. I would say invest regularly and then if you feel inspired at certain times, do so.
Hi Jen! I was curious to hear what you think about someone (well myself) who is 25 and just managed to tick off completing her emergency fund and would like to start investing. I’m looking to save up and invest for a deposit on a future property (5 years approx). As it’s quite short-term would you say a 20% stock and 80% bond Life Strategy fund makes sense? I know it’s suggested to go higher on stocks when you’re younger, but I would like to know that if I want the potential to withdraw in 5 years for a deposit, I’m not risking too much!
Hiya, loving your videos and learning so much. Thank you :) i'm looking at a Vanguard Stock & Shares ISA, I can see its tax free savings on £20k per year, but how does it work if i leave it a few years growing, and cash it say in 10 years + will I then be liable for tax on any withdrawals ?
Paula, there's no tax on any funds within a stocks and shares ISA, nor is there any tax payable once you sell shares and withdraw the proceeds. The only limitation is if you take money out and then reinvest, it counts towards your yearly £20k investment limit.
I'm confused with compound interest. I get what it is but say I had £1000 in S&P 500 for e.g on Vanguard then I check and it says your investment returned you £30. Shows as £1030. My thought was that the £1030 then goes to work compounding. But then 2 days later it could of gone down to £1010 so how does it compound if the price is like a live price and keeps changing? Hope that makes sense...
The value will change based on the funds price that very day - remember "the compound growth" is the price value (amount of fund you bought) one day compared to that present day if you were to sell it.
Your videos are very informative. May I ale the opportunity to ask a quick question please. I recently received an inheritance. Didn’t know what to do. So simply put 20k in a 2 yr isa with my bank and 40k in a bank savings account. Am I allowed to put some into an inverstment isa ?? Thankyou x
You can pay into 1 cash isa per tax year. Simultaneously, you can fund 1 stocks and shares isa per tax year. So yes, you can fund both a cash and a stocks and shares isas in a tax year.
You can select this fund with a Stock and Share ISA, it just another support. I think you are referring to the difference between a S&S ISA and an Investment Account
Yes if you check out My full portfolio video here - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-4vIZB-imHSI.html. Although this is from December and some changes in further purchases made, this gives an overview. Not personal recommendation for others though, but shows you what I like to invest in personally.
The one thing I don't like about Life Strategy is they invest too high a percentage in the FTSE 100 I'd prefer a higher percentage in the US market which usually performs better.
Hey MamaFurFur - what an excellent explanation - thank you for creating this video. What do you think of vanguard for holding a pension - i have to move 2 of my pensions and i was thinking of putting it into Vanguard SIPP - what is your view on that (Say versus the Interactive Investor product)? hope to hear from you - thank you again.
Great video, I have a question. Say I'm really lucky and I manage to build my portfolio to 500k. How much would I pay in fees also how are the fees taken, does it come out of the portfolio or are you billed at the end of the year or something. Thank you
Billed at the end of the quarter, and they will either take cash from your account (if you have any sitting there) or sell off some of your investments to pay for it in cash instead.
Hi I want to invest in vanguard but my salary is very low and no job guarantee because of hotel industry. I want to know can I invest just 1000 1 time. How it works do I have to pay 20000 in year??
I started my Vanguard S&S ISA last year with 5000. When i have spare cash i pay it in. Have paid in as little as £20. Once you are started you can pay in as little or as much as you like. I saw a MMFF video where she made a £25 Vanguard deposit. Hope that helps.
Hi, great vids or your page, very helpful. If your day job brings in 41k annually, is it better to have your side hustle as sole trading or a ltd company?
Depends purely on how you want to run your side hustle. Both very different ways of running a business - few videos on this topic on my channel to help here.
Pls what is your take on ftse develop world etf compared to lifestrategy. It seem to have appreciated better than life strategy 100 in the past 5years.
I am a new investor and would like to start my investment, probably not very risky in the beginning as I have a requirement of funds in next 2 years. Can you please suggest any fund/bond or investment product for 2 year time horizon?
Nice video but 12:19 if you had bought at £151 and it went up to £170 you have made 13% and NOT 30% as you incorrectly said. 16:19 It's Vanguard not VanGuard
Hi Jennifer thanks for the info. I'm 37 and paying into an 80% life strategy fund for my pension as I'm self employed. Was a bit unsure whether to do that or a LISA but it's growing nicely (better than the 25% LISA uplift) so going to stick with it 👍🏻
@@samheathcote2990 Don't forget when you pay into a pension, sipp, works pension or private pension scheme etc you will get back 25% from the government on top of your contributions. So if you put in say £120 a month you will get an extra £30 from the inland revenue. And if you are lucky enough to be a higher rate tax payer you'll get a lot more money back on top of your contribution.
Hi Jen hope you and your family are safe and well great video on the life strategy funds I’m looking to invest in them again next year. Looking forward to your next video x
Could you please do a video comparing vanguard ISAs vs pensions vs life strategy funds? Be good to know where the best returns can be had and what each is good for. Thanks
@@derodra you won't pay any tax on profits from an isa however drawdown from your pension except the first 25 percent is subject to income tax but that will depend on your personal tax allowance and of course any additional income you have so generally speaking anything over £12500 is taxable at 20%
I suppose the only reason is that you have to invest at least £100 per month in each fund, so if you wanted to invest in both the 80 and 100 then you'd need £200/month to invest!
Can I have an 80% Lifestrategy fund and a 100% Lifestrategy fund and setup 2 separate direct debits for different amount to top up each fund pot each month? Can't find the answer to this anywhere
