Vanguard Lifestrategy VS Target Retirement Funds | This is where Vanguard gets it wrong 

Age is just a number!

I’ve been self-teaching finance for the past few years and these are very well put together videos. It’s also great that you cover UK content

Go on lad! Putting in that work. Hope you had a good weekend mate!☀️ 🙌🏽

Hi James, I can’t thank you enough for making these videos. Listening to you I have been transformed from being overwhelmed and fearful of investing, to having now taken action at last and I am feeling very positive about my future financial plans. Thank you!!!

Brilliant content and video as always James, thank you so much. Spot on advice about questions that I, and I am sure many others have. One suggestion for future videos, a simple guide to whether to buy an annuity or whether to use drawdown, or combination of the two. I can imagine you explaining this really well!! :) Thanks again.

Thanks James. I'm completely new to investing and learning about getting my setup for retirement. So this is a really handy set of videos. now whether I go for a Lifestratery or a Target Retirement I'm still undecided.

Another fantastic video James. Thank you! You have no idea how much you are helping people!

Great fact based content yet again. Really good stuff which I keep sharing with friends and family. Thank you!

Bang on - it’s a balance of risk tolerance, risk capacity, and time horizon!

This was a very helpful video James, thank you. I was deciding between the Lifestrategy and Target Retirement fund choices in Vanguard, and came on here to listen to some different information about both.

Wow. You are so knowledgeable am intrigued on how to decimated all the questions.

Thanks a lot, this is your best video for me!

Good video James. Some good points about risk/tolerance etc with precise explanations.

Great video, James. Keep it up!

Binged watched all your videos last night thank you for your videos and simple explanations wish you all the best James

Alot of good information here thats not covered by other RU-vid channels.

Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?

Cheers James. Nice and easy to follow video

I don't really comment on RU-vid, but this channel is fantastic. Great content, really well delivered. Keep it up!

I am really enjoying your videos, they are super easy to understand and I feel much more informed! Thank you

Incredibly helpful. I invest in Vanguard and this is very valuable advice.

Thanks James, very helpful and informative

Really good video, It is refreshing to find someone who really understands RISK. I have always invested in my own business and understand risk, the average person who has a secure job may not.

A really important video! Completely agree with the message

Excellent video and just at the right time for me. Very well put across and gives better insight into personal circumstances that should drive the investment strategy, rather than you fitting around strategy designed for the average person.

Brilliant and invaluable content. Thanks James

Hi James! Great video as always👍🏻 I'm currently investing in the LS80. Should I get a VUSA and and/or VWRL as well? Thanks

Great videos, keep up the good work!

Great video, thanks James!

Another excellent video James. Really liked the stuff about risk, capacity for loss. I've done a lot of reading (and investing) on Vanguard and it is good when an expert (that's you James) confirms what I think and definitely adds their expertise and knowledge to aspects I hadn't thought about. It is helping me crystalize my thoughts as to how to move forward and streamline my portfolio and asses what my risk levels are. I'm 60 by the way. Well done on your channel. I've got my sons watching it too.

James, discovering your videos has changed my life! I now have more understanding of what I can do with my money than I ever did. I feel confident in investing and I have reviewed all my pensions thanks to you! Please keep going because your work is manna! Thank you. Oana

As always James fantastic plain speaking content......I believe that this old fashioned notion of more bonds was based on most people ending up with annuities in retirement before the pension freedoms.this was to protect them if they happened to retire at a downturn.....I believe in risk and I believe in simplicity.....I have ISA's pensions etc but there is a three year cash buffer to cope with any downturn but to also take advantage of one ........everyday is a school day and Im still learning thanks to the efforts of kind indiviuals like you........I don't tinker much but I refine as my knowledge improves .............thanks again very much appreciated

Pretty much described my current situation to a tee. Being Canadian I like a combination of VXC, VDY, VCE and VQN. Plus dividend stocks and a good chunk of change on the sidelines.

Great video James, this was my dilemma, i transferred a Pension into a Vanguard Sipp, Target Development Fund 2025, but i was thinking although i am 66 and semi retire in November, i still wanted the Pension to work for me, and wasn't ready to slow down just yet, and i wanted a certain amount of control over it. Your video gave me the info to, decide to change it to a Lifestrategy 80/20. And i have an isa in the US Global equity index. Thanks for helping me decide what to do.

Very good video! Enjoyed that. As I was watching, I was itching to post a comment saying something like "but what if you have a pension?", and then you covered it right at the end. For me, these retirement funds seem to be aimed at people who have no pensions and are relying wholly on their investments. Maybe that's more common in the US? Then it does make sense to have a staggered path from high equity to high bond. But you're right that everyone is different. I think if you have a decent sized defined benefits pension you don't need to hold so much in bonds. The pension gives you the low risk part of your portfolio.

Excellent, thank you!

I have a 2040 Targeted Retirement Fund. Thank you for teaching me ☺️

Nice vid, cheers, Jamo.

Excellent video as always. Probably the best on this channel. Could you post more videos on retirement or early retirement strategies? I don't mean videos where you say buy this or sell that but more about strategies or topics that each person has to consider at different stages of life.

Another great video. I'm interested to learn more about the tax implications, how is the tax worked out on these and how is it declared etc

Hi James great video! As I do retire now at the age of 63 my financial advisor told me to reduce my risk level according to their formula : 100% - age down to 35%. However I found out that i will not get enough return for the next 30 years (I hope 😊) to achieve my financial Cashflow targets! So I will stick to my 80% risk level for the time being. My only question is what is the reasonable cash level I should keep aside. This cash I would need to meet my delta cash requirements beyond my existing pension fund without reducing my cash level (which I would like to prevent) Is it 3 years, 5 years , .. any suggestions? Thanks again for the good quality of your work!

Can you do a video on ETF vs Index funds. I have found that i can build an ETF portfolio for cheaper, but i image both have pros/cons

Hi thank you for the video. Would you invest on VWRL and VOO in same portafolio?

Really good video thanks..can you do something for lists say those of us who started a pension late like mid 30s

Thank you James! 🙌

Spot on once again James. I have a cash buffer and my intention is to use it as just that. Bonds have never been that attractive since I started self-investing in 2012, so I never bothered. Maybe something to consider when approaching the lifetime allowance limit?

Great information, James. Given me lots of food for thought. I am retiring in 13 months and do not have a big pension so want to maximise my investments in growth stocks meantime. I will have time to have a side hussle to bring in some cash as I am fit and healthy. Very good content in your videos. Thank you.

@James Shack, any chance that you could compare and contrast the Vanguard target date retirement funds between Vanguard & M1 Finance. Which would you recommend?

Thank u for this!!!!

Great content thanks James. One question could you recommend another low fees platform like Vanguard since each company only cover 85k limit? Thanks a bunch

👍🏻 very good video!

Hi I’m 18 and I’m wanting to open my first stocks and shares ISA. Which provider would you recommend? I was leaning towards vanguard as I was planning on investing 100 pounds month into their S&P 500 fund. Also great video so helpful!

One of your best videos so far James, really helpful and insightful. Keep up the great work!

Very helpful video thanks 😊👍

This came along just at right time for me as at 56 about to drawdown my DC pension and have been forecast very poor returns from where safely invested at present ( -ve at worst and 3.8% best!) To my mind if i keep @ 3 years cash elsewhere then historically boosting returns from Global stock market makes more sense for me as at 65 will have final salary and state pension at 67 to add in 👍

Thanks so much for your videos James. I've learned so much watching them over the last few weeks. I recently left the UK and moved to Europe and want to start investing here for my retirement (I'm 38). I'm looking for a a fund similar to the Vanguard Funds as they seem to be only available in the UK and the US. Have you got any recommendations? Many thanks!

Hi James, Great videos, I just wish that I had found them sooner! At least, the good news is that they seem to be reinforcing what I thought I had learned but I am still a little cautious because of your comment on one video that once you start down one path, you find things on the internet that simply reinforce that point of view. Putting that aside and like other commentators, I had also concluded that Target Retirement funds are really aimed at people buying annuities but I think they can still be useful in managing cashflow - something that you have mentioned several times but I haven't seen a video on that topic (maybe I missed it?). I have just retired, aged 63 but I am still in the detailed planning phase and need to execute on the plan. I'm hoping to continue living for another 30 years or more and I am in the fortunate position that I think I'll have more than enough income, once my state pension kicks in, to last past 100, as long as net investment returns exceed inflation by 1% on average (but I need to implement guardrails - that was new to me and very useful advice). So how could Target Retirement funds work for me? My logic is that if I invest, say 15% of my total SIPP in consecutive target Retirement funds - 2030, 35, 40, etc. to 2060, then that would more or less optimise returns and also mitigate against losses in the period immediately preceding my need to consume those Investments through drawdown, as those dates approach. Any annual surplus could then be re-invested in an 80:20 fund to maximise the residue available for my descendents in the event of my demise. I could see that working as a general approach for many people using drawdown in retirement. Are there any major flaws in my logic? Follows the "invest and forget" strategy so that we're not worrying about the ups and downs.

Great videos James 👍. Any chance you could do one on vanguard Emerging Markets UCITS ETF (VFEM)​​. It would great to hear your views on emerging markets in general as well. Cheers

Hi James. Found this very interesting. I’m a real amateur in these matters, so this might sound a dumb question….. I have an investment ISA with Barlclays. I’m just about to top it up for this year. I want to invest in VLS, should I do it with them directly or through my Barclays account ? Thanks

Would choosing a later TR date option than yr actual target retirement work?

Was wondering if you could discuss fees with different investment platforms. Specifically, if you explain how a Portfolio Bond (RL360) could justify their fees.

I wondered if you had any thoughts on pensionbee which uses blackrock life path starting you at 95% bonds if you are 18 to early 30's this goes down to 40stocks-60bonds when you are close to retirement so not quite as conservative as vanguard or if you felt lifestyle and vanguard overall are better?

Hi James, What apps are best to invest in individual shares on companies e.g. coco cola etc ? Trading 212 seems popular but they are not taking on new customers. Cheers.

Another really informative video. My wife has her entire pension in a 60/40 global fund. She is only in her 30s and would like to change the fund to take more risk. How would you go about doing that? Do you sell the whole pot at once and buy something that is 100% equity’s immediately or do it in small chunks? Is there any risk involved? Thanks

great video, my question is if vanguard is a one stop shop, why has my IFA, designed a portifolio of 12 different funds ranging from a japanese equity fund through to uk and us index funds and yes also a vanguard life strategy fund. They have done well for me and i have no complaints, except maybe for the charges, however is this maybe down to a certain amount of luck.

40% TR2040, 20% LS100, 5% Index Linked Gilts, 5% EM Gov Bonds, 10% UK Equity Income, 10% HY Global, 5% EM ESG & 5% Global All Cap ESG. First 3 funds are accumulation, earnings from remaining income funds used to rebalance once a year.

Appreciate its slightly different to your usual videos but I’d really appreciate a video on REITS! I’d like to invest in property but don’t have the cash for buying actual houses and the only REIT I’m aware of is Tritax Big Box

Actually this ended up being a better, more informative video than most others on RU-vid. Target dated funds are grossly overrated and are being pushed by a lot of lazy RU-vidrs. Congrats on an actual consideration of the fund.

This was so helpful. I am 20 years old and I have just started using vanguard and so far I have invested in the Ftse Europe fund, s&p 500 and the ecg global all cap ucits etf, I am planning on adding the ftse 100 uk and the life strategy 100 equity fund to my portfolio😌

Thanks for the amazing content James. One quick question.... As someone who is willing to take risk due to my young age - I'm 19. I wanted to ask how and whether it would be possible for me to move my investments from a 100% lifestrategy fund to something lower risk later on in life (other than choosing the target retirement funds, lets say because i'm planning on charity projects in my old age) ?

Hey, James. Absolutely brilliant!!! One of the best advice on investing. Really enjoy watching your videos and find them incredibly educational and helpful. A quick question. I’m turning 52 this year and was thinking about opening my very first Stock and shares ISA account with Vanguard by transferring my Cash ISA to them. What funds would you recommend to invest in to make sure it will give me a decent return and also not to go too crazy with the risk as may have to retire in about 10 years. Many thanks. Oxana x 🤗👍🏻

Great video James! I only recently found your channel and it's helping me a lot in understanding the market. My question: does it make sense for a guy of 29yo to invest in Retirement funds? From your video, I get the impression the answer may be NO due to the fact such subject has a higher capacity loss and may not need money now. I just want to be sure of grasping the correct idea.

Thankyou for makin it simple. Ok I’m 56, no pension an only a small savings. The targeted retirement plans are great for someone who’s towed the line, planned an it’s all goin to plan. I think I’m on the other path? I’ve got the robo isa. Done. So now I’m looking at these one shot investments an thinkin 60/40 or 80/20, bcs I’m goin to be investing long into my 70s etc. Add to this I’m disabled an live in a retirement home, what’s goin to pay the bills down the rd? I gues I’m askin which one? Less risk 60/40 or go for it an just plough through the joys to come with the markets for the next 10 yrs onwards. Cheers for ya help. Obi one

James, hi, new subscriber learning a lot from your videos. Quick Vanguard question if I may. Can you transfer a cash ISA from another provider into a Vanguard stocks & shares ISA? Thank you

Please could you do a video about someone already retired - I'm trying to persuade my (early 70s) parents to put their house sale proceeds somewhere better than just their bank account but with low risk

Hi James, really enjoying your videos. If you think a correction is on the way would you say that it would be better to have a more Conservative Life strategy until the next correction and then when it does move to more exposure to stocks? Say start now with pound cost averaging 50/50 and then following a correction switch to 60/40 or 80/20?

Great video and so true. I looked at getting a Lifestrategy Fund but then thought that basically, what is retirement? I'm very lucky in being debt free, fit and healthy and so will continue to earn. Even if I downsize my workload. Like James said, you will need money for (hopefully) a longer period, so why not continue to invest?

Mmmm - as ever intriguing - hit 60 - no investments but couple of pension pots that total £80k. So could I buy tax wrapper and include one LS fund and one Target fund?

I'm just curious why Vanguard's bond allocation doesn't exceed 50% in a retirement fund that's already reached maturity. I would think a 2020 fund should would have already been at around 70% bonds and 30% shares in 2022, not 50/50.

Hey James, great content! Where do you stand on SIPP accounts? My friend has said I can get a government subsidy on my contributions to a SIPP which sounds great but what are the drawbacks? Does it force a risk management strategy on you like the retirement plan from Vanguard? I’ve been recommended to Wealthify - better than Vanguard or no? Cheers

Hi James, stumbled on your channel and really like your no nonsense content, I'm considering the Vanguard SIPP to consolidate 2 of my previous workplace pensions (Scottish Widows and L&G), i also contribute (10% salary sacrifice and 40% earner) to my current Company workplace pension. Is now a good time to be transferring pensions?

How do gov,t tsp lifecycle funds compare to other funds such as vanguard …….costwise and return wise.

So something like M1 Finance where you can be as hands on or hands off as you want would be best?

Great content as always. If you are going for all-out equities, is LS100 better than a global tracker such as Vanguard FTSE Global all cap? Never sure if the UK bias in LS100 is worth worrying about, so long as you are invested long term.

Fantastic video. I spent 3 years studying economics at uni and only learnt one thing that was useful for investing. The price of gilts and bonds goes up if interest rates decrease and the price of gilts and bonds goes down if interest rates increase. Given that US interest rates are very, very, very low, there is not much upside to bonds and a lot of downside to bonds ie I would expect at some point interest rates to rise and the capital value of bonds to fall. I would be grateful for your thoughts on the following: 1. Given the current level of interest rates, why is it a good idea to include "bonds" in the asset allocation at all? 2. What is the next best asset class to invest in that is expected to increase in value if equities/shares fall? Thanks.

Hi James great video! A question: is it a good idea to also invest in a couple of index funds on top of the life strategy fund, or is it better to just put more into the single life strategy fund? Is that putting too much in one place? Thank you!

Hello james ! i am 18, i want to slowly add money onto this account . Do you think it’s best to start a 100% equity one and keep adding till i retire ? A reply would really help . Thank you

Some interesting points

Hi James, I've just found out that since Vanguard charges fee based on how much you invest, it could become expensive up to 375 pounds for the maximum charge. What's your view on this? Thank you.

I'm 54 years old and due to poor decisions in my past I have very little retirement savings. Which would be a better choice the life strategy or target date

Hi James. Really enjoy your posts and (importantly) I’m learning a lot about what’s right for me in terms of investing. Can you advise on the position regarding the £85k protection….. do I need to spread my S&S ISA’s across a number of different providers? That is, if I choose a Vanguard Lifestrategy fund, will I need to split my total investment into £85k lots and place them with numerous providers?

Hi, is there any value in having more than one vanguard lifestrategy funds?

is it easy to switch your life strategy fund from say 100% to 80% to 60% equity manually as you get older, similar to what the retirement fund aims to do? Is it okay to have say a 100% equity LS fund and then switch to a retirement fund down the line? Would there be any problems in doing so such as losing some money?

Hi @James Shack - what I don't understand with vanguard (and similar platforms) is whether the stocks/index funds are bough on my name or I am simply buying virtual stocks/index funds provided by vanguard and they buy the actual stocks and are registered within their company? thank you very much, you videos are very insightful, just subscribed to your channel !

I'm considering the bucket investing approach involving three 'buckets' or funds. One very low risk with sufficient for 2-5 years out, another medium risk with money needed 5-15 years out and a third high risk containing the remainder. They will then be rebalanced each year or so.

Inciteful as ever James, thanks. I'm investigating what to do with my LS60 fund on retirement - looking for income - any ideas?

Hi! You make great videos! Do you think for most people Vanguard is a good platform because of the life stategy despite their 0.15% platform fee or is it better to invest in Vanguard funds on a free platform?

Absolutely love this video. This explanation is super super valuable, thank you!

Not sure what the retirement age will be when/if I make it but you should be able to count on a UK state pension providing you have sufficient NI contribution years. The full uk state pension is a guaranteed £850 or so per month so you can take on a bit more risk and allow for a time of lower drawdown (seeling of assets in retirement) when equities are performing badly (like the covid crash, most of 2022, 2008/9)

Came across the channel as looking to start investing. I ticked boxes mentioned in last vanguard video.so ready to go. Believe it or not silly question time. I haven't tried yet in case I get it wrong. It's the actual process of setting up. This is how I imagine it goes so correct me if I'm wrong. -Set up stock and share Isa on the platform. - deposit money into the isa from my current account - set up DD into the isa - set the isa up to automatically invest each month? Or is I set up the DD to go direct into the fund? Hope that makes sense Cheers