I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

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sometimesinvestor
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I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by sometimesinvestor » Sun Jul 08, 2018 11:38 am

Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional equity fund

jacoavlu
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Re: i DID NOT KNOW THIS ABOUT THE lIFESTYLE FUNDS.

Post by jacoavlu » Sun Jul 08, 2018 11:41 am

Yes. This is clear from the information Vanguard provides about the fund.

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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by LadyGeek » Sun Jul 08, 2018 1:00 pm

I retitled the thread to help with the spelling and to correct the fund name.

The wiki has some background info: Vanguard LifeStrategy Funds
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chevca
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by chevca » Sun Jul 08, 2018 1:14 pm

sometimesinvestor wrote:
Sun Jul 08, 2018 11:38 am
Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional equity fund
It shows you joined the forum here in 2009, you have nearly 1200 posts, and you didn't know this???

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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by JBTX » Sun Jul 08, 2018 3:41 pm

sometimesinvestor wrote:
Sun Jul 08, 2018 11:38 am
Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional equity fund
But if you buy another equity fund then you will have to periodically rebalance, which takes away from the main benefit of life strategy funds which is automatic rebalancing.

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sometimesinvestor
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by sometimesinvestor » Sun Jul 08, 2018 4:45 pm

chevca wrote:
Sun Jul 08, 2018 1:14 pm
sometimesinvestor wrote:
Sun Jul 08, 2018 11:38 am
Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional equity fund
It shows you joined the forum here in 2009, you have nearly 1200 posts, and you didn't know this???
[ quote fixed by admin LadyGeek]

No and I don't think its that surprising. I have not invested in any of these funds though I am aware they vary in risk and unlike target funds don't change their allocation. Isn't that enough knowledge about funds I don't invest in?. I started this thread because I learned something I did not know and thought others might also be unaware

grok87
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by grok87 » Sun Jul 08, 2018 5:36 pm

sometimesinvestor wrote:
Sun Jul 08, 2018 4:45 pm
chevca wrote:
Sun Jul 08, 2018 1:14 pm
sometimesinvestor wrote:
Sun Jul 08, 2018 11:38 am
Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional equity fund
It shows you joined the forum here in 2009, you have nearly 1200 posts, and you didn't know this???
[ quote fixed by admin LadyGeek]

No and I don't think its that surprising. I have not invested in any of these funds though I am aware they vary in risk and unlike target funds don't change their allocation. Isn't that enough knowledge about funds I don't invest in?. I started this thread because I learned something I did not know and thought others might also be unaware
thank you for starting the thread.

looks like the wiki is out of date as it fails to mention the funds' international bond holdings
RIP Mr. Bogle.

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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by arcticpineapplecorp. » Sun Jul 08, 2018 5:57 pm

These are good funds, they're the predecessor to the target date retirement funds. I only knew about them because when I started investing, other than the vanguard balanced index fund, these were the asset allocation funds that were available (the target date funds weren't created yet).

Interestingly in my 457b plan at work we still don't have target date retirement funds. But we do have lifestrategyish funds (asset allocation funds). Unfortunately, they don't offer us 80/20, 60/40, 40/60 and 20/80 but rather just 80/20, 60/40 and 30/70. All of these contain 30% international stocks (no international bonds). I suppose those are good enough for young/midage/retirement, or approaching retirement. They label these funds aggressive, moderately aggressive, conservative, respectively.

Interestingly in my 457b plan at work the only other asset allocation fund is also a 60/40 fund, but U.S. only and instead of it being called moderately aggressive fund, it's called "balanced fund". I'm sure many are confused about how these are different (just whether there's international or not, really).

What others also might not understand is that you have to switch from one fund to the other as you want to reduce risk over time, unlike with the target date funds which automatically lessen risk. This is why the lifestyle funds were the predecessor and in my opinion not as intuitive or easy to manage (you have to take action with the lifestyle, with the target date the actions are automatic).

Otherwise you have to roll you own if you want other percentages. Thanks for posting. This stuff is not innate.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

Jablean
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by Jablean » Sun Jul 08, 2018 6:59 pm

Were you unaware of LifeStrategy fund types or just that Vangaurd offers them?

If I recall my reading right, it's a relitivily new fund strategy. Common in 529s but was less common until recently in regular investing. two cents

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badbreath
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by badbreath » Sun Jul 08, 2018 9:00 pm

only problem with the funds is the are not very tax efficient in a taxable account.
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by siamond » Sun Jul 08, 2018 9:12 pm

grok87 wrote:
Sun Jul 08, 2018 5:36 pm
looks like the wiki is out of date as it fails to mention the funds' international bond holdings
I am not quite sure why you say that. The International bonds holdings are made clear in the Funds Allocation section, under the '2015 changes' heading. Their introduction in 2013 is also well documented in the History section. What's the problem?

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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by pascalwager » Sun Jul 08, 2018 10:37 pm

If the bonds were short-term, I might consider the LS funds, but I don't like intermediate term-risk.

grok87
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by grok87 » Mon Jul 09, 2018 6:56 am

siamond wrote:
Sun Jul 08, 2018 9:12 pm
grok87 wrote:
Sun Jul 08, 2018 5:36 pm
looks like the wiki is out of date as it fails to mention the funds' international bond holdings
I am not quite sure why you say that. The International bonds holdings are made clear in the Funds Allocation section, under the '2015 changes' heading. Their introduction in 2013 is also well documented in the History section. What's the problem?
Thanks. My mistake. I was looking in the history section by mistake.
RIP Mr. Bogle.

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siamond
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Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Post by siamond » Mon Jul 09, 2018 9:46 am

grok87 wrote:
Mon Jul 09, 2018 6:56 am
siamond wrote:
Sun Jul 08, 2018 9:12 pm
grok87 wrote:
Sun Jul 08, 2018 5:36 pm
looks like the wiki is out of date as it fails to mention the funds' international bond holdings
I am not quite sure why you say that. The International bonds holdings are made clear in the Funds Allocation section, under the '2015 changes' heading. Their introduction in 2013 is also well documented in the History section. What's the problem?
Thanks. My mistake. I was looking in the history section by mistake.
The sub-section titles were indeed a little confusing. I did a couple of minor edits to the page to make it clearer. Thanks for the feedback.

As a side note, I think the LifeStrategy are terrific funds, which would work well for many investors, accumulators as well as retirees. Fees recently dropped to 0.12%, which is incredible for a fund of funds. This is my recommendation by default when I discuss with people who don't know what to do with their savings.

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