New portfolio

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Francisco
Posts: 7
Joined: Sat Aug 24, 2019 3:32 am

New portfolio

Post by Francisco » Wed Oct 16, 2019 1:49 am

Hello,

I have roughly £40k to invest with a 17 years horizon. I had all my money in a vanguard LS20 but i have decided that this would hurt my returns, so i have instead decided to allocate 80% in VHYL and 20% in VEMT with a £500 contribution every month. What are our views? Good? Bad?

Valuethinker
Posts: 38947
Joined: Fri May 11, 2007 11:07 am

Re: New portfolio

Post by Valuethinker » Wed Oct 16, 2019 2:13 am

Francisco wrote:
Wed Oct 16, 2019 1:49 am
Hello,

I have roughly £40k to invest with a 17 years horizon. I had all my money in a vanguard LS20 but i have decided that this would hurt my returns, so i have instead decided to allocate 80% in VHYL and 20% in VEMT with a £500 contribution every month. What are our views? Good? Bad?
Generally we do not know tickers, here. So I have no idea what you are investing in.

If you mean that you will retire in 17 years, it's generally not a good idea to simply have a totally cash portfolio in 17 years (unless you plan a major geographic relocation etc.).

Why would the Vanguard fund hurt your returns?

Portfolios at retirement should generally be 20-50% in equities, depending on risk tolerance. Because of economic uncertainties, inflation, etc. I would almost never suggest someone be less than 20% global equities (avoid home country and home region bias).

minimalistmarc
Posts: 486
Joined: Fri Jul 24, 2015 4:38 pm

Re: New portfolio

Post by minimalistmarc » Wed Oct 16, 2019 2:38 am

Francisco wrote:
Wed Oct 16, 2019 1:49 am
Hello,

I have roughly £40k to invest with a 17 years horizon. I had all my money in a vanguard LS20 but i have decided that this would hurt my returns, so i have instead decided to allocate 80% in VHYL and 20% in VEMT with a £500 contribution every month. What are our views? Good? Bad?
Are you lump sum investing the 40k and then investing 500/month. With such small monthly investments you will have a lot of dealing charges for ETFs with most brokers.

Is the money invested in tax sheltered accounts or not?

Why VHYL rather than VWRL (vanguard all world) and I have no clue about VEMT.

Traditional advice is to decide on your asset allocation equities:bonds with the equities being all world (or all America for some US investors) and and the bonds being all world (e.g VAGP)

typical.investor
Posts: 1219
Joined: Mon Jun 11, 2018 3:17 am

Re: New portfolio

Post by typical.investor » Wed Oct 16, 2019 2:42 am

Francisco wrote:
Wed Oct 16, 2019 1:49 am
Hello,

I have roughly £40k to invest with a 17 years horizon. I had all my money in a vanguard LS20 but i have decided that this would hurt my returns, so i have instead decided to allocate 80% in VHYL and 20% in VEMT with a £500 contribution every month. What are our views? Good? Bad?
It’s best to post fund names/descriptions.

Not many, if any, know the tickers for all the funds in the world.

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