Just to note one more time in case you are thinking I'm suggesting ETFs.
The vanguard Australian shares and International share also allow regular contributions, just like the lifestyle fund. They actually make up 71% of the highgrowth life style fund.
The fees are .75, .9% for the retail versions so not much cheaper than the lifestyle fund. The wholesale options are both at .18%.
The downside to this option is that you don't get the other 29% that the fund makes up, but do you really want the other parts?
Also you will need to get to 200k of funds to have both of them at the wholesale level. Since you are starting out in the retail option and will have to change funds later anyway, you can always adjust your choice.
Thanks POTM.
I do appreciate the difference between the ETF and the single fund wholesale funds. I guess I use the ETF v Broader fund mix as a way of thinking about lowest cost v highest cost ways of getting into vanguard indexes.
I think the way you've suggested is a sensible middle ground. But not for me at this moment in time. I just don't want to think about it. I think its not good for me to think about it!
I'm actually starting with the wholesale option, not retail. At 100k. I have a small amount in an existing retail which I will be putting into the new wholesale account.
I could liquidate everything and get the wholesale funds you are mentioning, but I would rather keep what I have in direct holdings as they are sufficiently diversified, deliver reasonable dividends and there's NO fee for holding these.
As for the extra 29% of diversification across other assets, do I want it? Why not? I recently read
http://www.amazon.com.au/The-Four-Pillars-Investing-Portfolio-ebook/dp/B0041842TWand there are different approaches to allocation and I quite like the idea of getting a lot of international exposure across different asset classes for a really long term investment. Of course I will eat some kind of garment I am wearing if I cash all of it out and plough it into a PPR one day but I think for this to happen I'd have to settle down into a family unit type situation, in which case it will probably be worth it. Sydney will also need to cool down a little first.
In all my fairly limited share shenanigans I've held about 30 shares directly. Most days I track the SP200. Sometimes I get hit worse. Sometimes I outperform. There was no real strategy to my portfolio selection other than a value orientation. So I'm happy to keep some share holdings directly and not cash out of them completely so I don't need to realise capital gains,but I can still draw some dividend income from to put into the vanguard fund.
Its a very bespoke strategy I've adopted. I wouldn't do it this way again if I started from scratch, but one has to compromise to deal with the legacy issues.
