Author Topic: Help a UK based newbie sort asset allocation...  (Read 1076 times)

StiffUpperLip

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Help a UK based newbie sort asset allocation...
« on: May 22, 2017, 02:17:23 PM »
I finally bit the bullet and invested in the stock market! But in an effort to get out of my analysis paralysis I have chosen an asset allocation I don't really understand (points for honesty?)

I presently hold
- 50% Vanguard FTSE Developed World (ex UK) Equity Index
- 20% Vanguard FTSE UK All Share Index
- 10% Vanguard Global Small Cap Index
- 10% Vanguard Emerging Markets Stock Index
- 10% Blackrock Global Properties Securities Equity Tracker (Class A)

All are the accumulation version of each fund, and held with Hargreaves Lansdown.

I'd like to just set and forget, just keep adding and adjust back to target allocation quarterly or so depending on when I add more money to the funds... But now I'm second guessing the allocation as I don't feel I understand it enough...

I only have a small amount in the fund in a SIPP wrapper at the moment as just starting out, I'd like to have a clearer idea for when I get my higher rate tax refund so I can adjust as necessary using this additional money.

Any advice welcome. Thanks in advance!

AnswerIs42

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Re: Help a UK based newbie sort asset allocation...
« Reply #1 on: May 22, 2017, 02:47:33 PM »
Sounds like a good start to me - it's a pretty diversified collection. As you say, it's better to jump in with small amounts rather than get analysis paralysis and not do anything.

If I had to nitpick - personally I prefer to have property funds that own properties rather than property equity funds, but that might be a matter of personal taste. And maybe in some cases you might be able to find funds that are even cheaper than Vanguard in HL's core trackers list (e.g. Legal & General UK Index for 0.06% with zero initial charge, rather than 0.08% with 0.20% initial charge for the Vanguard equivalent). But you won't go too far wrong with what you have. Stick with it for a while, and see how it goes.

SeattleCPA

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Re: Help a UK based newbie sort asset allocation...
« Reply #2 on: May 22, 2017, 07:30:34 PM »
It's not very UK-centric, but my book, The Thirteen Word Retirement Plan, has a chapter that talks about the logic of popular asset allocation formulas...

You might therefore find this free ebook helpful. BTW, if you look at the webpage where you grab the book,it looks like you "purchase" the ebook... but the purchase price is $0.

http://evergreensmallbusiness.com/the-thirteen-word-retirement-plan/

StiffUpperLip

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Re: Help a UK based newbie sort asset allocation...
« Reply #3 on: May 23, 2017, 04:30:32 PM »
Thank you both for your help. I'll look into the differences between the property funds as this wasn't a conscious choice. But I may leave the others as is at the moment if there are no obvious clangers!

Thank you again.

UKstache

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Re: Help a UK based newbie sort asset allocation...
« Reply #4 on: May 24, 2017, 04:44:33 AM »
You may also want to think about the account you use. SIPP is best I think if you're planning to retire at 55 or later, but you'll need something else, probably ISA to go earlier. On your original question I'm in the UK using vanguard lifestrategy to do asset allocation for me as I also felt unsure about picking my own. Auto rebalancing keeps it super simple.

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