Hi,
Van Dyk here.
I am about to start the investment adventure, but in the UK. In a couple of years we hope to move to the US. We think we can create a total retirement fund for FI within the next 5 years. We were never smart when it comes to financials but we paid of our mortgage and are debt free. We have all our savings on 1-2% saving accounts, and a company pension that takes 1% off the top every year. Changing that to a SIPP (Self invested pension) atm.
So we want to change that around, and I thought I'd post my ideas here for some Mustachian criticism.
The build we're going for is a 50% bond/50% index fund split - we're more interested in stability, sleep, etc than becoming centenarian multimillionaires. (I've even considered a 25% 5 year fixed savings (3%), 25% bonds, 50% index fund split - for extra stability, even more sleep and maybe some more tax efficiency. But what do I know.) Atm, I am looking to realize one of the Lazy Portfolios -
https://blbarnitz4.wordpress.com/2014/07/31/taylor-larimore-three-fund-portfolio/Vanguard Total Stock Market (VTSMX) - 38%
Vanguard Total International (VGTSX) - 12%
Vanguard Total Bond Market (VBMFX) - 50%
For the cheap and flat fee trader - Interactive Investor (
www.iii.co.uk). They're a flat fee trader, with 10 pound trades, and offer ISAs and SIPPs - I'll run up a 300 pound bill every year. According to
http://www.comparefundplatforms.com/ they're at least the best/cheapest there for us. If anyone has experiecee with them, or thinks another one is better - let me know!
The silly thing is that they don't trade in the normal US based Vanguard funds. They have their own FTSE ones and other UK oddities - its like the driving on the left all over again. To be honest I am a bit lost - all I have available it seems is this (the total fund set is available here
http://www.iii.co.uk/funds/fundfilter?task=show_fund_search) :
- Vanguard US Equity Index Acc -
http://www.iii.co.uk/investing/factsheet/FPD3/vanguard-us-equity-index-acc - Suitable as a US Total Stock fund.
- Vanguard SRI Global Stock Acc GBP -
http://www.iii.co.uk/investing/factsheet/0GDT/vanguard-sri-global-stock-acc-gbp - As a Global fund, it already includes the US, so it would off balance
- Global Bonds -
http://www.iii.co.uk/investing/factsheet/FPD9/vanguard-global-bond-index-hedge-acc-gbp - Maybe suitable as a Global bond, but there is no US one. But, hedge?
I need someone with a decoder ring!
More complications. Due to Brexit etc, I am actively looking to avoid UK funds. Also, I am totally in the dark on having deep investments in the UK and getting foreign income once we make it to the US. So I'd love to trade trade secrets with some other UK savvy people, or future US compatriots who've dealt with the expat thing.
For example, if I was 100% sure on going to the US, would it make more sense to invest there from the outset?
Thanks,
VanDyk