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Isaac J
Posted: 07 October 2023 17:40:18(UTC)
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Joined: 25/05/2022(UTC)
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SSJ;281605 wrote:
SF100;281598 wrote:
Lemond;281588 wrote:
Firstly I should say that I am content to be invested all in equities as I am looking 10-15 years ahead.

Now, common wisdom, based on a retirement age of 60 years old (the good old days...), was to
have 100 minus your age, in low volatility investments (for simplicity, lets say cash savings).
As the retirement age has since crept up to 65-67, wisdom has moved on to
have 110 minus your age.

Sounds back to front to me - I certainly won't be following this "wisdom"!


Yes I think it is generally 100 or 110 minus age in stocks, rather than in low volatility.

Fidelity (Canada) rules of thumb as an example

Quote:
Risk tolerance

A common asset allocation rule of thumb is the rule of 110. It is a simple way to figure out what percentage of your portfolio should be kept in stocks. To determine this number, you simply take 110 minus your age. So, if you are 40, then the rule states that 70% of your portfolio should be kept in stocks. The remaining 30% should be kept in bonds and cash.

This rule of thumb can be adjusted to reflect your own personal risk tolerance. If you have a high tolerance for risk, then maybe you want 80% or even 90% of your portfolio in stocks. The opposite holds true as well.
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2 users thanked Isaac J for this post.
SF100 on 07/10/2023(UTC), SSJ on 07/10/2023(UTC)
SF100
Posted: 07 October 2023 17:58:13(UTC)
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SSJ;281605 wrote:
SF100;281598 wrote:
Lemond;281588 wrote:
Firstly I should say that I am content to be invested all in equities as I am looking 10-15 years ahead.

Now, common wisdom, based on a retirement age of 60 years old (the good old days...), was to
have 100 minus your age, in low volatility investments (for simplicity, lets say cash savings).
As the retirement age has since crept up to 65-67, wisdom has moved on to
have 110 minus your age.

Sounds back to front to me - I certainly won't be following this "wisdom"!

original post has been corrected - thanks for your input
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2 users thanked SF100 for this post.
SSJ on 07/10/2023(UTC), Isaac J on 08/10/2023(UTC)
ben ski
Posted: 07 October 2023 18:11:46(UTC)
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Joined: 15/01/2016(UTC)
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Lemond;281588 wrote:
Hello

Firstly I should say that I am content to be invested all in equities as I am looking 10-15 years ahead.

It is wise to consider investing simultaneously into the following 2 funds -

Index tracker fund tracking the MSCI World (Net Total Return) index that fund being Fidelity Index World Fund P Accumulation (GB00BJS8SJ34).

Index tracker fund tracking the S&P Global 100 Index that fund being Legal & General Global 100 Index Trust I Class Accumulation (GB00B0CNH056).

My reasoning – such as is it – is my eggs are not all in one basket so to speak. Is this a fair assertion ?

Ready to be schooled

Thank you.


I think in this case your eggs are all in one basket.. Just that you've got a smaller basket inside that basket, where a few more eggs are.
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3 users thanked ben ski for this post.
Guest on 08/10/2023(UTC), Lemond on 08/10/2023(UTC), Tim D on 08/10/2023(UTC)
MarkSp
Posted: 08 October 2023 12:47:18(UTC)
#13

Joined: 02/02/2020(UTC)
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Newbie;281606 wrote:
My preferences

Vanguard FTSE - Global All Cap - everything - including lots of explosive (good and bad)

L&G Global 100 - Either by momentum or actual success with good business model.

Subtle but key difference is the benchmark and not only in terms of global or top 100. One is FTSE and one is S&P so the participants are/can be constructed using different variables. Those in the industry you will tell you that there is an almighty push for FS firms to create new indices to simply to differentiate and capture capital. It is the new frontier as opposed to a simple index with which the main winning formula is price and accessibility.

So whilst the L&G Global 100 portrays the notion that it simply invests in the top 100, it does not, the index comprises of the companies which are deemed "of major importance" and thus can be subjective or biased.

https://www.visualcapita...e-u-s-vs-everyone-else/

The argument of concentration of US is the same across both and pretty much across all trackers (when Tesla stepped into the public markets it did not matter whether you loved or hated it - many tracker funds were obliged to hold it).

What we need to remember is - just as the sound/sight of a behemoth falling from grace spectacularly is unlikely, nor is the notion that if one did then a unicorn will come running in to take its sport i just as unlikely. Which then leads us to the notion of other issues (such as cashflow, established business model, market position etc) and if we feel that we need to discount certain countries (such as China, India EM etc) for governance and trust reasons and stick to the well established developed world then why do we need to go too far down the spectrum with small cap and things like EM.

Not saying one is better than other as I have both.


Newbie

What I was getting at is when some says "global tracker" I am thinking of a fund that is spread across all the world.not something with 41.59% in 5 names

If the buyer knows what it is, then all well and good - not saying its good or its bad just that it isnlt much of a global tracker
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2 users thanked MarkSp for this post.
Newbie on 08/10/2023(UTC), Lemond on 08/10/2023(UTC)
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