cart icon

Have you made the most of your annual £20,000 individual savings account (ISA) allowance? If you have children, what about the £9,000 Junior ISA allowance? 

Have you even opened a stocks and shares ISA yet?

With the tax-year finale on 5 April just weeks away, it’s a good time to consider these questions. After all, every little extra invested now can get you closer to your long-term goals. And if you don’t use your 2022-23 allowances soon, you’ll lose them too.

To whet your curiosity, here’s what four of our experts are currently doing with their own money. We’ll follow with four more in part 2.  

Remember, though, that these are their personal choices. Whichever investment strategy is right for them, may not be right for you. 

Always invest based on your own goals and circumstances. If unsure, speak to a financial adviser.

Georgina Yarwood, investment strategy analyst: Boring is good

Georgina Yarwood“It’s still steady as she goes with my investments, which might be a little boring but suits me just fine. I’m after sensible, globally diversified growth, not thrills and spills and potential sleepless nights. My approach remains disciplined too. I ignore the market ‘noise’ and I resist the temptation to check on my investments too much.

With my regular savings plan I invest each month into the same fund. The direct debit is timed to exit my account right after payday, so I don’t have to think about it or have time to miss the money going out. I prefer it that way – out of sight, out of mind.

I am still happily invested in the Vanguard LifeStrategy 100% fund as I’m looking for all-out growth and the fund gives me everything I need in one hit. My main goal is still saving for a house. I am still a few years away but my deposit is building gradually and I have flexibility around my timeline.”

Zoe Dagless, senior financial planner: aligned with my personal preferences

Zoe Dagless“Seeking to address such things as climate change is important to me, so there’s a strong ESG1 flavour to all my investments. My fund of choice is the Vanguard SustainableLife 60-70% Equity fund. I like its long-term focus and its mix of shares and bonds. I invest in the ‘accumulation’2 version by direct debit each month, as I want any income to be automatically reinvested. The more these things are automated, the less I have to think about them, and the more disciplined my approach. I haven’t got a specific aim for my ISA investments but I know that growing my wealth will give me more opportunities over the medium term, so I guess that is my ISA goal for now.

My retirement is a bit further away, so my pension investments have a higher element of risk – that is, more shares. In my SIPP (self-invested personal pension), I am 80% invested in the Vanguard ESG Developed World All Cap Equity Index fund and 20% invested in the Vanguard ESG Emerging Markets All Cap Equity Index fund. Again, it’s about aligning my investments with my personal preferences.”

David Hsu, senior equity index and ETF product specialist: value play

David Hsu“There have been lots of changes for me since we moved to the UK to be closer to my wife’s ageing parents, including a new job, a new culture and higher taxes – yes much higher taxes! In Hong Kong, where I worked for 20 years, there is zero tax on your investment profits. So, sheltering my investments here from capital gains tax (CGT) through an ISA is a no-brainer for me. The account-opening process at Vanguard also couldn’t have been easier. Once my account was funded, I was able to put my money immediately to work. I am currently invested 100% in shares via the Vanguard FTSE All-World High Dividend Yield UCITS ETF. I see it as a value play as the index it tracks contains large and medium-sized company shares in both developed and emerging markets that pay dividends that are generally higher than average.

I love exchange-traded funds (ETFs) because they are easy to trade and low cost. In a few years’ time, I may decide to diversify into lower-risk assets and invest more in bond ETFs, as this is all going towards my semi-retirement pot.”

Giulio Renzi Ricci, head of portfolio construction, Europe: adjusting the blend

Giulio Renzi Ricci“I have an ISA and a general account and I use them slightly differently so that they complement each other as part of my overall investment strategy. My riskier investments, like my equity (share) holdings, tend to go in my ISA. Over the long-term, these have the most potential to give me the highest return, so I have more reason to want to protect them from capital gains tax (CGT). That includes some exposure to the Vanguard FTSE Developed Europe ex UK ETF, which I picked up in the summer.

My general account investments are less aggressive, which means more bonds. Overall, I limit the number of funds I invest in as I adjust my mix of bonds and shares through my positioning in LifeStrategy funds. Basically, I adjust my blend of LifeStrategy 60% Equity and LifeStrategy 80% Equity funds depending on whether I want to dial up or dial down my risk exposure.”

1 ESG stands for environmental, social and governance. To find out more on what this means and Vanguard’s range of ESG funds, visit our main ESG page.

2 For more on the difference between accumulation and income fund shares, read this article.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

The eligibility to invest in either ISA or Junior ISA depends on individual circumstances and all tax rules may change in future.

For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.

Important information

For further information on the funds’ investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for these funds are available, alongside the prospectuses, via Vanguard’s website https://www.vanguardinvestor.co.uk.

If you have any questions related to your investment decision or the suitability or appropriateness for you of the products described in this article, please contact your financial adviser.

This article is designed for use by, and is directed only at, persons resident in the UK. The information contained in this article is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this article is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and/or units of, and the receipt of distribution from any investment.

Vanguard Investment Series plc and Vanguard Funds plc have been authorised by the Central Bank of Ireland as a UCITS and have been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectuses for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of, the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.

The Manager of Vanguard Investment Series plc and of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc and Vanguard Funds plc.

The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC and for Vanguard Investments Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC and of Vanguard Investments Funds ICVC.

For investors in UK domiciled funds, a summary of investor rights can be obtained via https://www.vanguard.co.uk/content/dam/intl/europe/documents/en/Vanguard-InvestorsRightsSummaryUKFUNDSJan22.pdf and is available in English

For investors in Ireland domiciled funds, a summary of investor rights can be obtained via https://www.ie.vanguard/content/dam/intl/europe/documents/en/vanguard-investors-rights-summary-irish-funds-jan22.pdf [ie.vanguard] and is available in English, German, French, Spanish, Dutch and Italian.

London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc. ("FTSE TMX"). All rights reserved. "FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE or Russell indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.

Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2023 Vanguard Asset Management Limited. All rights reserved.