Critique my investment / savings please! All comments welcome :)

andrewm1981

A year ago, I came into some money, which I've invested in a few different things. I asked advice on here about 6 months ago, but my circumstances have changed slightly, so rather than keep asking I did my own thing. But now I feel its time for a review:

Firstly, about me:

I'm 34, live with my fiancee, we're getting married in 6 months (cost me £10K), then going on around the world honeymoon for 6 months (cost to me £40K)

We have a mortgage on our house in london, value is £350K, mortgage of £230k left, paying at .99% above BOE.

I recently left my job (driving me insane) so I have a view to getting a job in finance / civil engineering on about £25k-28K when I return in April. I'll ned some £££ in reserve to keep me going for a few months until thats sorted.

My fiancee earns £30k.

I have £320K

I would describe myself as fairly risky, looking for long term gain, rather than being concerned with where I am next month or year financially. I don't really want to lose the lot though.

Current investments:
£15K in Santander 123 at 3% (joint bills)
£30K with HL. - 40% funds, 50% uk shares, 10% int shares (I can print the X-ray analysis if anyone can help with that!) This is my isa.
£120k with Ratesetter. £80k in 1monthly, at 3%, 30k in 3 year at 5.8%, 10K in 5 year at 6%
£80K in savings account, 120 day, at 1.6%
£75k in own current account earning about 1p a year.


The obvious points to note is my current account. Ill switch most of this into something paying 1%, or maybe a retested competitor

I have a minimal pension (15k pot), when i join next company, I'll contribute maximum amount to that.

My love is property, when i get my job in a year, assuming prices haven't leapt another 10% id like to get a couple of buy to lets. Id like an element of liquidity in my savings for this reason,

My thought process for what Ive done is:

40% in ratesetter, giving on average 4%. Not protected, but fairly safe and 4% isn't terrible.

10%in shares, biggest risk but long term most profitable hopefully

50% in banks which is guaranteed but paying terribly.

Im thinking about buying into premium bonds with £50k, although with no tax liability i feel like maybe its not the wisest. Gold seems expensive, not super keen on more shares as there could be a dip coming.

any advice?

You can tell me its all rubbish and start again if you like!!

Regards

Andrew

Radiantsoul

90% cash looks pretty risk adverse to me, but I would be scared about holding so much with a P2P lender. It feels like the asset allocation of a person in their mid 90s....

webnibbler

andrewm1981 wrote: »

I would describe myself as fairly risky

If by this you mean you have a high tolerance to risk the rest of your post would suggest otherwise. With only 10% in funds or shares at 34 is very risk averse. It sounds like the volatility of markets makes you nervous which is fine, but if you really take a long term buy and hold view - the dips and rises aren't of any significance. I would view BTL as far more risking than long term buy and hold investing. Also holding so much cash is guaranteeing the risk of loosing to inflation over the long term.

Me, I would max out my ISA allowance each year with all that cash and max out pension contributions. And leave BTL the hell alone - it's way too popular right now and due a correction IMO.

andrewm1981

Yes I do mean that I consider myself fairly risky, but you're quite right, it doesn't seem so. I maxed my ISA last year and this year, hence the 30K in shares.

Ive spent a lot of today thinking about my finances, and after reading about the vanguard life strategy thread, I've started a £200/month debit into the life strategy 100% acc. makes me feel better for not having any considerable pension for the time being.

Webnibbler, I really do love property - probably for its tangibility, plus with the interest rates low, there is good profit to be had. IMO. I this topic has been discussed to its death so I'll leave that alone (for now!).

Im not sure where to move the money held in cash then - I need £70k easily accessible for my next 1 years plans, lumping a further £50K in shares now seems a bit brave for my liking....... or is it!?

colsten

£15K in a pension at age 34 and £30K in ISAs when you have £320K sloshing about doesn't seem the best distribution. You should have a lot more in pension and ISA.

You should be paying a good IFA to help you make the best of your money. Find one by asking family and friends for recommendations, or on unbiased.co.uk.