Re-balancing savings/investments

downshifted

So, following an earlier posting on here I am going to re-balance our assets. Currently in our 60s we have two thirds in various savings accounts and cash ISAs and one third in S&S ISAs. We will move to 50:50 to start with.

The one third in S&S ISAs is money we don't expect to need (except in a very dire emergency, such as going into a home) so we have gone for quite risky investments. We have had no problem overlooking the ups and downs of the market over the past 15 or so years as we knew we wouldn't need the money in the short term, if ever.

I am now looking for opinions on what else to look at as we start investing more cautious money.

The funds we are in (as a result of some old, longstanding investments as well as more sensible trackers once we saw the MSE light) are as follows:

55% Vanguard Lifestrategy 80
19% Woodford Equity
13% Vanguard Lifestrategy 60
4% Invesco Perpet Global Eq
3.3% Invesco Perpet European Eq
3.3% Invesco Perpet UK Growth
2.3% Invesco Perpet Global Smaller Cos

Investment funds were mentioned in the earlier thread: I don't know anything about them but they look complicated, with the need to compare discount on price, fees and returns.

Also, our S&S ISAs are on the Charles Stanley platform, but are now at the level where it seems a flat rate platform would be more economical (£50k plus). Should we move everything? Any recommendations?

downshifted

I wonder if there is anyone out there kind enough to give me some ideas on this please?

Linton

OK my thoughts....

You shouldnt be looking at a new cautious portfolio to run alongside your existing one which seems a bit disorganised and unfocussed. If you want two separate portfolios think what the objectives of each should be, and set up the investments accordingly.

It seems you want one of the portfolios to provide very long term growth with little concern about short term volatility. Your current portfolio doesnt seem obviously focussed on that objective. Perhaps something to be discussed in a separate thread.

Now what precisely do you want your second portfolio to provide? Short term growth? How short term? Income perhaps? I dont see "cautious" as an objective, it's a means to achieve an objective. If you want to be more cautious overall keep a higher % of your monies in cash.

As an example in my case I have two portfolios.

1) Long term growth with no particular target date to include all monies not needed for specific objectives. Invested in a very diversified range of equity funds with a strong nod towards small companies, technology, and to a lesser extent natural resources.

2) Long term income to provide a steady supplement to my annuities and drawdown ( I am retired). Invested in UK dividend producing shares and a number of non-UK funds covering as wide a range of geographies as possible.

So I suggest you think through your objectives first.

bigfreddiel

Keep it simple, keep it cheap, decide on what you want, income or growth, and of course risk and finally time in the market.

You have seven funds, check for overlap in their actual holdings and ditch those with a big overlap.

That's all for starters

fj

downshifted

Thank you very much both of you. You are right, we have not thought about objectives - we've just saved what we could over the years. I do agree on keeping it simple. I will think some more and report back. Any views on platforms?