Am I well balanced?

Options
Current assets are
50% of a house worth £130k
(Mortgage 72k)
£1100 in FTSE tracking fund isa 85% equity, adding £100 a month
£1000 cash at 5%
£300 in sipp (only just started), £300 thereafter per month into international small cap fund, 100% equity

As I get older might rebalance sipp, possibly
«13456789

Comments

  • dunstonh
    dunstonh Posts: 116,621 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    £1100 in FTSE tracking fund isa 85% equity, adding £100 a month

    That is not balanced. It is 100% into a single sector (UK equity).

    The UK is rarely the best investment sector. The 250 has its moments but the 100 is consistently dire. All share is middle of the road.

    You should be looking at multi-asset. Although your amount is very small and it really doesnt matter what you invest in with a regular premium until you get to nearly £10k.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • eskbanker
    eskbanker Posts: 31,489 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Most on here would recommend an emergency fund of 3-6 months worth of living costs in readily-accessible cash form before embarking on (non-pension) investments....
  • System
    System Posts: 178,102 Community Admin
    Photogenic Name Dropper First Post
    Options
    Dunston - when considering the house though, this is my attempts to move away from being so heavily propertied (and bonded with mortgage)
    - the isa itself isn't balanced, but its an attempt to improve my overall balance

    My job isn't balanced, I rely 100% on one company, and equities should help make that safer as my income will be more diverse

    Eskbanker - I should, in a way the isa is me building up an emergency fund shortly after moving anhialated the last one

    Should be more cash I suppose, calculated risk
  • System
    System Posts: 178,102 Community Admin
    Photogenic Name Dropper First Post
    Options
    Sipp is to balance the isa in a way, away from large cap UK
  • chockydavid1983
    Options
    I would say any emergency fund is held in easily accessible cash, i.e. current or savings accounts and a minumum of 3 months worth of expenses.
    The investments in both your S&S ISA and SIPP should be more diversified. See things like Vanguard Life Strategy for an idea of asset allocations. There are other companies that provide similar funds.
  • System
    System Posts: 178,102 Community Admin
    Photogenic Name Dropper First Post
    Options
    In terms of asset classes what am I missing? As a whole I see myself
    Property- too much %
    Bonds - too much via mortgage
    Equity - large UK, small international
    Cash - do need more...
  • ajdj
    ajdj Posts: 567 Forumite
    First Post First Anniversary Combo Breaker
    Options
    You sound like someone who's asked for advice and don't like what they hear. You've had some great pointers already...
  • System
    System Posts: 178,102 Community Admin
    Photogenic Name Dropper First Post
    Options
    I'm looking at the overall picture rather than individual funds, in open minded to including something that's missing, and I do accept needing more cash
  • badger09
    badger09 Posts: 11,247 Forumite
    First Post First Anniversary Name Dropper
    Options
    How would you cope if you lost your job, or were unable to work for some time?

    You might consider putting your S&S ISA aspirations on hold for a while until you have built up a decent emergency fund in cash, using high interest current accounts and regular savers.

    While you are building this up, use the time to research into investment strategy, asset diversification, funds, platforms etc.
  • System
    System Posts: 178,102 Community Admin
    Photogenic Name Dropper First Post
    Options
    Badger - unlikely to lose it completely, but if I did then tax credits would pick up. I do need more cash, though am seeing the isa as almost cash and an alternative source of income

    I think I have more bases covered than most but am trying to check if I need to cover any loose ends - I have no micro cap but don't feel a compelling need. I have only limited big cap international, (in isa fund of funds) that's one thing I could
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.7K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.9K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards