Asset Split %.

SpeedSouth

Hi,

Just wondering how cautious others view my current diversification, and whether others would be looking to ramp the risk/contribute elsewhere given I'm in a relatively good place at present. After some posts a year and a bit back this is currently where I am with pots and monthly additions.

34 years old, single salary into house and 3 kids.

24k in cash savings (high i realise, but was made redundant 6 months ago, and with a young family I don't really want to drop this, especially given its making 4.2% average at present) Will add the £4k into S&S ISA or P2P though to leave £20k in savings

22k in VLS 60 ISA, contributing £600 p/m
20k (ish) in work pensions contributing £485 p/m plus employers contribution (total 18%)
MIssus contributes max £3600 into SIPP VLS80 p/a
£500 in p2p (looking to up this slowly to around £2k only putting £100 in per loan but it's a long game to do so)
Home - 150k equity, repayment @ 1.99
BTL - £70K equity, yielding 3.9% at full value, but 6.6% on the "invested" equity (yield keeps coming down as the value just keeps increasing), Interest only @ 2.25

Obviously very heavily property based but the BTL was the left over when we moved in together and has had the same tenants for 4 years, and it's all tax free for the missus currently.

bigadaj

All seems fine to me.

Everyone has a different view of their personal financial situation and preferences but you've justified your reasoning which seems sound.

A good return in cash makes that sensible and in my opinion liquidity is always important, as you've found out redundancy or some other shock can affect many people at short notice, and forced sales of equity investments are rarely good.

Your current percentage of wealth in equity is low, but is increasing, and the buy to let seems hassle free and profitable, if those tenants move out then may be a time to review, particularly as increasing equity will mean that capital gains tax could become liable at some point in the future.

Are the savings in your missus name currently, so making use of her tax allowance, can't really think of much else to be honest.

TheTracker

Looks sensible to me.

What are your goals? It looks like you have about 136k, including BTL but excluding home, and are contributing £1385pm. If you are able to achieve 4%pa return after fees and inflation, and are able to continue that level of contribution after inflation, you'd hit £1m around age 58. You didn't mention the employer contribution amount, that'd make the situation rosier.

I'd start looking at your long term planning to ensure you are contributing to the level that meets your goals.

SpeedSouth

Savings are split between us maximising the 5% accounts, so all tax free at present.
Before I got my head round it all we were OP the mortgage, rather the S&S route but prioritising that now given the interest rates and the safety blanket we currently have.

We are actually already liable for CGT it's increased by circa £50k since she owned it. I do need to look into the amount this would be after the various exemptions. As well when we do come to sell we'd need to transfer it to joint names to get my allowance as well.

Goals..
I suppose at the moment they are not particularity defined. In no particular order these are the current thoughts

Kids - Uni fees, help as they reach the late teens (still 14 years off)
Retirement - the idea of getting out before SP at 68 sounds very appealing
7-13 years time - Kids will no doubt get more expensive as they are already so want to have them level of comfort for the odd nice holiday/large expense

hennerz

Sounds like you're doing well to me. Good work.

Startup1985

Nothing at all to worry about there, I would say an enviable position