S&S Isa Mix

ONOFF

dunstonh wrote: »

I'd be more inclined to ignore Tim Hale on the asset allocation giving that focus on index linked gilts at a time when they are so out of favour and are really only offering downside protection with little or no upside. The most logical option on the current value is a multi-asset fund. Not single sector funds trying where you try and be the fund manager.

I've picked global index trackers rather than manager/funds for 90% of my shares portfolio?

bowlhead99

ONOFF wrote: »

We do not have pensions because surplus cash was used to pay of property debt

If this money is for retirement and you have an emergency fund and won't need to access this until at least your late 50s, it would make sense to make the investments that you are planning to invest in S&S ISA, in a pension instead.

You will get tax relief on your contributions now, but you will likely have spare annual personal allowance in retirement before state pension becomes available so you can have tax relief now and take large parts of the pension pot out tax-free later within your annual allowances, in addition to the tax free lump sums . That is basically, free money.

And, in two months time, you could consider using LISA instead of ISA, as you can get 25% free government bonus on everything you put in (up to £4k a year each) between this April and age 50, drawn tax free from age 60. So of the £15k you put in to your ISA, it probably makes sense to remove about half of it to put in pension now and put the other half in LISA in April.

Also having an S&S ISA with a large cash component earning nothing in the way of interest seems like it is a waste. Either stick it in a Cash ISA for better rates, bank accounts for much better rates.

ONOFF wrote: »

dunstonh wrote: »

The most logical option on the current value is a multi-asset fund. Not single sector funds trying where you try and be the fund manager.

I've picked global index trackers rather than manager/funds for 90% of my shares portfolio?

Well, 90% of your shares portfolio is under half your total portfolio (90% of 55% =49.5%) , and the rest is stuffed with cash and single sector.

And of the 90% of 55% of your portfolio that's 'global index tracker', you've actually picked a curious mix of world-including-emerging-markets, world-excluding-emerging-markets, and pure emerging markets, to do this 'global index trackers' piece, which presumably you will be rebalancing from time to time. The way it is set up (including the health fund) means that the 55% of your portfolio that's in equities is split to give you only 5.5% in the UK, 94.5% overseas; and of the overseas piece, over a fifth of it is emerging markets.

That is a pretty high risk set of allocations for someone who is only willing to risk about half of their portfolio in equities and then needs to hold large amounts of low-return bonds and cash to act as a buffer because the equities were as high risk as possible.

Frankly, although it might be fun to read a book and then decide to turn yourself into an investment manager by juggling nine funds, you could just instead buy a fund with professional allocations targeted to your risk profile, and be done.

dunstonh

I've picked global index trackers rather than manager/funds for 90% of my shares portfolio?

But you are making management decisions in the asset allocation, have no property allocation (as the property fund is property share) and have decided to have other specialist funds and a limited fixed interest allocation. All of those things are management decisions.

TheTracker

dunstonh wrote: »

I'd be more inclined to ignore Tim Hale on the asset allocation giving that focus on index linked gilts at a time when they are so out of favour and are really only offering downside protection with little or no upside. The most logical option on the current value is a multi-asset fund. Not single sector funds trying where you try and be the fund manager.

Hale's most recent edition (3rd, 2013), is bearish on linkers and indeed advocates investors explore active funds for such linkers.