Advice needed on portfolio pls

JTT74

Hi,

I'm 44, wife is 43. we plan to retire at 55-60 ish.
I am looking at building the right portfolio.

Outside of my company pension and SIPP:-

We have around 90k in cash/offset mortgage (2% roughly mortgage rate)
20k in Funding circle
35k in a nutmeg ISA (average 8 on risk level)
34k in Vanguard retirement 2035 fund ISA
And about 60k in company shares, mostly from my job/company

We want to invest the full 20k each ISA limit per year, plus my wife isn't working so she can invest another 20k or so without tax etc.

Given above portfolio, what would people recommend pls?

I plan to draw down about 20k per year after in about 10-15 years

Thanks so much!

El_Torro

My first thought is that you're pretty high risk. Funding circle is peer to peer? I would reduce that holding (not necessarily to 0)


Also, £60k in company shares is pretty high. Are these shares you have bought through a scheme at your employer? Either way I'd get rid of those when you can, assuming it's a good time to sell. Replace it with a fund / funds.

JTT74

Hi, yes these are shares acquired as sharesaves and long term incentives etc

El_Torro

JTT74 wrote: »

Hi, yes these are shares acquired as sharesaves and long term incentives etc

It was probably a good idea to get them in the first place. However I would argue that holding them for longer than is necessary is not a good idea. What if the company goes pop? You've lost your job and your investments.

dunstonh

JTT74 wrote: »

Hi, yes these are shares acquired as sharesaves and long term incentives etc

And have you diversified them yet?

I recall a number of bank staff millionaires through profit sharing and share schemes......prior to the credit crunch.

JTT74

Sone yes, I currently have around 40k from company a and 20k from company b sitting as ordinary shares

Worth noting that I will continue to receive long term incentives of shares in company a of between 50-100k per year ongoing..

So gradually sell to avoid CGT I guess...

And then where would people recommend I invest to get a rounder portfolio?

Thx!!

msallen

I don't think that £20K in peer to peer is particularly high given it's ratio to your other holdings. However I would strongly advise that you spread your p2p over multiple platforms rather than having it all in one.

Alexland

I don't understand why you are with Nutmeg when you have seen the advantages of investing directly with Vanguard. Nutmeg managed portfolios (risk measured out of 10) are much higher cost than LifeStrategy on the Vanguard Investor platform and likely to deliver a similar result before fees.

My mother accumulated a lot of employee purchase shares which devalued and never really recovered after the last stock market crash. I would never have a large holding in an individual company.

If you are going to hold P2P then it's probably worth diversifying across platforms as they all seem a bit unstable and I am sceptical that they offer an attractive a risk adjusted return.

Alex.

JTT74

Vanguard is a very recent change (in progress) from another Nutmeg account.

So I will be looking for options for the other one soon.

Hence this post, any ideas - don!!!8217;t want too much in the same funds from vanguard?

msallen

JTT74 wrote: »

Hence this post, any ideas - don!!!8217;t want too much in the same funds from vanguard?

So you're happy with 60K in a single stock, but not with more than 34K in a globally diversified fund hold thousands of stocks?
You may want to rethink your position.

JTT74

No I said I would potentially gradually sell to avoid CGT and reinvest.