Youngish and inexperienced - How am I doing?

MoneySavingAlly

Hello all,
35 year old bloke wanting some opinions/feedback/criticism on my investments? I don't have any dependents at the moment so I can invest/pay debt a fair bit every month.
My breakdown - 

Assets
Total cash	£7,000
S&S ISA (Vanguard FTSE Global Index fund)	£22,000
Lifetime ISA (Vanguard FTSE Global Index fund)	£22,000
Other	£5,000
Home & BTL properties	£580,000
DC Legal & General pension	£15,000
DB Pension (1/60)	£2,000
Total	£653,000
Liabilities
Family             (Interest free-no rush to pay)	£30,000
Mortgages     (Interest cost £420 PCM)	£257,000
Total	£287,000
Networth	£366,000

Thanks

Alistair31

£580k in property seems overweight, even if good going. 

MoneySavingAlly

Alistair31 said:

£580k in property seems overweight, even if good going. 

Hi Alistair31, I have thought that, that's why I am no longer investing further in BTL and focusing more on shares/stocks now. 

Thanks

Thrugelmir

Are you on target to meet your personal objectives?  I'd personally prioritise pension provision over a BTL. Far more tax efficient. 

MoneySavingAlly

I have been managing BTL properties over 10 years so I have more confidence working with BTL.

Malthusian

Alistair31 said:

£580k in property seems overweight, even if good going. 

That includes his house though, which doesn't count as an investment if the conversation is about asset allocation. (And it is - "overweight".) Nobody sells their house because the stockmarket has gone down and they need to rebalance. Or builds an extra bedroom because vice versa. 

Arguably you should also deduct the mortgage from the BTL.

OP - are you making the most of your pension? There seems to be a lot in the ISA compared to the pension. Do you get the maximum matched contributions; are you a higher rate taxpayer; does your company offer salary sacrifice?

What's "other"?

cattie

Well done, I wish I'd been in such a position when I was your age, but alas left to bring up my son alone with no support from my ex. (

Personally I'd not be comfortable being in debt whilst having good savings, even if loan was from family. Is your home mortgaged & if so is it a repayment mortgage? If interest only I'd be wanting to switch to repayment so I could see an end then be working my way to overpay & aim to reduce the term of my mortgage before approaching retirement.

MoneySavingAlly

Thrugelmir said:

Are you on target to meet your personal objectives?  I'd personally prioritise pension provision over a BTL. Far more tax efficient. 

I agree in regards to tax treatment of BTL. 
This year I was aiming to reduce the mortgage debt and invest more in S&S but I'm now thinking because my mortgage debt is all under 2% it may be wiser to keep servicing the debt and invest?  The home mortgage is an offset type and I've got over 80k offset against it.
Thanks 

MoneySavingAlly

Malthusian said:

Alistair31 said:

£580k in property seems overweight, even if good going. 

That includes his house though, which doesn't count as an investment if the conversation is about asset allocation. (And it is - "overweight".) Nobody sells their house because the stockmarket has gone down and they need to rebalance. Or builds an extra bedroom because vice versa. 

Arguably you should also deduct the mortgage from the BTL.

OP - are you making the most of your pension? There seems to be a lot in the ISA compared to the pension. Do you get the maximum matched contributions; are you a higher rate taxpayer; does your company offer salary sacrifice?

What's "other"?

Hi Malthusian,

I have a salary sacrifice DB pension with employer. I am not so clued up on pensions, but I know my employer contributes 10% and I match.  I would like to invest further in maybe a SIPP, I have 22k in the LISA too, but I am a little reluctant to lock more money away in a pension just in case I need it.  It is likely within the year me and my partner will be moving in together and possibly starting a family, well that is the plan!

Thanks

Alexland

Is your total income causing you to pay any higher rate tax? If so you should really look into additional pension contributions as £15k is low for your age (OK I know theres a LISA too but it's still not great). I don't see why you would reduce your mortgage debt provided it remains affordable and the LTV on each property is good enough to get access to the best interest rates. The offset means you have a good cash buffer that would last a while. A well invested pension should grow faster than the mortgage interest rate.

MoneySavingAlly

MoneySavingAlly said:

Malthusian said:

Alistair31 said:

£580k in property seems overweight, even if good going. 

That includes his house though, which doesn't count as an investment if the conversation is about asset allocation. (And it is - "overweight".) Nobody sells their house because the stockmarket has gone down and they need to rebalance. Or builds an extra bedroom because vice versa. 

Arguably you should also deduct the mortgage from the BTL.

OP - are you making the most of your pension? There seems to be a lot in the ISA compared to the pension. Do you get the maximum matched contributions; are you a higher rate taxpayer; does your company offer salary sacrifice?

What's "other"?

Hi Malthusian,

I have a salary sacrifice DB pension with employer. I am not so clued up on pensions, but I know my employer contributes 10% and I match.  I would like to invest further in maybe a SIPP, I have 22k in the LISA too, but I am a little reluctant to lock more money away in a pension just in case I need it.  It is likely within the year me and my partner will be moving in together and possibly starting a family, well that is the plan!

Thanks

Sorry Other is money I am owed!