Is passive for pensions & active for S&S ISA a sensible approach? Also please review my plans.

bostonerimus

Thrugelmir said:

bostonerimus said:

Thrugelmir said:

deltrotter said:

I love the way you have got such a handle on your finances at such an age. If it were me, and this is no advice, I'd be 100% global tracker.
Go to a compound interest calculator type in the amount you can invest, give it a 5% interest/compound for 25 years and then ask yourself if you would be happy with that figure...
Note: I say 5% as a relatively conservative figure for after inflation returns on a global tracker.

I never knew investing was so easy. 

Investing can be as simple or as complicated as you want to make it.

I'll rephrase my observation. I never knew making money was so easy.  Gamification of investing in the past year or so hasn't been healthy. My gut instinct is that there'll only be one outcome for many. 

The hard part comes when things fall, or climb, rapidly. This is where the long term view and following a few simple rules are a big help to the regular investor. Right now most people should be taking some profits and rebalancing their portfolios as the stock market run up is looking just a little ridiculous, but if you are buying Dogecoin or day trading that sort of strategic housekeeping usually doesn't enter the mind.

JohnWinder

bostonerimus said:

Right now most people should be taking some profits and rebalancing their portfolios as the stock market run up is looking just a little ridiculous,

Just to unpick this a bit for those following rather than leading the discussion. That sounds a bit like a suggestion to try to time the market - get in at the right time, or out. 'Don't try that at home', because all but the rarest of professionals (we don't know about the amateurs) can't get better returns than you or I can get buying/holding over the long term. Rebalancing's role is selling stocks to buy bonds because your x/y% of stocks and bonds had moved too far from the level that is suitable for you. It might make more money for you, or not, so that's not a good purpose for it, but it does keep you risk level in order.

bostonerimus

JohnWinder said:

bostonerimus said:

Right now most people should be taking some profits and rebalancing their portfolios as the stock market run up is looking just a little ridiculous,

Just to unpick this a bit for those following rather than leading the discussion. That sounds a bit like a suggestion to try to time the market - get in at the right time, or out. 'Don't try that at home', because all but the rarest of professionals (we don't know about the amateurs) can't get better returns than you or I can get buying/holding over the long term. Rebalancing's role is selling stocks to buy bonds because your x/y% of stocks and bonds had moved too far from the level that is suitable for you. It might make more money for you, or not, so that's not a good purpose for it, but it does keep you risk level in order.

Thanks, I in no way was suggesting market timing, just tacking back to your nominal asset allocation if you've diverged from it by more than your threshold.

Thrugelmir

JohnWinder said:

bostonerimus said:

Right now most people should be taking some profits and rebalancing their portfolios as the stock market run up is looking just a little ridiculous,

 Rebalancing's role is selling stocks to buy bonds because your x/y% of stocks and bonds had moved too far from the level that is suitable for you. It might make more money for you, or not, so that's not a good purpose for it, but it does keep you risk level in order.

Stocks are far from being all the same. Well diversified and constructed portfolio's avoid the worst of the volatility.