Advice on current saving + investments

pedro789

Hi
Always impressed with knowledge + insight on here, just wanted to get any thoughts/observations on current saving/investments.

I'm 50 working in ft employment, earning £40,000
£70,000 in cash isas
£40,000 in S&S isa (Vanguard Lifestrategy 60%)
BTL property (£500 per month)
Local govt pension

Would appreciate any advice on:

Do I have too much cash in isas? 
What type of investment/fund would complement Vanguard LS 60?
Can I drip feed some of cash isa into new S&S isa?
Should I consider SIPP to protect against inheritance tax?
Should I have IFA?

Thanks in advance.

sevenhills

pedro789 said:

£70,000 in cash isas
£40,000 in S&S isa (Vanguard Lifestrategy 60%)

You are missing out on pension tax relief, you could have a SIPP instead of an ISA.

El_Torro

Personally I think you have too much cash. Between 3 and 6 months worth of expenses is generally recommended for most people who are working.

VLS 60 works pretty well on its own, you don't "need" any more funds. Perhaps a smaller companies fund for a small part of your investments would be a good compliment, certainly not essential though.

You can transfer as much of your Cash ISA into a S&S ISA as you want. As long as you don't take the money out first a transfer does not count as new money.

You can consider a SIPP. You can't access money in a SIPP until you're at least 55 but since you're 50 that shouldn't be a big hardship. How does your employer pay into your pension? If it's by salary sacrifice you're better off sacrificing more of your salary and using your Cash ISA for living expenses.

You can have an IFA if you think you would benefit from it. You might find though that your investments are a bit on the low side for an IFA to make a positive difference. No harm in making some inquiries and perhaps an initial (free of charge) meeting if you want to go that way though.

MX5huggy

Does you employer offer Salary Sacrifice AVC’s? 

JohnWinder

pedro789 said:

Should I have IFA?

One reason you would is to protect your investments from any bad emotional reactions leading to behavoural pitfalls seen often enough. 

For example, as the next major financial crisis rapidly unfolds, if every fibre in your body wants to liquidate every asset, while many around you are yelling ’sell’, your IFA could be the one stopping you if you take notice of her, reminding you that you have a long term plan and it shouldn’t be derailed. Can you resist your urges and follow her advice? And how do you know she’s more right than you?

That’s one good reason. Would it work for you?

dunstonh

Do I have too much cash in isas? 

Impossible to answer on the limited information you have given.  However, with a BTL and a relatively lowish risk profile, the cash balance is in the ballpark.   However, it really depends on your objectives and how you view the cash in relation to the investments.   e.g.  take the balance of the cash and VLS60 and you don't really have a 60% split.  Only £24,000 of your £110,000 is in equities. A 22% allocation.

What type of investment/fund would complement Vanguard LS 60?

Nothing.  VLS is a multi-asset fund and not really designed for you to play around with.

Can I drip feed some of cash isa into new S&S isa?

yes

Should I consider SIPP to protect against inheritance tax?

Insufficient information to answer but generically, pensions are outside of the estate and ISAs are not.

Should I have IFA?

Insufficient information to answer.   An IFA is there to make sure you do what is best for you, do the work and stop you doing things wrong.    Only you can decide if that is something you need and/or want.     Some DIY very well. Some DIY very badly.  its not really any different to other things you can do yourself or get someone to do it for you.

At the moment, you are asking us for solutions (should I do this or that).   However, we don't know what issues you are trying to resolve or achieve. i.e. what are your objectives and?

sairy.gamp

pedro789 said:

Hi
Always impressed with knowledge + insight on here, just wanted to get any thoughts/observations on current saving/investments.

I'm 50 working in ft employment, earning £40,000
£70,000 in cash isas
£40,000 in S&S isa (Vanguard Lifestrategy 60%)
BTL property (£500 per month)
Local govt pension

Would appreciate any advice on:

Do I have too much cash in isas? 
What type of investment/fund would complement Vanguard LS 60?
Can I drip feed some of cash isa into new S&S isa?
Should I consider SIPP to protect against inheritance tax?
Should I have IFA?

Thanks in advance.

Here is the opinion of HL on how much cash you should hold:

https://www.hl.co.uk/investment-services/active-savings/how-much-cash-should-you-hold