Critique our updated 2023 retirement investment portfolio

Richard1212

eskbanker said:

Richard1212 said:

Well, what would you call it ? Cavalier ? Rash ? Daring ? Risky ? Silly ? Inappropriate ?

I wouldn't feel the need to attach a label to it but a portfolio almost exclusively (>95%) comprising equities would normally be considered fairly high risk rather than conservative.

P.S. You didn't answer the question.

Richard1212 said:

As, on this thread, you have merely questioned the wisdom of changing a 1.5% Cash ISA for a 3% Cash ISA, I wonder whether you may have misunderstood Gazza's overall portfolio and his long term intentions. 

Yes, my reference to 'something else I failed to pick up on' was about that - I missed the mention of a relatively insignificant cash ISA within OP's original listing and the other poster didn't really spell it out IMHO.  Anyway, OP hasn't really gone into any detail about his long term intentions, so none of us really knows whether or not the portfolio is appropriate for them, but his question was more about allocation.

First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way ); and as my Wealth Manager agreed when I asked for his quick opinion, as I happened to be talking to him in between posts, that's good enough for me.

Second, it is for the O/P to say whether or not his question was more about allocation. After all, he did make a significant point in his O/P that he has "a target combined DC pension/SIPP and ISA pot of £550,000 minimum which may be achievable in 3-4 years. I am planning to direct my salary sacrifice contributions to cash (or maybe Gilt Index funds?) in 2024/2025 to build up £80K wrapped cash which could be used in retirement during downturns". And I look at his current portfolio and feel that he is on target for his goal.

ColdIron

Richard1212 said:

eskbanker said:

Richard1212 said:

Well, what would you call it ? Cavalier ? Rash ? Daring ? Risky ? Silly ? Inappropriate ?

I wouldn't feel the need to attach a label to it but a portfolio almost exclusively (>95%) comprising equities would normally be considered fairly high risk rather than conservative.

P.S. You didn't answer the question.

Richard1212 said:

As, on this thread, you have merely questioned the wisdom of changing a 1.5% Cash ISA for a 3% Cash ISA, I wonder whether you may have misunderstood Gazza's overall portfolio and his long term intentions. 

Yes, my reference to 'something else I failed to pick up on' was about that - I missed the mention of a relatively insignificant cash ISA within OP's original listing and the other poster didn't really spell it out IMHO.  Anyway, OP hasn't really gone into any detail about his long term intentions, so none of us really knows whether or not the portfolio is appropriate for them, but his question was more about allocation.

First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way )

Nobody could reasonably describe the portfolio as conservative, not even the OP

GazzaBloom said:

I thought it was quite a risk on portfolio being 100% stocks save for the emergency fund, to be fair

GazzaBloom

Richard1212 said:

eskbanker said:

Richard1212 said:

Well, what would you call it ? Cavalier ? Rash ? Daring ? Risky ? Silly ? Inappropriate ?

I wouldn't feel the need to attach a label to it but a portfolio almost exclusively (>95%) comprising equities would normally be considered fairly high risk rather than conservative.

P.S. You didn't answer the question.

Richard1212 said:

As, on this thread, you have merely questioned the wisdom of changing a 1.5% Cash ISA for a 3% Cash ISA, I wonder whether you may have misunderstood Gazza's overall portfolio and his long term intentions. 

Yes, my reference to 'something else I failed to pick up on' was about that - I missed the mention of a relatively insignificant cash ISA within OP's original listing and the other poster didn't really spell it out IMHO.  Anyway, OP hasn't really gone into any detail about his long term intentions, so none of us really knows whether or not the portfolio is appropriate for them, but his question was more about allocation.

First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way ); and as my Wealth Manager agreed when I asked for his quick opinion, as I happened to be talking to him in between posts, that's good enough for me.

Second, it is for the O/P to say whether or not his question was more about allocation. After all, he did make a significant point in his O/P that he has "a target combined DC pension/SIPP and ISA pot of £550,000 minimum which may be achievable in 3-4 years. I am planning to direct my salary sacrifice contributions to cash (or maybe Gilt Index funds?) in 2024/2025 to build up £80K wrapped cash which could be used in retirement during downturns". And I look at his current portfolio and feel that he is on target for his goal.

I guess I am trying to get some confidence that our portfolio is positioned for solid growth in a buy and hold strategy of low cost index funds with quite aggressive future savings and contributions plan (much to my wife's dismay!). But, as I keep reminding her, I don't want to keep working forever and would love to join her in retirement at some point before I depart this life..!!

I hope this portfolio can ride the ups and downs and deliver some solid growth in line with global equity markets over the longer term up to and through into retirement without too much tweaking. I want to try and stop looking at Google Finance and worrying about whether indexes are in the red or green today, worrying about whether we are heading for recession, interest rate etc. not easy as it's the future dream that propels me through these boring "autumn of my working life" tedious work days... 

eskbanker

Richard1212 said:
First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way ); and as my Wealth Manager agreed when I asked for his quick opinion, as I happened to be talking to him in between posts, that's good enough for me.

No, that still doesn't answer the question ("what do you see in it that fits that description [conservative]?"), but it seems unlikely that OP will actually welcome further discussion about the label you chose to attach to his portfolio, so suspect that this little digression has run its course....

GazzaBloom

eskbanker said:

Richard1212 said:
First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way ); and as my Wealth Manager agreed when I asked for his quick opinion, as I happened to be talking to him in between posts, that's good enough for me.

No, that still doesn't answer the question ("what do you see in it that fits that description [conservative]?"), but it seems unlikely that OP will actually welcome further discussion about the label you chose to attach to his portfolio, so suspect that this little digression has run its course....

I'm happy to keep the discussion going, I am intrigued at the 'conservative' label, but take it as a compliment. We all see things differently. A colleague at work is pretty investing the same way with his pension and says he has a conservative risk appetite! It's 100% stocks!

I'm not sure what I would need to do to make it less conservative apart from buying the latest meme stock, Crypto token or NFT to be honest!

eskbanker

GazzaBloom said:

eskbanker said:

Richard1212 said:
First, re your PS : The answer is "IMHO it is best looked on as rather conservative ( in a good way ); and as my Wealth Manager agreed when I asked for his quick opinion, as I happened to be talking to him in between posts, that's good enough for me.

No, that still doesn't answer the question ("what do you see in it that fits that description [conservative]?"), but it seems unlikely that OP will actually welcome further discussion about the label you chose to attach to his portfolio, so suspect that this little digression has run its course....

I'm happy to keep the discussion going, I am intrigued at the 'conservative' label, but take it as a compliment. We all see things differently. A colleague at work is pretty investing the same way with his pension and says he has a conservative risk appetite! It's 100% stocks!

I'm not sure what I would need to do to make it less conservative apart from buying the latest meme stock, Crypto token or NFT to be honest!

Yes, that was my point - there is no universally-agreed definition of risk, but most scales would position 100% equities as the top of the range, or close to it, so I genuinely don't understand the basis on which the 'conservative' label was used, and it appears that we're unlikely to receive any meaningful clarification!  And having used that, suggesting a move down the risk scale by introducing bonds would seem counterintuitive....

ColdIron

GazzaBloom said:

I hope this portfolio can ride the ups and downs and deliver some solid growth in line with global equity markets over the longer term

Just an observation, but if you are looking for growth in line with global equity markets without having to look at Google Finance all the time, or too much tweaking (and having a happy wife), a global equity tracker does seem to suggest itself and is quite aggressive in its own right. It seems to tick many of your boxes

GazzaBloom

ColdIron said:

GazzaBloom said:

I hope this portfolio can ride the ups and downs and deliver some solid growth in line with global equity markets over the longer term

Just an observation, but if you are looking for growth in line with global equity markets without having to look at Google Finance all the time, or too much tweaking (and having a happy wife), a global equity tracker does seem to suggest itself and is quite aggressive in its own right. It seems to tick many of your boxes

Yeah I guess, I just wanted a little more UK than the global market cap, heaven knows why when you read the news here though...

eskbanker

GazzaBloom said:

ColdIron said:

GazzaBloom said:

I hope this portfolio can ride the ups and downs and deliver some solid growth in line with global equity markets over the longer term

Just an observation, but if you are looking for growth in line with global equity markets without having to look at Google Finance all the time, or too much tweaking (and having a happy wife), a global equity tracker does seem to suggest itself and is quite aggressive in its own right. It seems to tick many of your boxes

Yeah I guess, I just wanted a little more UK than the global market cap, heaven knows why when you read the news here though...

But surely you could easily achieve that by using a fully cap-weighted global tracker and then also a UK-specific one to adjust the UK weighting?

ColdIron

GazzaBloom said:

ColdIron said:

GazzaBloom said:

I hope this portfolio can ride the ups and downs and deliver some solid growth in line with global equity markets over the longer term

Just an observation, but if you are looking for growth in line with global equity markets without having to look at Google Finance all the time, or too much tweaking (and having a happy wife), a global equity tracker does seem to suggest itself and is quite aggressive in its own right. It seems to tick many of your boxes

Yeah I guess, I just wanted a little more UK than the global market cap, heaven knows why when you read the news here though...

That should be easily achievable with one of the many developed world/all world/all cap trackers and a cheap FTSE All Share