Where would you put 150k in investments now?

dunstonh

I like Warren's plans but remember that isn't how he made his billions. It's the advice he gave to the fund that would look after his wife's legacy should he pre decease her and it was to include 10% US Government bonds, I guess sequence of returns risk mitigation? He didn't predecease her. For an easy answer it's good advice for most people and historically beat an awful lots (majority?) of other strategies over the longer term.

He also said it to a room of people who were domiciled in dollars.  Not Sterling.

kempiejon

He also said it to a room of people who were domiciled in dollars.  Not Sterling.

And as I'm a bit racist I make sweeping generalisations about Americans and say that perhaps to Mr B the rest of the world's markets are not as good and the home bias is deserved because Merica is best. 

My portfolio has much benefited since I opened up from FTSE to global markets. 

So back to the OP @Nevbear

I was thinking vanguard S&P 500 ucits etf but don’t know what effect recent volatility would mean for this right now? Would an all world fund be better? 

You pick what suits you. If I had just one to pick I'd prefer global even if at the end of the experiment S&P proves better but that's decades away for me.

GazzaBloom

JohnWinder said:

I don't know which side of that argument is right, but this article argues US stocks don't reflect the global market very well. https://www.ifa.com/articles/global-diversification-international-securities

Interesting, if a bit flimsy on the data, I would like to see more on this analysis. However, regardless of stock price and market move correlation or otherwise, my point stands, the success, earnings, costs and profits of many of the large US domiciled companies does not rely solely on the US domestic economy. This point is often missed when considering portfolio weightings towards the US listed stocks or indexes.

JohnWinder

If it's data you want you'll be rewarded in spades if you get the pdf of the 1998 research cited as a reference. The authors are confident where a company is listed has a bearing on valuation despite earnings coming from elsewhere. I have no idea how big that effect is. My sense is that holding US stocks having foreign earnings isn't the same diversification as owning the foreign stocks as well. There's related discussion here as well: https://www.bogleheads.org/forum/viewtopic.php?t=317789

Linton

GazzaBloom said:

JohnWinder said:

I don't know which side of that argument is right, but this article argues US stocks don't reflect the global market very well. https://www.ifa.com/articles/global-diversification-international-securities

Interesting, if a bit flimsy on the data, I would like to see more on this analysis. However, regardless of stock price and market move correlation or otherwise, my point stands, the success, earnings, costs and profits of many of the large US domiciled companies does not rely solely on the US domestic economy. This point is often missed when considering portfolio weightings towards the US listed stocks or indexes.

It might be true, but in my view irrelevent when considering portfolio construction.  A serious problem is that of diversification.  Sector allocations differ greatly between geographies. Even in the US not all large companies are dependent on global business. Those that do are heavily weighted towards Tech.

The point that large US domiciled companies do not rely solely on on the local economy applies equally to most major markets across the world.  So on that basis for example why not restrict your investing to France or Japan or perhaps more justifiably, China.

Bostonerimus1

Nevbear said:

For long term not short term use. 

No mortgage. Pensions full and will provide good income. Rental property but selling as it’s a headache/regulations etc. Some money in stocks and shares. Some money in NSI bonds etc. Used ISA allowance. Full PB’s in family. 

I was thinking vanguard S&P 500 ucits etf but don’t know what effect recent volatility would mean for this right now? Would an all world fund be better? 

Many thanks

1) Pay off all high interest debt.
2) Put 6 months' to a year's spending in the bank for emergencies.
3) Make extra pension contributions into a low cost index fund, if you have a long time horizon use a global equity fund.
4) Same as 3) but for your ISA.
5) Same as 4) but for General Investment Account
6) Make extra mortgage payments.

chamelion

Bostonerimus1 said:

Nevbear said:

For long term not short term use. 

No mortgage. Pensions full and will provide good income. Rental property but selling as it’s a headache/regulations etc. Some money in stocks and shares. Some money in NSI bonds etc. Used ISA allowance. Full PB’s in family. 

I was thinking vanguard S&P 500 ucits etf but don’t know what effect recent volatility would mean for this right now? Would an all world fund be better? 

Many thanks

1) Pay off all high interest debt.
2) Put 6 months' to a year's spending in the bank for emergencies.
3) Make extra pension contributions into a low cost index fund, if you have a long time horizon use a global equity fund.
4) Same as 3) but for your ISA.
5) Same as 4) but for General Investment Account
6) Make extra mortgage payments.

or just look at a prettier flow chart
https://ukpersonal.finance/flowchart/

AAZ

All excellent comment here
For global tracker I use VWRL
Vanguard Lifetsrategy 100 is also a good option

eskbanker

Nevbear said:

It’s part of my pension lump sum as I have just retired. I’m currently higher rate tax payer.

Do you still have the option of reconsidering whether taking the lump sum is the most sensible choice, rather than leaving the money in there and drawing down more annually instead?  Having said that, if you'll still be a higher rate taxpayer even just from (reduced) pension income then the tax-free lump sum may be more attractive....

eskbanker

AAZ said:

All excellent comment here
For global tracker I use VWRL
Vanguard Lifetsrategy 100 is also a good option

'Good' by what benchmark and for achieving what objective?  The non-100 VLS range have their plus points but the 100 is usually seen as the least appealing, especially when compared with cap-weighted trackers, some at lower cost....