What else can I invest in

london21

Hi All,

Looking for some suggestions I am in my late 30's.

I have 

• Investments: £190,465 (S&P 500 index fund)  £132,000 in ISA.
• Cash & Savings: £179,804 (Chip, Tandem)
• Premium Bonds: £50,000 

I have about £106,000 in my pension currently and have increased my contribtuion to £2696 per month. I am a higher rate tax payer.

Some considerations

Increase exposure to equities for long-term growth, I have made wrong choice in the past hence I have stayed away from shares but was looking at Twylor Wimpey but looks a bit unstable.

Diversify beyond the S&P 500 (e.g., global index funds, emerging markets).

Reduce cash holdings.

Cisco001

Have you bought a property yet? Or do you intend to?

Exodi

Sorry I'm not clear on your investments -

Are you saying in your ISA you have ~£322k in total, made up of £190k in S&P500 and £132k in Cash? Or is the S&P holding in a GIA, if so what's your ISA invested in (if anything)?

If the former, it would mean you are sitting on £312k in cash (some might even include the premium bonds and say £362k in cash) with a total portfolio value (ex pension) of £552k. That's ~60% of your portfolio as cash.

Given your age (or more acutely, your likely long investment horizon), the decision to keep most of your portfolio as cash is very risky.

Did you have something you'd earmarked to spend the money on (e.g. property)? Rachel Reeves will greatly appreciate the savings interest you will be paying on that £180k.

Albermarle

I have about £106,000 in my pension currently

How is this invested ? 

 but was looking at Twylor Wimpey but looks a bit unstable.

Investing in individual shares is very risky. If you do go down this route you need to do a lot of research and for sure invest in a lot more than just one share. Or make it easy and just stick to global funds etc .

Voyager2002

Diversify. 

There are many thousands of companies in the world, so why restrict yourself to just 500 of them. And even worse, all of your chosen 500 are in the most highly over-valued market in the history of commerce. And they all fall within the same jurisdiction, so that if (God forbid) a lunatic were to win the election and ruin that country's economy, your entire investment would be at risk.

london21

Cisco001 said:

Have you bought a property yet? Or do you intend to?

Yes, I have a property. 

london21

Exodi said:

Sorry I'm not clear on your investments -

Are you saying in your ISA you have ~£322k in total, made up of £190k in S&P500 and £132k in Cash? Or is the S&P holding in a GIA, if so what's your ISA invested in (if anything)?

If the former, it would mean you are sitting on £312k in cash (some might even include the premium bonds and say £362k in cash) with a total portfolio value (ex pension) of £552k. That's ~60% of your portfolio as cash.

Given your age (or more acutely, your likely long investment horizon), the decision to keep most of your portfolio as cash is very risky.

Did you have something you'd earmarked to spend the money on (e.g. property)? Rachel Reeves will greatly appreciate the savings interest you will be paying on that £180k.

In total, I have approximately £190k invested in the S&P 500 via IWeb, of which £132k is held within an ISA. The remaining £58k is outside the ISA.

At the moment, I’m holding too much in cash around £230k.
I might consider property investment, but the recent changes are quite discouraging.

dunstonh

• Investments: £190,465 (S&P 500 index fund)  £132,000 in ISA.

Is there a reason you are so heavy in the S&P500?    or is it just down to recency bias?

Clearly the obvious thing to rebalance is the rest of the world.   

kimwp

I'd recommend reading lars kroijer investing demystified. If you are investing in global diversified funds, you are already invested in property, because some of those shares will be in property companies or affected by property prices etc.

london21

Albermarle said:

I have about £106,000 in my pension currently

How is this invested ? 

 but was looking at Twylor Wimpey but looks a bit unstable.

Investing in individual shares is very risky. If you do go down this route you need to do a lot of research and for sure invest in a lot more than just one share. Or make it easy and just stick to global funds etc .

Approximately 85% of my current pension is with my employer’s scheme Aviva Pensions Mixed Investment (40–85% Shares).

My two previous pensions are with:

• L&G PMC 2050–2055 Lifetime Advantage Fund 3
• L&G PMC Multi-Asset 3

You're right I’ll stick with index funds and will likely look into REITs as well.

london21

Voyager2002 said:

Diversify. 

There are many thousands of companies in the world, so why restrict yourself to just 500 of them. And even worse, all of your chosen 500 are in the most highly over-valued market in the history of commerce. And they all fall within the same jurisdiction, so that if (God forbid) a lunatic were to win the election and ruin that country's economy, your entire investment would be at risk.

I was invested in the Vanguard FTSE Global All Cap Index Fund until May 2025.

It might make sense to return to it, although it does have a 60% allocation to the US.