Is This a Good Investment Strategy?

chiang_mai

https://forums.moneysavingexpert.com/discussion/comment/81878217#Comment_81878217

Morningstar appears to be most investors go to point of reference. They divide markets into ten regions, which really consolidate into about six regions when EM's are combined. I don't see that dividing an allocation across six regions as getting into the weeds…..US, UK, Europe, Dev Asia, Japan and EM. But if the preference is for a competely hands-off approach, the cheap global tracker is perhaps the way to go, as long as the buyer understands the degree to which different markets are weighted and can live with that for 20+ years.

redpete

If you like a global tracker except for the US weighting, then you could get a "standard" global tracker (including US) and a global tracker ex-US. For example same amount in each will give you the spread over the globe you are happy with and reduces the US weighting by half. Then use EM and small cap at 10% each to get more exposure to them.

Then forget about it.

Definitely worth putting more thought into the pension investments. I was surprised when I found out the proportion of people who just go for the default. The pension is likely to be significantly more than you'll be putting into an ISA and deserves at least as much thought.

Domnhallaich

I started going round in circles with this and just had to stop as I was getting more and more tangled in detail and indecision, which got worse with the more detail I learned.

The Mrs and me have decided we will each chip in £50pm into the FTSE All-World tracker and see how it goes. As I get used to this world, I will look to increase this amount and perhaps dabble in other areas or ETFs. but for now this seems to be the best way to begin as I was at risk of doing nothing at all. I was very much the donkey stuck between to hay bales.

I will definitely look into the pension. Now that this topic isn’t taking up all of my attention, this the next topic I will look into. I also have a SIPP which I need to decide on what to do. I can import it into my workplace pension or, operate that independently. Not sure what is best yet.

Thanks for all the advice and comments. I’m sure I’ll pop up again asking what best to invest in to help diversify from being fully equity based.

LHW99

I will definitely look into the pension. Now that this topic isn’t taking up all of my attention, this the next topic I will look into. I also have a SIPP which I need to decide on what to do. I can import it into my workplace pension or, operate that independently. Not sure what is best yet.

Compare the charges and fund choice on both (assuming the work one is a DC pension).

Then think about whether you could want to draw one before the other, or if you would perhaps put them together with the aim of eventually using all the money to get an annuity.

chiang_mai

https://forums.moneysavingexpert.com/discussion/comment/81879045#Comment_81879045

I do feel for you, a sence of being overwhelmed is apparent. I think you made the right decision, under the circumstances. If your starting point was not knowing anything about the subject, and we've all been there at one time or another, at least you got the ball rolling in the lowest risk way available to you, on a small scale. You're to be commded for that because the alternative was to do nothing. I'm pretty sure that first step will cause you to learn more about investing and lead to other small steps. I can't speak for others but it took me a couple of years of getting things wrong, sometimes in not a small way, before I reached a point where I began to understand enough to make progress and feel comfortable. All the best.

redpete

https://forums.moneysavingexpert.com/discussion/comment/81879436#Comment_81879436

A good point, it does us all good to reflect on our level of confidence (and competence) when we started our investment journey.

Xenon

To me investing is about…

Invest what you can afford

Keep it simple

Leave it alone