#420092
Postby Joe45 » June 17th, 2021, 8:37 am
I have simplified as far as I am sensibly able. There is plenty of evidence to show that cognitive ability declines with age, so simplicity will become increasingly important.
I'm also conscious that Mrs 45 has virtually no interest in investing and would struggle in the event of my demise. The thought of her running to St James Place or some other sharks fills me with horror, and I have left instructions to my executors to steer clear of these types.
Accordingly, I and Mrs 45 each have a SIPP, an ISA and a general trading account. In each account there is a global equity tracker and a global bond tracker. This gives me maximum diversification and ultra low cost. I'm 59 and our overall equity to bond allocation is 70:30. We hold through 2 low-cost platforms.
Tax planning does require some refinements to this allocation: Bonds are overweight in my SIPP to reduce the risk of exceeding the LTA. Year-end bed & breakfast requires equity trackers to be a mix of HSBC and Fidelity. Part of the bond allocation sits in Premium Bonds (effectively a cash savings account).
This portfolio is now virtually maintenance-free. Annual rebalancing (including B&B) is about all that's required.