banjocountry wrote:Spet0789 wrote:A few observations.
1) You’re certainly there at FI. Whether you RE is entirely up to you and how you want to spend your time. You certainly don’t need to work.
2) It seems you didn’t put the max £40k into your ISAs. Why not?
3) Why so much cash? Get it into Pensions / ISAs / Pay off mortgage debt.
4) If your BTL value has risen so much, for heaven’s sake sell it! It’s yielding a measly 3.1% and it’s very concentrated. You can earn more in gilts (though that’s not what I would recommend).
More broadly, well done!
2 - I set up a SSAS pension last year and most of my extra funds went in there. I had to cash in part of the ISA's to get the required funds in the pension. I've since topped up the ISA to the max allowed for me and my partner.
With the SSAS I now have a commercial property in a pension wrapper. I know it's yet more property and I know I need to diversify but I seem drawn to it as it's what I know and I can see a regular cash flow. The commercial property is now bringing in £30,000 per annum but I can't access this until I'm 57 as it stays within the pension
Plan now is to top up the ISA's where possible and then pension/trading account. I need to try to balance the porfolio as it's now very heavily in to property.
3 - I had kept the cash in hand to buy another property but I've decided against this as I'm already too much in to property. Need to put this in to an index fund but was holding on as I've just bought £40k with the ISA's recently and another £30k in the pension. That's £70k of index funds in January alone. Thought I'd spread out my purchases just in case this is the "high" and I regret investing all in the same month.
4 - Capital gains tax would be a big hit on these sales. I could sell in small batches (1 or 2 a year) but nothing this tax year as I used up my capital tax allowance on the share options I received from work.
2. Makes sense
4. Understood, but in that case you should subtract your CGT liability from your net worth. Make the investment decision on that basis - should you diversify or not?