Tidying up my retirement portfolio...

[Amaryllis]

More food for thought - thank you so much!!

[DrFfybes]

One more question: would you suggest putting everything with AJ Bell, or should I spread it amongst two or three brokers?

There is at least one thread on this - as the client accounts are ringfenced from the platform funding the only theoretical risk is losing access to your finances should the platform go bust.

AJ Bell are a listed company (like HL) whereas many others are owned by larger financial institutions (II owned by Aberdeen, Lloyds/Halifax are another major player).

We have most of our stuff with II, SIPPs (which we don't intend to touch) with HL as they are still small so the percentage fee is not much. With a large portfolio like yours you should really only look at fixed fee platforms. There's a moneyvator comparisson tool here
https://monevator.com/compare-uk-cheape ... e-brokers/

Paul

[James]

I've mentioned it here before, but the advice from Warren Buffett to his wife in the event of his death is to stick her inheritance into a global tracker.
Once one starts to go a bit doolally as age encroaches, or if one needs to pass it on to a spouse/family member without the same hobby interest in investing that we have here, the set-and-forget approach seems to make the most sense.

I think Warren said a 90% S&P tracker and 10% short dated government bonds.

Quite possibly but the sentiment remains the same. Personally, I plan to go with sticking the lot into a Vanguard x/x fund, which requires no intervention on behalf of me or my widow.

[Amaryllis]

Sorry but what is a Vanguard x/x fund?

[y0rkiebar]

Sorry but what is a Vanguard x/x fund?

I would guess it's a Vanguard LifeStrategy ee/bb fund where ee% is in equities and bb% is in bonds. e.g LifeStrategy 60/40 https://www.vanguardinvestor.co.uk/inve ... s/overview

[Itsallaguess]

Sorry but what is a Vanguard x/x fund?

I think James is referring to the Vanguard LifeStrategy funds, which offer a cheap 'one stop shop' for a single fund offering an in-built equity/bond mix, depending on your particular requirements.

There are Vanguard LifeStrategy funds available with 20%, 40%, 60%, 80%, and 100% equity allocations, with a corresponding 80%, 60%, 40%, 20%, and 0% bond allocation, and you can read further using the following link -

Why choose our Vanguard LifeStrategy funds - https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

I'm an income-investor primarily, but a few years ago I started to drip-feed some long-term capital into Vanguards LifeStrategy 80%/20% (equity/bond) fund partly as a diversifying exercise, and partly as a toe-in-the-water purchase to test out a potential later-life approach, and also, importantly to me, as a clear 'flag-in-the-ground' exercise so that I can potentially leave instructions for surviving relatives as to where they should be happy to park lumps of capital if anything were to happen to me.

It's worth noting that there are accumulation and distribution versions of these funds, and I think it's also worth noting that whilst the above Vanguard link offers an option to open an account with them to allow a potential purchase, they can also be bought and sold as normal within standard online investment accounts with other brokers, which is how I hold mine.

Since my initial purchase and subsequent top-ups, I've been happy to see that the 80%/20% LifeStrategy fund is suitable to tick all of the above boxes for me, and as you seem not to be aware of these particular low-cost, 'single-shot' options, then I'd certainly recommend allowing them to be looked into regarding perhaps playing a part in the type of portfolio-refinement processes you're looking to carry out here...

Cheers,

Itsallaguess

[James]

Sorry but what is a Vanguard x/x fund?

I think James is referring to the Vanguard LifeStrategy funds, which offer a cheap 'one stop shop' for a single fund offering an in-built equity/bond mix, depending on your particular requirements.

There are Vanguard LifeStrategy funds available with 20%, 40%, 60%, 80%, and 100% equity allocations, with a corresponding 80%, 60%, 40%, 20%, and 0% bond allocation, and you can read further using the following link -

Why choose our Vanguard LifeStrategy funds - https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

I'm an income-investor primarily, but a few years ago I started to drip-feed some long-term capital into Vanguards LifeStrategy 80%/20% (equity/bond) fund partly as a diversifying exercise, and partly as a toe-in-the-water purchase to test out a potential later-life approach, and also, importantly to me, as a clear 'flag-in-the-ground' exercise so that I can potentially leave instructions for surviving relatives as to where they should be happy to park lumps of capital if anything were to happen to me.

It's worth noting that there are accumulation and distribution versions of these funds, and I think it's also worth noting that whilst the above Vanguard link offers an option to open an account with them to allow a potential purchase, they can also be bought and sold as normal within standard online investment accounts with other brokers, which is how I hold mine.

Since my initial purchase and subsequent top-ups, I've been happy to see that the 80%/20% LifeStrategy fund is suitable to tick all of the above boxes for me, and as you seem not to be aware of these particular low-cost, 'single-shot' options, then I'd certainly recommend allowing them to be looked into regarding perhaps playing a part in the type of portfolio-refinement processes you're looking to carry out here...

Cheers,

Itsallaguess

Yes, sorry, I should have been more specific. These funds are what I was referring to. I have the 80/20 among my investments now, but left it as x/x as I'll probably lower the equity bit slightly later in my dotage and my better half can take the distributions without having to think about it.

[Dicky99]

Sorry but what is a Vanguard x/x fund?

I think James is referring to the Vanguard LifeStrategy funds, which offer a cheap 'one stop shop' for a single fund offering an in-built equity/bond mix, depending on your particular requirements.

There are Vanguard LifeStrategy funds available with 20%, 40%, 60%, 80%, and 100% equity allocations, with a corresponding 80%, 60%, 40%, 20%, and 0% bond allocation, and you can read further using the following link -

Why choose our Vanguard LifeStrategy funds - https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

I'm an income-investor primarily, but a few years ago I started to drip-feed some long-term capital into Vanguards LifeStrategy 80%/20% (equity/bond) fund partly as a diversifying exercise, and partly as a toe-in-the-water purchase to test out a potential later-life approach, and also, importantly to me, as a clear 'flag-in-the-ground' exercise so that I can potentially leave instructions for surviving relatives as to where they should be happy to park lumps of capital if anything were to happen to me.

It's worth noting that there are accumulation and distribution versions of these funds, and I think it's also worth noting that whilst the above Vanguard link offers an option to open an account with them to allow a potential purchase, they can also be bought and sold as normal within standard online investment accounts with other brokers, which is how I hold mine.

Since my initial purchase and subsequent top-ups, I've been happy to see that the 80%/20% LifeStrategy fund is suitable to tick all of the above boxes for me, and as you seem not to be aware of these particular low-cost, 'single-shot' options, then I'd certainly recommend allowing them to be looked into regarding perhaps playing a part in the type of portfolio-refinement processes you're looking to carry out here...

Cheers,

Itsallaguess

My dad passed away 6 years ago leaving mum with a real hotpotch of equity funds, bond funds and stocks.
I sold the lot and split the money 50/50 between the Lifestrategy 60/40 fund and the similar HSBC Global Strategy Balanced fund.
I'd say it's served its purpose quite well, growing averagely well during the first 4 years and not being quite so badly hammered during the last 2 challenging years.
It's exactly how I explained to her at the time. "Don't expect to shoot the lights out when the markets doing well but you won't lose sleep when it's not".

[Amaryllis]

Ah thanks! I already have some Vanguard Life Strategy fund…… I think it’s the 60:40 one. And was thinking of adding some of my stash to it.

I’m planning to go over all this information tomorrow. Right now my head is spinning ever so slightly - but I’m really grateful to you all

[JohnB]

One broker for pensions, one for ISAs, split the non-sheltered between them. Chances of losing the money in ring-fenced accounts are minimal, the risk is that you get locked out of the account for a year if the broker collapses.

Global tracker ETFs, 'cos its simple, again from at least 2 providers for lockout reasons.

So 4-6 ETFs.

Spend your time researching tax law, not stock markets.

[Dod101]

That sounds very sensible - thank you so much!

I clearly have a lot of homework to do…

One more question: would you suggest putting everything with AJ Bell, or should I spread it amongst two or three brokers?

I would and indeed do use two brokers just so that you are not putting all your eggs in one basket.

Dod

[Wuffle]

On the subject of multiple brokers....

Having 2 messy accounts means it is tempting to tinkers with both of them and get yourself in a right psychological mess.
Consider having one big lump of a plain vanilla, let's say vanguard 60/40 in one account.......and then the other one.
It's only really an access issue after all.

I have ended up here by accident, chosing HL for ISA and SIPP years ago, but getting auto enrolled with NEST through work and I find I am totally content with the NEST product but swing about all over with respect to how I arrange the HL accounts.

W.

[Amaryllis]

Thank you all, again, for taking the time to look at my case, and all the many useful suggestions. Just as a reminder, my current portfolio is spread across approximately 25 funds. Main holdings include UK and US index funds, Vanguard Life Strategy, Managed Europe funds (Baring, Janus Henderson, JP Morgan), Vanguard FTSE All World and Utmost Multi-Asset Cautious - spread across different markets/sectors as follows:

UK 28% - USA 35% - Europe 12% - Asia, Japan, China, India 8% - Global + emerging markets 15% - Healthcare + Biotechnology 2%

I haven't had as much time to do my homework as I'd hoped, but this is where I am tentatively at (new % of portfolio shown in brackets):

Keep the Vanguard US funds - mostly S&P tracker (28%)
Sell more than half of my UK funds (keep 10% - FTSE tracker, mid-cap + smaller companies)
Sell Utmost funds and buy more Vanguard 60:40 Life Strategy instead (23%)
Sell the various itsy-bitsy funds - mostly various European, Asian and emerging markets funds
And buy more HSBC FTSE All-World (9%)
As well as more Finsbury Growth & Income, Foreign & Colonial and JP Morgan Global Growth & Income ITs (9% each - total 27%)
And, for a bit of spice, keep my little Worldwide Healthcare + International Biotechnology holdings (3%); might even perhaps add to these... 

This would still be 13 different funds, but I hope somewhat more coherent: Global 36%, Vanguard Life Strategy 23%, UK 10%, US 28%. Or is there too much Global and not enough Life Strategy? Is there enough exposure to Europe?

Also, I am not sure about Mercantile....... keep or ditch - and possibly replace with Alliance? Also, I note that JMP Morgan Global Growth & Income is currently trading at a premium (1.8%), whereas the other ITs show discounts of 5-9%. I also came across Murray International, which seems to have done quite well. (Was he not a regular poster at the Motley Fool?)

I still have to look into putting more into SIPPs, with a view to setting up my adult children as beneficiaries. How easy is that - how do I go about doing this? Sorry about such a basic question, but my two SIPPs were funded while I was still working.

Thank you for your insights and patience!!

[genou]

I haven't had as much time to do my homework as I'd hoped, but this is where I am tentatively at....

To go full Yorkshire, it is still a ragbag. Get yourself a portfolio at the Financial Times ( start with https://markets.ft.com/data/etfs/tearsh ... VE:LSE:GBP ) and then click on comparisons and add in the tickers for your choices and see how they do over long periods against it.

We have ~90% in global trackers, 5% in PE ( my thinking was that this is not captured by the trackers ), and 4% in Emerging Markets ( this should by rights be 10% but it keeps underperforming, and I have not rebalanced ). Even the PE is on the block, as mostly it is not performing enough to justify my watching it.

The rounding is in fun stuff - e.g. Artisanal Spirits , aka the Scottish Malt Whisky Society, or Ripple Energy, which come with perks, or a few historic Fixed Income holdings which are being left to maturity.

The reason the trackers is plural is originally that we could teem and lade from one to another and use CGT allowances. More recently it is that we have moved money into ESG flavoured trackers, but that is another story.

I still have to look into putting more into SIPPs, with a view to setting up my adult children as beneficiaries. How easy is that - how do I go about doing this? Sorry about such a basic question, but my two SIPPs were funded while I was still working.

Thank you for your insights and patience!!

You can't set up a SIPP for an adult child, and I'd be very surprised if any broker will allow you to contribute directly to one created by any of your children. The best you can do is give them money to put into the SIPP for themselves, subject to their own contribution limits.

[Amaryllis]

"You can't set up a SIPP for an adult child, and I'd be very surprised if any broker will allow you to contribute directly to one created by any of your children. The best you can do is give them money to put into the SIPP for themselves, subject to their own contribution limits."

Sorry, that's not what I meant. I meant get more SIPPs for myself, but naming my children as beneficiaries in the event of my death. I thought that is what another poster - DrFlybes - suggested up-thread:

"You can start by opening SIPPs and naming your children as beneficiaries, that would shelter £2880 a year under current rules."

[TUK020]

Given the value of your assets, the simplest way to achive you objective is to start giving it away now. You have £1k/month spare, why do YOU need to invest it to grow when you'll probably end up taxed on any increase. Do you have grandchildren, can you open JISAs or JSIPPs for them? If the £1k/month really is surplus to requirements than there are no tax implications of gifting it regularly. We're in a not dissimilar situation to you, large asset base, good pensions topped up with circa 1% from our investments, and slightly younger than you but with no children we've already set up monthly payments to the great nieces and nephews.

Paul

I would reinforce this point.

I have been saving in S&S ISAs & LISAs for each of my kids (started as JISAs) on a regular basis. As they turn adult, you have to have a standing order into their acount, and then a back to back S.O. from their account into the ISA.

Each of the kids then has a tidy sum that they control, and they get to determine when and how to use: House deposit, blow it on a wedding, start a business etc. But they only get to use it once.

The key thing is that they get it soon enough to do something important when they need it, and not wait until parents die

[genou]

"You can't set up a SIPP for an adult child, and I'd be very surprised if any broker will allow you to contribute directly to one created by any of your children. The best you can do is give them money to put into the SIPP for themselves, subject to their own contribution limits."

Sorry, that's not what I meant. I meant get more SIPPs for myself, but naming my children as beneficiaries in the event of my death. I thought that is what another poster - DrFlybes - suggested up-thread:

"You can start by opening SIPPs and naming your children as beneficiaries, that would shelter £2880 a year under current rules."

Sorry, long thread, and I'm too idle to read back - if 3600 ( being 2880 grossed up ) p.a. amongst all the children is what you are willing to gift, fine. If you have more appetite, you need to look at other options.

Just seen tuk020 has been before me

[Amaryllis]

A very large part of my portfolio is already in 2 SIPPs, with my children named as beneficiaries. If I understand correctly, I can still make small additions (£2880 a year?) even though I'm retired.

As for gifting cash for them to invest in ISAs, unfortunately this isn't possible as they currently live abroad.

I would welcome more comments about my ideas about rebalancing my portfolio. I thought I had taken posters' suggestions on board, so I'm not sure why it might be considered a ragbag?

[Arborbridge]

That sounds very sensible - thank you so much!

I clearly have a lot of homework to do…

One more question: would you suggest putting everything with AJ Bell, or should I spread it amongst two or three brokers?

I have mine spread between four brokers, but three should be enough. It's not so much that brokers will go bust and you will lose your money (that would be extremely unlikely) but it's more that if a broker goes to the wall it will take months to sort out the aftermath, during which time you may not have access to your funds.

Arb.

[DrFfybes]

As for gifting cash for them to invest in ISAs, unfortunately this isn't possible as they currently live abroad.

Doesn't stop you giving them the money - what they do with it is their choice