Following my recent post on asset allocation ideas, I’ve decided how I am going to invest over the next several years.
Our retirement savings will be split across 3 main pots – 2 ISA accounts and 1 SIPP. The plan is that short of other available income at the time, the ISA accounts will help fund the period of age 50-55. I won’t be able to get my hands on the SIPP funds until at least age 55 (and possibly 57, depending on what date in 2028 the government decides to raise it).
I’ve decided to keep things simple to avoid unnecessary costs and rebalancing effort:
SIPP (IWeb) – 60/40 ratio
- 100% Vanguard LifeStrategy 60% Equity Fund – Accumulation
ISA1 (IWeb) – 100% equities
- 100% Vanguard LifeStrategy 100% Equity Fund – Accumulation
ISA2 (Vanguard) – 100% equities
- 10% Vanguard FTSE U.K. All Share Index Unit Trust – Accumulation
- 10% Vanguard Emerging Markets Stock Index Fund – Accumulation
- 80% Vanguard FTSE Developed World ex-U.K. Equity Index Fund – Accumulation
The SIPP is the most important to us long-term, because it has the most in it and will be responsible for our long term income. That is why I have stuck to a 60/40 profile for that one. I feel I can be a little more risk tolerant in the 2 ISAs in the hope of greater gains.