The format for my portfolio updates last year was clunky and messy so I've tried to simplify things but retain the information. This year is pretty key in my plans as it will be the last chance I have to boost our ISAs and my SIPP before my husband retires and we're living on a much reduced budget.
I've gone a fair way towards balancing my ISA according to my asset allocation strategy, but I have yet to tackle my husbands which is still very top heavy in the two CIS funds. My aim for the ISAs is to provide £2000 - £3000 pa income during the years before my LGPS becomes payable (hopefully starting in 2 years time when I would like to retire). I know that I am not "sticking to the rules" by having a fairly aggressive growth strategy when we may want to draw an income so soon, but we both have DB pensions that will be adequate when they are in payment so I am not intending to draw on the ISA capital until (and unless) we need to do so to pay for care costs in the future. A short term/long term/terminal (god forbid!) drop in capital wouldn't overly affect our ongoing standard of living.
- To achieve my target I'm aiming for at least £70,000 in the combined funds by March 2017.
My SIPP needs to provide us with an average income of £7,060 pa (tax free) between March 2017 and March 2024 when I will be able to access my LGPS pension. Because this income is key to maintaining our standard of living throughout these years I am aware that I need to concentrate on hanging onto capital. The SIPP should therefore be invested quite differently from the ISAs. I'm not sure that I've got this quite right just yet (especially given the fact that I have an All World Equity Tracker in there :-)). This is a work in progress, (Any comments very welcome).
- To achieve my target I'm aiming for at least £50,000 in this pot by March 2017
Total Funds Outstanding £25,520.34
(p.s I'm very interested in the progress of the portfolios of my fellow bloggers so this year I will be adding links to any updates as I come across them. If anyone would like theirs including please add a comment, likewise if I've tracked you but you would prefer not to be included.)