Saturday, 31 January 2015

January 2015 Update

January's update is here

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
Summary Jan 2015
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.)


  1. Hi Cerridwen,

    I like how you've made you're goals nice and clear. You've set the markers, now you just have to go out and get them. Setting them is sometimes the most overlooked part. So well done on that front.

    One month down and it looks like you're heading in the right direction. Keep up the good work!

    All the best

    1. Thanks Huw, it feels like I'm on the final stretch now so every step counts.

  2. Great stuff on setting numbers that you want to achieve in 2 years. That will keep you motivated and continue to add money in your accounts. Keep up the good work.

    1. Thanks Tawcan, it does feel good to know the size of the task and to be able to see little chunks being knocked off each month.

  3. If you're looking to get a lot from your SIPP, do you think you might want to swap the all-world equity tracker for something a bit more targeted, and higher yielding/higher growth? Just thinking, as you have your pension coming later, which will be a solid and reliable source of income, but in the in between years, you need to ramp it up a bit. I have put a fair bit into small-caps and mid-caps to hopefully grow things a bit more.


    1. Thanks TV, I'm really not sure what tack to take with my SIPP. To be honest I was thinking that the all world tracker might be a bit on the risky side considering that I need the funds to be there in 2 years' time and there is a lot of talk about equities being due for a correction. But then again most of my private pension is invested in my CIS FSAVC which is very low risk - only about an 8 score on the Trustnet Risk monitor so that bit's fairly secure.

      Maybe I should try to beef it up with small caps - after all I won't need it all in year one so there would be time for a recovery if necessary.

      Thanks again, I'll have a think.

  4. Hi Cerridwen, great to see some actual numbers that you will be aiming for and within a very specific time allowance. You are so close to your ISA target, that should be achieved fairly comfortably and quickly this year, leaving you to concentrate on the SIPP the rest of the two years?

    I'm sure in one of your spreadsheets, you've worked out your expenses and your savings rate, which I think you mentioned that you're going to try to increase. Perhaps some short term 'sacrifices' over the next two years may need to be considered as you aim towards your goals?

    1. Hi weenie,

      Yes you're quite right - saving/investing more and spending less over the next two years is definitely the best way to secure my retirement date. I have control over that side of things, unlike over whether or not the markets will be kind to me. To my shame I only have a vague idea of my savings rate, but I am making an effort to track our spending more closely rather than just accept it as is. As I've mentioned before the credit card spending is our biggest "black hole" so I'm concentrating on that at the moment.