Hi, I started investing last year at the age of 46. I’ve inherited some money and currently have used this years ISA allowance.
I have a pie containing FTWG 50% VUSA 20%, VFEA 10%, VAGS 15% and SGLN 5%. I thought this gives me a good spread of stocks and also some stability given my age and likely time in the market until I want to start accessing it.
Since my ISA is full, I’ve replicated the pie in the general invest account and paying £350 per month to that.
I’ve also started a SIPP, contributing £200 per month. This is in addition to my NhS pension
My question is am I overthink it and making it too complicated? Would just an all world etf be better?
Looks good to me. I would simplify it a touch more by consolidating those three equity ETFs. All VUSA and VFEA really add is duplication as the US and emerging markets are already covered by FTWG.
Thank you, that was the way I was leaning too but good to hear someone else say rather than just the voices in my head!!
You reckon sell up on vfea and vusa and go all in on FTWG, keeping the bonds and gold?
One fund for each asset class is nice is simple. It saves rebalancing and having to grapple with questions like: how much do I want to overweight the US or emerging markets?
I’d say consolidating into FTWG’s probably your best bet.
Other options would include a developed world ETF (ie no emerging markets) like SWLD/HMWO or an S&P tracker such as SPXL. Those options have their upsides but they’re clearly not as diversified geographically.
I’d say the bond and gold ETF are fine if that matches your appetite for risk. I don’t hold either but I’m not really interested in wealth preservation at this stage.