Hi all,
I’ve really appreciated reading all the collective wisdom in this forum, so now I come here looking for help and feedback regarding my plan![:)]( "Smile")
Age: 31, married, no children
Resident: UK
Desired Retirement Country: We’re considering moving to Switzerland, and I’m originally from Southern Europe. I would say 50% chance Switzerland or 50% a Eurozone country. If Switzerland doesn’t pan out, almost certainly a Eurozone country.
Desired Asset Allocation: 80% stocks / 20% bonds (pretty boring, happy with 2 fund portfolio if possible)
Marginal Tax Rate: 40% (I salary sacrifice everything to stay below £100k, but that means limited capacity for non-tax efficient investments as it would push me across the threshold)
Debt: No
Assets:
~€130k saved up for a house deposit (50% in CDs @ 3.60% AER, 50% liquid cash). We’re not sure where we want to settle / buy and Switzerland has crazy high prices and requires 20% deposit in cash, so I’m saving with that idea in mind. I should probably try to exchange some of these in CHF to hedge currency risk.
~£10k in ISA (80:20 SSAC / EUNA)
Current retirement assets:
~£170k in 2 work pensions (£70k and £100k respectively)
Stocks:
(I dislike having so many funds, but the only passive global equity tracker they offer is 1/3rd currency £-hedged and ~17% in small caps - I just want to replicate VWRL / SSAC)
- UK: 3.56% (UK Equity Tracker - TER 0.08%)
- Pacific Rim: 4.60% (Pacific Rim Equity Index Fund - TER 0.08%)
- Japan: 4.96% (Japan Equity Tracker - TER 0.08%)
- Emerging Markets: 10.36% (Emerging Markets Equity Fund - TER 0.22%)
- Europe (ex UK): 11.20% (Continental Europe Equity Tracker - TER 0.09%)
- US: 45.32% (US Equity Tracker - TER 0.09%)
Bonds:
Gilt: 20% (iShares Over 15 Years Gilt Index - TER 0.07%)
Alternative options are:
- MSIM Global Credit Fund (Active / Corporate Bonds - TER 0.27%)
- Western Multi Asset Credit Fund (Active - TER 0.61%)
Questions:
I am not very comfortable with my work pension providing only gilts as it exposes me to currency risk if I retire in a non-£ country. The fund also has an incredibly high duration, I would prefer something more medium like 8-10.
I’ve really appreciated reading all the collective wisdom in this forum, so now I come here looking for help and feedback regarding my plan
Age: 31, married, no children
Resident: UK
Desired Retirement Country: We’re considering moving to Switzerland, and I’m originally from Southern Europe. I would say 50% chance Switzerland or 50% a Eurozone country. If Switzerland doesn’t pan out, almost certainly a Eurozone country.
Desired Asset Allocation: 80% stocks / 20% bonds (pretty boring, happy with 2 fund portfolio if possible)
Marginal Tax Rate: 40% (I salary sacrifice everything to stay below £100k, but that means limited capacity for non-tax efficient investments as it would push me across the threshold)
Debt: No
Assets:
~€130k saved up for a house deposit (50% in CDs @ 3.60% AER, 50% liquid cash). We’re not sure where we want to settle / buy and Switzerland has crazy high prices and requires 20% deposit in cash, so I’m saving with that idea in mind. I should probably try to exchange some of these in CHF to hedge currency risk.
~£10k in ISA (80:20 SSAC / EUNA)
Current retirement assets:
~£170k in 2 work pensions (£70k and £100k respectively)
Stocks:
(I dislike having so many funds, but the only passive global equity tracker they offer is 1/3rd currency £-hedged and ~17% in small caps - I just want to replicate VWRL / SSAC)
- UK: 3.56% (UK Equity Tracker - TER 0.08%)
- Pacific Rim: 4.60% (Pacific Rim Equity Index Fund - TER 0.08%)
- Japan: 4.96% (Japan Equity Tracker - TER 0.08%)
- Emerging Markets: 10.36% (Emerging Markets Equity Fund - TER 0.22%)
- Europe (ex UK): 11.20% (Continental Europe Equity Tracker - TER 0.09%)
- US: 45.32% (US Equity Tracker - TER 0.09%)
Bonds:
Gilt: 20% (iShares Over 15 Years Gilt Index - TER 0.07%)
Alternative options are:
- MSIM Global Credit Fund (Active / Corporate Bonds - TER 0.27%)
- Western Multi Asset Credit Fund (Active - TER 0.61%)
Questions:
I am not very comfortable with my work pension providing only gilts as it exposes me to currency risk if I retire in a non-£ country. The fund also has an incredibly high duration, I would prefer something more medium like 8-10.
- Does it make sense to move some part of the money (since the equity TER is competitive) into a SIPP and buy say 50% Global Bond (CHF-hedged) and 50% Global Bond (EUR-hedged) for the fixed income part of my portfolio? Most SIPP providers would eat me up in FX fees. The best I found is Interactive Investors (1.5-1% FX fee), but they allow multi-currency so I would only feel the sting once.
- I can only partial transfer min £25k at the time (and £50k must remain invested) per pension, so for now the maximum I can partially transfer out is £50k. That would be enough to satisfy my 80:20 allocation, but I’m concerned about investment value dropping and being stuck unable to rebalance due to partial transfer limits. Am I over-estimating this risk?
- Any other feedback or advice regarding what you would do different in my position?
Statistics: Posted by CharSiuBao — Sat Jan 20, 2024 2:34 pm — Replies 0 — Views 89