A 36-year-old IC reader, who wishes to remain anonymous, wants to retire at age 55 on £40,000 a year. He has been investing for 10 years and has built up a portfolio worth just over £150,000 held in a self-invested personal pension (Sipp) and individual savings account (Isa).
He says: "I have a moderate to high attitude to risk, although the credit crunch has lowered this somewhat. I am now more concerned with managing risk through a diversified portfolio. As a result, I am buying more property and bond funds to diversify what was a fairly high risk portfolio of equity funds.
"I am aiming for a portfolio that is half passive and half active and achieves a balance of asset classes and uncorrelated assets. I want to reduce my overall fees to less than 0.5 per cent, hence the high weighting to index funds."
In addition to the Sipp and Isa, he has a separate 'rainy day' cash savings and a small mortgage on his home. He is able to top up his Sipp with £10,000 a year and the Isa by £5,000 a year.
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