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Can a 60/40 portfolio meet our long-term investment objectives?

These investors' Isa might be too cautious to meet their goals
Can a 60/40 portfolio meet our long-term investment objectives?
  • These investors want to start a family and buy a home in the next 12 months, and to have an income of £35,000 a year when they retire in 2045
  • Their investment Isa is 60 per cent in equities and 40 per cent in bonds, but this might be too cautious for a long-term investment horizon
Reader Portfolio
Jeremy and his wife 35 and 32
Description

Workplace pensions; Isa invested in funds, gold and silver; trading account invested in direct equity holdings, cryptocurrencies, cash.

Objectives

Start a family and buy a house next year, income of £35,000 a year from 2045, total return of 6-7% a year, invest cash

Portfolio type
Investing for goals

Jeremy and his wife are 35 and 32, respectively, and earn about £100,000 a year between them. “We plan to start a family and buy a house in the next 12 months,” says Jeremy. “We would also like to have enough assets to give us an income of £35,000 a year from age 60 in 2045. We have set aside funds for a house deposit worth about £45,000.

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