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Make your portfolio less fragile and more resilient to uncertainty

Our reader should hold appropriate insurance and better diversify his portfolio
Make your portfolio less fragile and more resilient to uncertainty

David is age 45 and earns around £100,000 a year. His wife works part-time in the public sector and does some freelance work. They have two pre-school-age children. Their home is worth about £950,000 and has a mortgage of £350,000 on it. They also own a buy-to-let property worth about £175,000 with a mortgage of £108,000. They let it for £750 a month and in the last tax year it made them an income after expenses of £3,000.

Reader Portfolio
David 45
Description

Sipp and Isa invested in funds and shares, workplace pension, shares in employer, residential property, cash.

Objectives

Grow investments to provide £40,000 a year in retirement, pay off mortgage, retire at 60, help children buy homes, total return of 7 per cent a year or inflation plus 5 per cent.

Portfolio type
Investing for growth

“My primary objective is to grow my investments to a large enough value to provide a comfortable retirement,” says David. “I think I will need an income of £40,000 a year on top of our state pensions to achieve this. I would like to be in a position to retire at 60, if possible. We have 18 years remaining on our mortgage and I would like to pay this off before I retire.

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