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Don't invest too much with one manager

Investing a substantial chunk of your investments in just one fund is risky
Don't invest too much with one manager

Adam is age 44 and earns £95,000 a year. His wife does not have a job at the moment because they have pre-school-age children. They also have two businesses, one of which generates income of about £12,000 a year, which is reinvested into it. Their home is worth around £1m and has a £300,000 mortgage.

Reader Portfolio
Adam 44
Description

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

Objectives

Retire by 60, £40,000 per year income in retirement, 7% per year investment growth, investments worth £1m by age 65.

Portfolio type
Investing for growth

“I’d like to retire at around age 60 or, ideally, at 55, so I could give up the rat race and do something different,” says Adam. “I think that my wife and I will need about £40,000 a year to live off in retirement. By then, our business should incur fewer costs, so we could maybe earn £5,000 a year from that. So we will need our pensions and investments to generate about £35,000 a year.

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