Hi all,
I've created my own portfolio now (mid 40s) that I'm happy with, with advice from here and elsewhere. I'm now trying to advise my parents on theirs. They are 70yrs old, with no income except the UK state pension. They have around £180,000 in a mix of pensions that we are looking to consolidate and invest more effectively for them to spend over roughly the next ten years. The ten years is the time span that they have chosen, so I'm researching to their instructions.
Currently I know their portfolio is far too high risk, but I'm unsure what might be the right balance. They are not risk averse, so I think it will definitely involve some stocks through likely some kind of world ETF - maybe c.25% of the total. I'm not confident though on whether that should be a dividend providing ETF as a priority, or just stick to something like what I have - VWRP Vanguard FTSE All-World (perhaps the Dist version?)
And for the rest, I'm assuming a fair amount of it would be in cash as interest rates are guaranteed and should stay decent for a while yet. I'm less confident on the other options - short term bonds of some kind? I have bond funds which are currently providing a drag to my portfolio, though it's super early days and I'm happy with the diversification that they give me. I'm less sure how useful they are in their situation.
I hope that's all clear, and would massively appreciate any advice. They don't have a lot to live on in retirement, so I would at least like to help them to make the most of it.
I've created my own portfolio now (mid 40s) that I'm happy with, with advice from here and elsewhere. I'm now trying to advise my parents on theirs. They are 70yrs old, with no income except the UK state pension. They have around £180,000 in a mix of pensions that we are looking to consolidate and invest more effectively for them to spend over roughly the next ten years. The ten years is the time span that they have chosen, so I'm researching to their instructions.
Currently I know their portfolio is far too high risk, but I'm unsure what might be the right balance. They are not risk averse, so I think it will definitely involve some stocks through likely some kind of world ETF - maybe c.25% of the total. I'm not confident though on whether that should be a dividend providing ETF as a priority, or just stick to something like what I have - VWRP Vanguard FTSE All-World (perhaps the Dist version?)
And for the rest, I'm assuming a fair amount of it would be in cash as interest rates are guaranteed and should stay decent for a while yet. I'm less confident on the other options - short term bonds of some kind? I have bond funds which are currently providing a drag to my portfolio, though it's super early days and I'm happy with the diversification that they give me. I'm less sure how useful they are in their situation.
I hope that's all clear, and would massively appreciate any advice. They don't have a lot to live on in retirement, so I would at least like to help them to make the most of it.
Statistics: Posted by UKLearning2024 — Sat Nov 23, 2024 3:44 am — Replies 1 — Views 147