My ISS, inspired by FirevLondon, Weenie, the Bogleheads et al, is set out below. This is a work in progress.
Part 1- Investment Philosophy
- Tenet 1: Diversification across world markets, and through multiple asset classes, held with multiple companies
- Tenet 2: Predominantly passive focus to portfolio
- Tenet 3: Reduce fees and maximise tax efficiency through use of ISAs and tax-free savings accounts
- Tenet 4: Hold and grow investments through re-accumulation and compound investing in simpler financial products
- Tenet 5: Monitor mix of investments against target allocation quarterly, investing to rebalance
Part 2 – Goals
- Save £1000/month (2020)
- Be worth £100k (2022)
- Start overpaying mortgage (2023)
- Have £100k in equity (2023)
- Be in a position to retire in 20 years (2038)
Part 3 – Allocations
Investments are 100% equity, consisting 80% passive, with ex-UK world allocation. 20% active satellite in any old muck.
Part 4 – Accounts, Funds, Taxes & Rebalancing
- Rebalance quarterly through purchases using Swedroe’s 5/25 rule
- Split holdings across multiple providers and platforms to reduce risk
- Exploit tax-free allowances where possible
