Investment Strategy Statement

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

  • Have an emergency fund of three months income (2019)
  • Save £1000/month (2020)
  • Be worth £100k (2022)
  • Have £100k in equity (2023)
  • Be in a position to retire in 15 years (2033)

Part 3 – Allocations

Allocation will initially be set at 70% equities, 15% cash, 10% alternative or exotic assets, 5% property. Equities will counterbalance domestic cash and property holdings by being 40% US, 35% Emerging Markets, 15% Developed Ex-US/ Ex-Euro and 10% Euro.

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