Hi All,
I'd like to canvas for opinions please.
My wife and I own our home outright with no mortgage.
I have an investment property which I am on the cusp of selling which will give me 300k cash by July.
My current investments are as follows:
1) 95.000 in tax sheltered stocks and shares accounts.
2) 40,000 in a low interest government bond (tax free)
3) 200,000 in a defined benefit public sector pension scheme - cannot start drawing pension until 55 years old - current estimated income from age 60 = 9.000/year
4) 280,000 equity in a flat in London which is being sold by July.
I don't think I need any bonds as my pension is kind of like an ultra safe bond.
I don't mind passive index trackers but my investment style is mostly high yield blue chips, reinvesting dividends, holding forever.
I also like to punt on emerging markets or other sectors when they are down by > 30% from recent peaks and selling if they turnaround a quick profit.
So a mixture of boring and a little bit of excitement.
I'm 36 and will probably be FI by 40. I might already be FI, not sure but doesn't matter too much because I have a great job.
Anyway, I could now buy a couple of rental properties with no mortgage as I live in a much lower cost area than the one where my flat which is being sold is.
Yield on property in the UK is not that good unless you want to rent to high hassle tenants, which I don't.
I don't want to be holding significant amounts of cash for any longer than 6 months until I decide where to invest.
So:
1) All into equities
2) A bit into bonds even though I have a good safe pension?
3) 50:50 split buying one high end rental property and investing the rest in equities?
4) Re-invest the entire amount into a mortgage free, ultra up market property and rent it out. Lower yield but should be better tennats.