tag:blogger.com,1999:blog-6533494677366906459.post1233602004801156398..comments2023-05-14T13:16:00.415+01:00Comments on DIY Income Investor : Balancing Asset ClassesSisyphushttp://www.blogger.com/profile/11345967558482194349noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6533494677366906459.post-62616909506969424412011-12-13T08:48:51.881+00:002011-12-13T08:48:51.881+00:00@Yabusame
That's an interesting way to present...@<a href="#c8341944655149625516" rel="nofollow">Yabusame</a><br />That's an interesting way to present it and it clearly is a cautious way to proceed (of course you will have paid off debts). I would adjust your description as follows:<br />1) Cash ISA only has a role if you are building up your portfolio and don't have enough to buy a Stocks & Shares ISA<br />2) Once you have your 12-month cash/savings safety net, yes, experiment with the stock market via ETFs but this is only to help you find your feet. Once you think you know what is going on, move up the Income Pyramid to dividend shares, gilts and corporate bonds. <br /><br />Good LuckSisyphushttps://www.blogger.com/profile/11345967558482194349noreply@blogger.comtag:blogger.com,1999:blog-6533494677366906459.post-83419446551496255162011-12-12T22:35:23.383+00:002011-12-12T22:35:23.383+00:00Ok, I just want to reiterate what you've alrea...Ok, I just want to reiterate what you've already said to see if I've got it right, if not please jump in and correct me. Here is how I see you spreading your wealth across different asset classes:<br /><br />1. CURRENT ACCOUNT - up to 2 months expenses (2 months total wealth as measured against expenditure)<br />2. SAVINGS ACCOUNT - up to 6 months expenses (8 months total wealth)<br />3. FIXED INTEREST CASH BOND/CASH ISA - an additional 6 months of expenses (14 months total wealth)<br />4. EXCHANGE TRADED FUNDS (SHARES ISA) - 14 months expenses (28 months total wealth)<br />5. GILTS, HYP SHARES, & CORPORATE BONDS (SHARES ISA) - all additional wealth (29+ months total wealth)<br /><br />If we take a simplistic view and suggest that our monthly expenses equal £1,000 then we need at least £14,000 in cash spread across current, savings, and Cash ISA accounts before we start investing in ETFs and so forth.Yabusamehttps://www.blogger.com/profile/17530007541567908178noreply@blogger.com