UK Permanent Portfolio - please advise!
Posted: Mon May 01, 2017 8:55 pm
Hi everyone,
I am looking at setting up a UK permanent portfolio after reading Harry Browne and Craig's books (as well as listening to Jake's podcasts and reading as much as I can about this online). Before going any further I was really hoping for some advice from the forum.
My situation is as follows:
I have some inheritance money which is currently sitting as cash in the bank in a taxable account, and some personal savings which are held in a tax free cash ISA. The inheritance money is substantially more than the personal savings.
I plan to move all of this into two separate permanent portfolios; one using the inheritance money consisting of taxable investments (Non ISA portfolio), and one using the personal savings consisting of tax free investments (ISA portfolio).
Non ISA portfolio
25% Equities: Vanguard FTSE UK All Share Index Unit Trust – Income GBP
Fund held directly with Vanguard (no broker)
25% Bonds: TR60 – United Kingdom 4% Treasury Gilt 22/01/60 GB00B54QLM75
Buy on secondary market through broker (iweb?)
25% Gold: The Royal Mint Gold Bullion Allocated Storage
Direct buy and storage at the mint
25% Cash: UK Government Gilts short term bond ladder
Buy on secondary market through broker (iweb?)
ISA portfolio
25% Equities: iShares Core FTSE 100 UCITS ETF
Broker iweb
25% Bonds: TR60 – United Kingdom 4% Treasury Gilt 22/01/60 GB00B54QLM75
Buy on secondary market through broker (iweb?)
25% Gold: Zurcher Kantonalbank Gold ETF ZGLD OR ETF Securities Exchange Traded Gold PHGP
Broker iweb
25% Cash: Cash ISA
Held with commercial bank
Every year I intend to max out my yearly ISA limit (£20k) and buy more tax free investments – adding to the 'ISA portfolio'. Any additional money over the 20k limit will be added to the taxable investments held outside the ISA – adding to the 'Non ISA portfolio'.
The sum of both portfolios will be added together to obtain the combined asset allocation percentages. These combined percentages will be used for rebalancing.
In terms of brokers, it looks like the best (or cheapest) is iweb at £25 start up cost and then £5 per trade. I don't know how to buy gilts through them – I recall reading I may have to speak to them over the phone to do this and am concerned this may cost a lot more.
Any advice on the above in terms of overall strategy and choice of funds/brokers etc would be greatly appreciated. I am not sure if I am over-complicating the situation by having two portfolios but currently (with my limited knowledge) cannot see a simpler way of doing this.
Many thanks!
I am looking at setting up a UK permanent portfolio after reading Harry Browne and Craig's books (as well as listening to Jake's podcasts and reading as much as I can about this online). Before going any further I was really hoping for some advice from the forum.
My situation is as follows:
I have some inheritance money which is currently sitting as cash in the bank in a taxable account, and some personal savings which are held in a tax free cash ISA. The inheritance money is substantially more than the personal savings.
I plan to move all of this into two separate permanent portfolios; one using the inheritance money consisting of taxable investments (Non ISA portfolio), and one using the personal savings consisting of tax free investments (ISA portfolio).
Non ISA portfolio
25% Equities: Vanguard FTSE UK All Share Index Unit Trust – Income GBP
Fund held directly with Vanguard (no broker)
25% Bonds: TR60 – United Kingdom 4% Treasury Gilt 22/01/60 GB00B54QLM75
Buy on secondary market through broker (iweb?)
25% Gold: The Royal Mint Gold Bullion Allocated Storage
Direct buy and storage at the mint
25% Cash: UK Government Gilts short term bond ladder
Buy on secondary market through broker (iweb?)
ISA portfolio
25% Equities: iShares Core FTSE 100 UCITS ETF
Broker iweb
25% Bonds: TR60 – United Kingdom 4% Treasury Gilt 22/01/60 GB00B54QLM75
Buy on secondary market through broker (iweb?)
25% Gold: Zurcher Kantonalbank Gold ETF ZGLD OR ETF Securities Exchange Traded Gold PHGP
Broker iweb
25% Cash: Cash ISA
Held with commercial bank
Every year I intend to max out my yearly ISA limit (£20k) and buy more tax free investments – adding to the 'ISA portfolio'. Any additional money over the 20k limit will be added to the taxable investments held outside the ISA – adding to the 'Non ISA portfolio'.
The sum of both portfolios will be added together to obtain the combined asset allocation percentages. These combined percentages will be used for rebalancing.
In terms of brokers, it looks like the best (or cheapest) is iweb at £25 start up cost and then £5 per trade. I don't know how to buy gilts through them – I recall reading I may have to speak to them over the phone to do this and am concerned this may cost a lot more.
Any advice on the above in terms of overall strategy and choice of funds/brokers etc would be greatly appreciated. I am not sure if I am over-complicating the situation by having two portfolios but currently (with my limited knowledge) cannot see a simpler way of doing this.
Many thanks!