Where do I have my money now?
My own investments
I am not out to make investment recommendations. But I can show you what I currently have my money invested in, and where I am trying to get to. Here you can find my target asset allocations, and where I am right now.
I’m showing you here where our financial assets are, in terms of asset allocations. Diversification is the only free lunch in investing, and my aim is to remain diversified.
We have significant wealth tied up in our family home. But I don’t consider that as an investment. It doesn’t generate much of a return. It’s illiquid and it generally just costs me money to run and maintain. We love it, but it is not a financial investment.
We always have some amount of ‘working cash’ in various accounts around the world for paying for things. I’ve excluded that from the investment side of things. To quote the great Pete Matthew, of meaningful money podcast fame, “Cash is not an investment”.
So here are our investments, without cash or our family home.
Where do I want to get to?
My target asset allocation
This is what I’m aiming for. Life is a journey and we’re not at this destination yet. But I have a target. It’s roughly a 75/25 split between equities (shares) and bonds, with a chunk of investment property thrown in. This may change whenever we return to our home country. We also aim to hold around 5% of gold as ‘insurance’ for when bad stuff happens.
Investment property is currently too large a slice of the pie. Property is expensive to buy and relatively illiquid. Two of the main reasons why I want to add to the rest of the portfolio but not add any more property at the moment. it does, however, provide us with a nice income to help us buy more equities. These are the main driver of our portfolio growth.