Annual Portfolio Review 2019

Annual Portfolio Review 2019

5 Responses

  1. Avatar Al Cam says:

    With a W/D rate of <1% looks to me like you still have absolutely no worries!

    A few quick Q's if I may:
    a) should your "personal target" not be 2.3% rather than 4.1%;
    b) are you using Nov 2019 CPIH as your annual measure of inflation
    c) why have you moved away so much (with more planned) from Fidelity

    • Mike Rawson Mike Rawson says:

      I was worried about Corbyn until last month, but I’m not worried about anything at the moment. There’s a looming market crash to get through, but perhaps not this year.

      a) yes – fixed, thanks for spotting that

      b) yes – I update on 1st Jan and more than one Dec figure is not yet published. It’s the same every year so it works out long-term

      c) I found Fidelity inflexible, even when I had a lot of money with them – they wouldn’t split a large ISA for me and I can’t trade my SIPP online. I also find them like HL in that they push you towards the active OEICs universe, where they make the most money. Budget brokers don’t market anything to me.

      But apart from that, 10% is my target maximum exposure to any counterparty. AJ Bell is the exception because I can’t find another cheap SIPP. I had high hopes for the Vanguard SIPP but it’s aimed at small pots.

      • Avatar Al Cam says:

        re b) above
        As I understand it, most UK government depts seem to use Sept to Sept (usually available from around mid October) to estimate annual inflation and then apply the uplift/increase [to state pension, tax thresholds, etc] the following April. From what I can tell a lot of DB pension schemes also use this approach. IMO what they should use is the average of inflation over the 12 months immediately prior to the uplift being applied – but, I assume, as some of this inflation data may not be available and/or validated in good time – they have to use an alternative approach.

  2. Great post and I love the death ratio idea!
    But to be a bit pedantic – your life expectancy has not dropped by 1 this year – since you’ve not died in 2019 you are statistically going to live by about 0.97 fewer years!
    That’s something to feel good about.
    If you had died in 2019 then that would be a different matter.

    • Mike Rawson Mike Rawson says:

      Good point, but I think rounding is allowed in a high-level post like this. Glad you like the death ratio, it went down like a cup of sick the first time I presented it to an investor group (% gain last year was their only KPI).

      Expected age to the nearest year is all I need for most of the relevant calculations, and my life expectancy has been stuck at 86 since I started looking it up.

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Annual Portfolio Review 2019

by Mike Rawson time to read: 4 min
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