{"id":7616,"date":"2020-08-31T09:32:06","date_gmt":"2020-08-31T09:32:06","guid":{"rendered":"https:\/\/www.foxymonkey.com\/?p=7616"},"modified":"2020-08-31T10:15:58","modified_gmt":"2020-08-31T10:15:58","slug":"all-weather-portfolio-uk","status":"publish","type":"post","link":"https:\/\/www.foxymonkey.com\/all-weather-portfolio-uk\/","title":{"rendered":"The All-Weather Portfolio for UK Investors [Portfolio Ideas]"},"content":{"rendered":"\n

The All-Weather portfolio is a powerful way to grow your wealth without losing your sleep. This article discusses the All-Weather portfolio for a UK investor. It shows who should invest in it, how suitable it is for financial independence and how you can build it using low-cost ETFs in an ISA.<\/p>\n\n\n\n

This is the first article in the new portfolio ideas series. I look at different portfolios and discuss their purpose, their performance, their assets mix and how painful it is to hold them.<\/p>\n\n\n\n

I also show how to build each portfolio yourself. It should act as a good starting point for your investments or a good place to review your current holdings.<\/p>\n\n\n\n

What’s the best portfolio? What investments should we hold when we start withdrawing so we don’t run out of money? Which portfolio maximises returns but minimises regrets? All valid questions.<\/p>\n\n\n\n\n\n\n\n

Past performance is no guarantee, but we should definitely take the asset expectations when building a portfolio.<\/p>\n\n\n\n

The selection of different assets and their weights is called asset allocation<\/em> in investing jargon. Your asset allocation is what will ultimately drive your returns<\/strong>, not which provider of funds you choose. Every investor should start by choosing how offensively or defensively they want to invest based on their goals.<\/p>\n\n\n\n

Everyone is different. What is right for me may not be right for you. I have a different risk profile, time horizon and needs. To give you an idea, I may choose a different portfolio to build my wealth and another one to preserve it. The idea of the all-weather portfolio is not to craft the perfect asset allocation. There is no such thing<\/strong>. Only in hindsight.<\/p>\n\n\n\n

But it is built for those who want their portfolio to give moderate returns under ALL circumstances.<\/p>\n\n\n\n

Some portfolios have different expectations than others. So we should create our portfolios with expectations as guidelines, not guarantees. Use more cash and you’ll have a smoother journey and probably lower returns. Add a little gold and you may be better off. Add more and expect wider outcomes! Bitcoin, property, small-caps and many more to choose from.<\/p>\n\n\n\n

I would like to focus on 4 areas so that you can decide which portfolio is better for you:<\/strong><\/p>\n\n\n\n