How should I split up my investments?

[Maido]

Bare with me as my finances have been put together with no planning whatsoever.

At present I have and in no particular order

1. A nisa with Japanese stock
2. A rupee based bond
3. Two rental properties where I net just over 5万 a month
4. A nisa reit (officially in my wife’s name)
5. A crappy savings plan I’ve been paying into for 30 odd years
6. I pay the maximum of 7万a month on the small business pension (though I reduced it last year)
7. I have some USD insurance investments with Alico Japan bought when the yen was strong.
8. Cash: mainly in a British bank account.
9 I own my home and another property for my business with no resale value other than the land.

I have invested with no rhyme or reason but as I near retirement age (I’m 54) I’m wondering what percentage I should have where.I have no debt but I have 2 children at University, one of whom is doing an expensive course so saving from now until I’m sixty is unlikely.

I am also due to receive 3 small pensions. An old work pension at age 60 (gbp), the Japan pension (I’ve probably paid around 30 years) and a full British pension.

Ideally I’d just like to leave my money somewhere long term and receive an income through dividends, rent. Probably around half my money is in my UK bank account earning nothing so now as the pound is gaining strength against the yen I’d like to put it to use. Though I’d like to keep 50000 in the bank account as it’s immediately available just in case.


Can anyone unravel this and point my in the right direction?

[RetireJapan]

Sounds like you're doing okay, but need to get things clear in your head.

From my read of your post, you seem to have four main 'buckets'

-income (pension, etc.)
-real estate
-cash or cash-like (the SME retirement fund, etc.)
-stock or similar investments

If you list things in that way, are you happy with what you have and the relative proportions? Do you want to move some assets from one bucket to another?

Thinking about the future, what would make you feel more comfortable/get you closer to your goals?

[Maido]

Thanks.

I think I want to be earning something from my money without risking it too much. I feel I’d be happy with steady dividends and rent without chasing growth.

Although I’m quite diversified it is down to chance really and not sure if the balance is correct.

If I had another 50000 GBP still sitting in a bank that I could spare. Where should I be looking to put it rather than just letting it rot away at 0%? More shares, another apartment, reit? Im desperate to put it to use.

[Wales4rugbyWC23]

Are the two rental properties in the UK or Japan?

[Maido]

They are both in Japan.

Both were cheap and while I won’t make money from selling them I doubt I’ll lose much either.

[RetireJapan]

If I had another 50000 GBP still sitting in a bank that I could spare. Where should I be looking to put it rather than just letting it rot away at 0%? More shares, another apartment, reit? Im desperate to put it to use.

For yields, ETFs/REITs are going to give you around 3-5%
Individual dividend paying stocks 2-8%
Rental properties in Japan around 5% based on this: https://nippontradings.com/properties/

Or you could go for global index funds for the passive long-term growth approach.

At the end of the day only you can answer this question though: what do you want and how much risk/volatility are you willing to take on to get it?

[Maido]

I’m thinking of increasing stock. Sumitomo pays around 5% which looks good these days.

How id love to have a stepped bond at the rates of not so long ago.