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Investment styles can affect correlations
June 18, 2020, Eilidh Anderson, Paul Bowater and Rob Harrison

Simon is age 47 and  earns around £250,000 a year as a chief executive. His wife is 40 and does not work, but each year makes the maximum pension contribution possible for those with no income. He also uses his full pensions annual allowance, and they both put the maximum amount possible into individual savings accounts (Isas) each year, which for the 2020/2021 tax year is £20,000.

Reader Portfolio
Simon and his wife 47 and 40
Description

Pensions and Isas invested in cash, residential property, wine and art

Objectives

Retire early, generate Â£50,000 per year by drawing 4 per cent from investments, sell buy-to-let properties and invest proceeds in funds

Portfolio type
Investing for goals

Simon and his wife's home is valued at £1,650,000. They also have buy-to-let properties worth £750,000 and £550,000, which generate annual net incomes of £17,250 and £18,750, respectively. All the properties are mortgage free.

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