A small proportion in cash (enough to survive for a year or two if I want to stop being employed). The rest in equity index funds, spread between UK, US, Europe, Japan/Pacific. Some of those equities are in retirement funds for the tax advantages, and for the discipline of not being able to spend them any time soon.
That seems reasonable for me now, as someone who's young and employed. My future earnings ("human capital") are likely to be bigger than my current financial assets (because I'm young) and fairly steady and bond-like. As I get older, or if I become self-employed, I would move more of my financial wealth into safer assets (eg long-dated index-linked bonds).
That seems reasonable for me now, as someone who's young and employed. My future earnings ("human capital") are likely to be bigger than my current financial assets (because I'm young) and fairly steady and bond-like. As I get older, or if I become self-employed, I would move more of my financial wealth into safer assets (eg long-dated index-linked bonds).