single and aiming for a financially stable partner

Its probably (hopefully) not too obvious in this blog that I’m single (and as it happens female). I’m not looking for a boyfriend at the moment, although if one turns up that would be ok. But I wouln’t want my fiscal stability upset by mingling my finances with someone irresponsible. Is it ok to weed out potential partners based on the state of their finances?

On reflection, I think that its unlikely that I’d be attracted to someone who was truly reckless – in money or other matters – I’m just not that adventurous. On the other hand, asking someone about their credit card bills on a first date is probably a significant enough social faux pas that there wouldn’t be a second date.

They say that you can’t change a man (or woman for that matter) so I’m stuck with hoping that any future contenders are financially stable – or at least not going to drag me down with them.

i need a strategy

I wrote here that I think that the best way to decide on which type of pension would suit is to have an overall strategy and then find the provider with the cheapest cost. I also wrote earlier that I have set up my ISAs for this new financial year. So what is my investing strategy?

I basically don't have one. I have invested all my funds in FTSE All Share Trackers. Its not going to be pretty if the UK goes into a 40 year depression. Why have I done this? Well, I don't know anything about how to pick actively managed funds, but I am aware that the majority do not beat the FTSE index. And they are expensive. I can pick up a FTSE Tracker for 0.1% annual fee but many managed funds have fees more like at least 1%. Thats ten times as much. So it looks like to me, index funds are the way to go, certainly for now.

I'm lead to believe that I should diversify my portfolio with asset allocation. I have no idea about this. I have a very small pot in three separate locations, two pension funds and one ISA. I need to investigate whether I would meet the minimums for additional funds or investments. But first, I think I need to work out which funds I might want. But fund names are so unobvious. Take one of the top 150 picks from Mark Dampier's Wealth 150 at Hargreaves Landsdown the Standard Life Global Equity Unconstrained Accumulation Units fund. I'm sorry, how many big words do you need to have in your title?

What I think I need is a bit of money invested outside of the UK. But I'm not sure. I've caught financial paralysis. The easiest thing to do would be to do nothing. But that is bound to lose me money. So I'm doing what I think is the second easiest thing, despite my detractors. I'm investing in something that I understand. Hopefully sometime soon, I'll learn enough to make a more informed strategy.

morbidity is nothing to be scared of

Yesterday a most unusual event occurred. In conversation with a couple of people that I know, it transpired that one of them had just made their will, the other one hadn't. This is unusual because in my normal life, people don't discuss their personal financial affairs with me.

I'm a little concerned about the guy who didn't have a will. He's living with his partner in a house that they own, who his family may or may not wholly approve of. Under English law, without a will, his parents will inherit his estate including his share of the house. This may put his partner in considerable difficulty and the same would be true if his partner died. In this case, he was aware of the law and agreed that he should get around to making a will. However, it is relatively common for people to be unaware of inheritance law and how it may affect them.

Firstly, in English law there is no such thing as a common-law partner. If you are living with someone who is not your spouse or civil partner, they have very few rights if you die without a will. In particular they will not inherit your estate. If you own a property as tenants in common, then the share of the property that belonged to the partner who died will pass to their blood relatives which could be uncles, aunts or cousins. If there are no blood relatives, the estate passes to the Crown (aka the government). If they are financially dependent they may be able to apply for support through the courts but this is not guaranteed.

Secondly, if you are married or in a civil partnership and you die without making a will, then your spouse or civil partner will not necessarily inherit your entire estate. How much they get will depend on whether the deceased had any children.

For more information on intestacy laws in England look here. Or, don't worry about them and make your will. I will be making mine as soon as I manage to buy my house. I promise.