Expat Investing 500K to retire early

[PapaBear]

I'm looking to retire in around 7 years at age 56. I have a final salary pension that is already big enough to support me from 65 but would like to invest my 500K cash savings now to retire early. Info...

I am expat in the USA subject to US taxes but paid in Pounds UK.
I do not own a home
In addition to the 500K I have 120K in equities and 110K in car collection.
I currently save around 40K per year.
I would like 35K per year when I stop working, preferably not drawing down too much on my pot
I have no kids. My wife does not work but has a rental income of 1000ukp per month.

I was thinking about buying a UK rental property for 250K, invest 150K in Vanguards 80/20 passive Life policy and 100K in a managed S&S policy

My risk tolerance is Med/High i.e. I don't want to loose this but am willing to take a wee punt to help it happen. Worst case I see is I have to carry on working for the man a bit longer.

Thoughts please

Edited by PapaBear on Thursday 16th March 22:17

Edited by PapaBear on Thursday 16th March 22:20

[PapaBear]

Thanks for comments. Especially the depreciating asset (Wife). I told MrsBear and she had some non-constructive Feedback. I’ll try and up her rental rate in the short term.

Some clarifications…
I am a UK citizen on Temp work Visa in US. Probably for 3 – 5 years. My Wife is not a UK citizen, her property is in Asia

I’ve been expat for 15years in Asia, Canada and South America. I’m never in a country long enough to buy property and prices are dropping in the State I’m living in. Coupled to high land taxes and sales taxes, I prefer to rent

500K cash is from windfall and some lazy investing.

I don’t know where I will retire to but will maintain some presence in UK. I have full NI stamp.

I’m looking to invest in UK because I’m still paid in pounds UK

[PapaBear]

UKShooter.... Good roundup of my situation. All investment companies have dropped me like a hot potato and my bank don't want to know despite the bulk of my income and savings being channeled through their "Premier" account. (Mortgage companies also don't want to touch my colleagues in the same circumstances and most have omitted to say they are working in US and subject to US tax)

I have been working with a specialist expat UK FA but the fund charges (+/-2%) seem fairly high, thus my 60% / 20% / 20% split plan i.e. 60% rental property / 20% low cost passive fund / 20% Managed Fund. I still need to find a vendor for the passive fund or just not tell them I'm subject to US taxes

[PapaBear]

Thanks, Jeff. I had been trying to avoid local US investments because it would mean transferring funds from UK to US which will cost. Another reason being that I may have to pull out from US at short notice, my contract is short notice. I work in the Personal Security Industry which is very transient

I declare all my current assets and UK investments to the IRS and plan to carry on. I have a local and UK Tax adviser (Same Company) and will check off any potential Funds. Thanks for the Tax heads-up on CG. I wonder if i could be double dipped by UK / US?

As you stated Jeff, it doesn’t seem the best time to rectify a cash situation by coming into Equities but as you point out, I need to try and inflation proof it. I’m still leaning towards some 60% UK Property (holiday let), 20% passive UK fund (SEC Friendly) and a 20% US fund (e.g. Vanguard VTSAX)