How I manage my moneyA high income is not a reason to ignore concentration risk

The illusion of expertise

Working as an IT consultant with a £136,000 income, I often think that my analytical skills naturally translate to my personal portfolio. It is a trap. I have spent years solving problems for clients, but looking at my own finances feels entirely different. I have £24,000 tied up in a single employer-linked investment, a decision I made when I was younger that I now realise was based on comfort rather than a sound long-term strategy.

Competing responsibilities

My monthly outgoings are significant, with an £1,800 mortgage being the anchor. Balancing those costs with my responsibilities to my children requires a constant juggling act. I have set up a £400 monthly long-term saving plan, but I often look at those numbers and wonder if the concentration of my current holdings is a risk I should have addressed years ago.

The danger of a single path

I see my high income as a buffer, but it is also a blind spot. Because I have cash flow, I have ignored the fact that my assets are heavily weighted in one area. The mistake has been assuming that because I have a decent annual income, the details of my investments would simply sort themselves out. I have been passive, which is the last thing I would ever tell a client to be.

Having a high income and professional knowledge does not protect me from the risks of failing to diversify my own money.

Looking at the bigger picture

I am now in the process of evaluating whether my current allocation actually serves my long-term goals or if it just reflects my past employment history. It is a sobering exercise. I have to look at the numbers objectively, separating my career achievements from the health of my actual assets. It is a slow, uncomfortable process to admit that I have been neglectful in my own time.

Knowing the limits of my expertise

Nothing is fixed. I am still weighing the merits of diversifying against the simplicity of my current setup. There is no simple answer, and no guarantee that any change will result in a better outcome. I am just trying to ensure that I am not blinded by my own professional ego, allowing the risk of concentration to dictate the stability of my future.