Suggest a fund for income
Discussion
BanzaiMan said:
Jaguar steve said:
I've got a cautious to medium attitude to risk,
What tools did you use to assess your ATR?From what I've read since that seems about right.
xeny said:
It's not altogether impossible that will cost you more than any conceivable ineptitude on your part achieves, especially if you're talking about an amount that will fit in an individual premium bond allowance.
You've had a range of suggestions in this discussion.
I'd suggest writing them out in a table, look at the "expected" income, the fee structure, and look on google finance, morningstar or similar to see how volatile they are over time (i.e. can you sleep at night). Anything that has a decent return will fall in value during a panic like 2008, that's the nature of the beast - if you can't accept that, investing is probably a bad choice for you.
Remember that overall return is higher where risk is higher, and assess overall return by adding the fee to the expected or historic customer return. If you're going to take risk, it makes more sense that you're much more highly rewarded for it than the company running the investment - it's your money on the line after all.
You're looking at maybe 4 hours work, and if you count the overall return on that work, they may be the best rewarded 4 hours work of your life.
Funds have sat doing nothing for over three years apart from the odd PB win here and there and I've done SFA to make sensible use of them. Inflation is chewing away at the value too. You've had a range of suggestions in this discussion.
I'd suggest writing them out in a table, look at the "expected" income, the fee structure, and look on google finance, morningstar or similar to see how volatile they are over time (i.e. can you sleep at night). Anything that has a decent return will fall in value during a panic like 2008, that's the nature of the beast - if you can't accept that, investing is probably a bad choice for you.
Remember that overall return is higher where risk is higher, and assess overall return by adding the fee to the expected or historic customer return. If you're going to take risk, it makes more sense that you're much more highly rewarded for it than the company running the investment - it's your money on the line after all.
You're looking at maybe 4 hours work, and if you count the overall return on that work, they may be the best rewarded 4 hours work of your life.
Yup, definitely agree there's a balance between not getting it quite right myself for free and paying fees to get it spot on. An IFA is the easy option and the longer I do nothing the better value that option gets.
Will have another wade through everything I've gathered so far over Christmas though just to finalize. Cheers for your advice
Jaguar steve said:
BanzaiMan said:
Jaguar steve said:
I've got a cautious to medium attitude to risk,
What tools did you use to assess your ATR?From what I've read since that seems about right.
What do you need the extra income for and will that amount change over time?
Might it be worth taking that income from a cash deposit account (if for a shorter term) rather than a fund?
How important is it to have the income guaranteed?
Given your attitude to risk are you happy for your fund/portfolio to be 100% equity rather than, for example, fix of equity and bonds?
Do you have sufficient emergency funds?
BanzaiMan said:
Jaguar steve said:
BanzaiMan said:
Jaguar steve said:
I've got a cautious to medium attitude to risk,
What tools did you use to assess your ATR?From what I've read since that seems about right.
What do you need the extra income for and will that amount change over time?
Might it be worth taking that income from a cash deposit account (if for a shorter term) rather than a fund?
How important is it to have the income guaranteed?
Given your attitude to risk are you happy for your fund/portfolio to be 100% equity rather than, for example, fix of equity and bonds?
Do you have sufficient emergency funds?
At the moment we're slowly chipping away at capital to supplement Mrs JS's income. Reducing capital drain or stopping it all together by increasing income through better investment choices and blagging a few hours part time work is the aim.
100% equity looks risky to me. I'm too old to wait for capital to build back up if the market tanks, there's not enough in my Personal Pension to raid over the long term and I'm 10 years away from my State Pension.
Whatever we'll keep enough in cash accounts to cover the roof caving in or the boiler or daily Shed exploding.
More to think about - Ta
Badda said:
bad company said:
It’s like a ‘fund of funds’ so the risk is spread. `I’ve held them for some time and have done very well.
It's only been going 20 months? At the most, you'll have made 12% plus a 2.5% divi - does this sound familiar?
By my reckoning that's significantly worse than a FTSE all share tracker would have achieved.
I understand that the op is looking for a steady income fund.
Edited by bad company on Friday 22 December 01:08
Are you both using all your ISA allowance?
If not I would be considering a Vanguard ISA and pick your fund from there but from what you say one of the life strat funds sounds right, 60 or 80.
There are accumulation or income versions.
Have you heard of the 4% safe withdrawal rule? If its a larger sum and you are using it to supplement income then would you be any where near 4% (per year)?
If not I would be considering a Vanguard ISA and pick your fund from there but from what you say one of the life strat funds sounds right, 60 or 80.
There are accumulation or income versions.
Have you heard of the 4% safe withdrawal rule? If its a larger sum and you are using it to supplement income then would you be any where near 4% (per year)?
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