Comments invited on plan baj25

#1
Following on from my thread on income in retirement, IÂ’ve spent a lot of time trying to work out what to do with some long standing investments, and I think I have a simple plan on which I invite comments.

Current holdings, 100K in L&G All Share trackers (ISAs) (split in mine and wifeÂ’s names), 13K in Close growth fund, 27K in M&G Recovery (both ISAs). 90odd K in cash ISAs.

I am currently thinking to transfer all the above funds into VLS 40 or 60 on ii platform. Not sure what to do with cash yet, probably put some into income generating funds while keeping a reserve.

I will also make SIPP payment in the next few weeks of maybe 100K gross, principally to minimise tax this year, again IÂ’m thinking VLS for this.

If we got 16-20k p.a. out over next 12 years I would be happy, even with some capital erosion, then should be reasonable amount left as SP kicks in and I assume we will spend less in our 70s as well.

That seems to give diversification (if not of provider), something I understand, a level of equity risk that I can live with, and pretty low charges. ii comes up as cheapest platform on comparison sites for those figures. IÂ’ve looked at this until my head hurts (literally), anything I am missing? I assume income rather than accumulation units?

IÂ’ve rattled on a bit thereÂ… thanks for bearing with it, any thoughts/ suggestions/ advice gratefully received. Brian

#2
Vls is a good general fund but it's not one designed to produce income. Also the supposedly lower risk flavours are by definition very bond heavy, and returns on bonds may well be poor in future with a risk of capital loss.



You haven't definitive stated your intent, it sounds as though after this years large sipp,payment you are effectively looking to drawdown an income from investments for the next decade or two?



If that's the case I might look at a range of income funds or investment trusts, income generation is an area that active funds seem to normally out perform passives.



A poster on this forum has related on his experiences on a range of income producing investment trusts and I think monevator has some useful info as well.

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