Adventurer
Dryer sheet wannabe
- Joined
- Dec 12, 2018
- Messages
- 22
Hello all, I joined a week or so ago, I’m a Brit, late 40s, ready to retire. While my situation relates to the UK, I’m sure the questions or considerations equally apply to all countries.
I’m interested to understand how others manage their income and investments in early retirement. As well as a bunch of work pensions that’ll start paying out in 15 years or so, I have a whole range of share-ISAs, index funds, corporate bonds, shares and cash. My retirement plans, and financial modelling, are all based on the non-pension investments and assume roughly 4% return, which would provide plenty income for living well, while not eating into the capital (when they materialise, the pensions will be a pleasant bonus).
For people in a similar situation, how do you manage or withdraw your income? Do you structure funds as ‘income’ to provide the dividends to live off? Or, perhaps just sell shares/ units? I would attempt to balance my income with capital gain to minimise tax burden. Presumably this is how you all structure your finances?
Finally, given the extremely volatile last few months, and probably volatile markets through US-China trade dramas, Brexit etc … would you typically withdraw your income while your capital may be declining? Presumably everyone just accepts the short-term volatility or capital declines, while assuming the long term will deliver 4% plus?
Thanks in advance for any pointers ... this is a very helpful forum to find!
I’m interested to understand how others manage their income and investments in early retirement. As well as a bunch of work pensions that’ll start paying out in 15 years or so, I have a whole range of share-ISAs, index funds, corporate bonds, shares and cash. My retirement plans, and financial modelling, are all based on the non-pension investments and assume roughly 4% return, which would provide plenty income for living well, while not eating into the capital (when they materialise, the pensions will be a pleasant bonus).
For people in a similar situation, how do you manage or withdraw your income? Do you structure funds as ‘income’ to provide the dividends to live off? Or, perhaps just sell shares/ units? I would attempt to balance my income with capital gain to minimise tax burden. Presumably this is how you all structure your finances?
Finally, given the extremely volatile last few months, and probably volatile markets through US-China trade dramas, Brexit etc … would you typically withdraw your income while your capital may be declining? Presumably everyone just accepts the short-term volatility or capital declines, while assuming the long term will deliver 4% plus?
Thanks in advance for any pointers ... this is a very helpful forum to find!