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myprivate

Preparing to retire - income generating trusts/funds

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Posted (edited)

Hope to retire soon with income producing fund/trusts that I can buy and forget for 20 years. Need around 4.5% yield. Can buy through my UK stockbroker account.

Fortunately I had most of my savings in a Gold ETF and cash before the recent crash because I was waiting for this type of correction. This could be my last chance to buy cheap before I retire. Problem now is I'm a bit concerned that corporate bonds are cheap because they could default, and government bond yields are too low. It's pushing me to equity funds, but they are a bit too volatile for retirement. The traditional ratio at retirement is around 80% bonds because they are 'safer', but are they really that safe anymore?

Any ideas for funds/trusts? I've researched the hell out of it, but I've come across some smart guys on TV in the past.

Edited by myprivate

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Posted (edited)

Oops.  Just noticed OP is a Brit, so don't know if the US funds mentioned will be accessible or not.

Edited by cmarshall

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create multiple streams of income, ie, rental homes, buy gold, bonds, look at vanguard for options.

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Posted (edited)
53 minutes ago, cmarshall said:

Oops.  Just noticed OP is a Brit, so don't know if the US funds mentioned will be accessible or not.

Of course, anyone can invest in US markets.

Unfortunately, British stock markets have not even been close in performance to superior US markets over the past 10 years+.

Most the major tech companies and most successful companies in the world for investments are where?

 

I would set up an international account accessing US stocks and invest in a quality mutual fund.

Mine has averaged over 8% for a very long time.  Some down years, many up.

I think 80% bonds is way too high.  I would say 80% equity is better.

And yes, now could be one of the great buying opportunities ever.

 

 

Edited by bkk6060
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You're in a good position to be holding cash now.

 

If tied to UK markets have a look at some ETFs ..VUKE, IUKD or some high div stocks such as RIO, BHP, BP, RDS....most insurance companies pay a good div as well......I hold all of these solely for the dividend so still get the same yearly payments even with the price fluctuations (as long as they dont cut the dividend)

 

Your better off getting exposure to US markets as there is way more choice of stocks/funds and easier to research....if you dont like individual stocks, Vanguard/SPDR/Blackrock have huge choice of etfs linked to indexes/sectors 

 

I'm invested in a mixed bag of fixed income/options CEFs paying average 8% in monthly payments so give a nice income stream.

 

 

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2 hours ago, bkk6060 said:

Of course, anyone can invest in US markets.

But they get clobbered with a high level of withholding tax on income.  Best avoided.

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19 hours ago, myprivate said:

The traditional ratio at retirement is around 80% bonds

 

I don't think so.  A 60/40 portfolio is what has traditionally been recommended.  Bonds don't allow for capital growth, so 60% equities covers that, as well as providing a (hopefully) growing income.

 

 

 

 

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19 hours ago, myprivate said:

Any ideas for funds/trusts? I've researched the hell out of it, but I've come across some smart guys on TV in the past.

Ahhh yes,   the good old days !   Nothing like that now i'm afraid

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9 minutes ago, Oxx said:

But they get clobbered with a high level of withholding tax on income.  Best avoided.

any type and/or amount of income in the US is taxable, regardless if resident/non resident/citizen.... even the poor retirees who have worked there, paid taxes there, not residing there but collecting their retirement from them is taxed on it

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19 hours ago, timendres said:

With central banks reducing interest rates to zero world wide, these are very difficult times for savers and retirees.

Yep !   

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19 hours ago, timendres said:

With central banks reducing interest rates to zero world wide, these are very difficult times for savers and retirees.

we may have to pay the bank to hold our money

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I have been investing in small internet business companies for the past 20 years with great success. I chose companies that want to grow and have no debt. They all are 100% owned with little or no overhead as they worked from their home. A few didn't make it but around 90% are still doing great.

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