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Preparing to retire - income generating trusts/funds


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On 3/27/2020 at 2:02 AM, myprivate said:

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

Only 2 classes of retirees.

1) Due to age, due to poor health or by being an old dog that can't learn new tricks.

2) Optimists.

 

Optimists that retired young are here, here and here.

 

Pessimists usually invest in gold, wait for a crash and wait some more to buy cheap.

Pessimists always go broke.

 

 

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19 hours ago, bkk6060 said:

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.

 

 

In general, perhaps, but not all instruments, such as particular bond funds, will be accessible to foreigners.  In addition, holding US bond funds denominated in USD exposes a foreign holder to exchange rate risk.  Now, I would expect holding dollar assets to be an advantage for a Brit given the expected effect of Brexit on GBP, but it there is a currency risk.

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Back in early 2016 I designed a portfolio for an elderly woman living in Thailand.  It was designed to be "invest and leave", and conservative.  At the time I backtested it for 5 and 10 years.  The weighted 5 year annualised return then was 10.5%.  It now yields 3% - a bit less than the OP wants, but as a non-UK resident, there's no capital gains tax to pay, so functionally capital gains are equivalent to income.  The extra return (taking the yield up to 4%) was to be taken from annual rebalancing.  It's all Investment Trusts and ETFs available on the London Stock Exchange, so easy to invest in.

 

I attach the details as something to provoke thought.  Note that I've updated the yield and Morningstar ratings, but not the comments (which are now a bit inconsistent).

 

Whilst I might make minor adjustments to the individual instruments (e.g. these day I tend to use Lyxor, rather than iShares) I believe the basic idea is still sound.

 

Sample Portfolio.pdf

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18 hours ago, Lannathaijohn said:

Best advice is to go through a financial advisor that is registered with the financial authorities. They will assess your situation with you and point you in the right direction

And take a large slice of your initial investment and any profits for doing so, as I have personally experienced.

If a Financial Advisor is so good, why does he not put his own money where his mouth is and quit scamming genuine people

Edited by stouricks
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20 minutes ago, Oxx said:

Back in early 2016 I designed a portfolio for an elderly woman living in Thailand.  It was designed to be "invest and leave", and conservative.  At the time I backtested it for 5 and 10 years.  The weighted 5 year annualised return then was 10.5%.  It now yields 3% - a bit less than the OP wants, but as a non-UK resident, there's no capital gains tax to pay, so functionally capital gains are equivalent to income.  The extra return (taking the yield up to 4%) was to be taken from annual rebalancing.  It's all Investment Trusts and ETFs available on the London Stock Exchange, so easy to invest in.

 

I attach the details as something to provoke thought.  Note that I've updated the yield and Morningstar ratings, but not the comments (which are now a bit inconsistent).

 

Whilst I might make minor adjustments to the individual instruments (e.g. these day I tend to use Lyxor, rather than iShares) I believe the basic idea is still sound.

 

Sample Portfolio.pdf 56.37 kB · 3 downloads

I hold only two of your ten, JPM EM and Witan, both are very sound holds for me personally although I have a 15% stake in JPM EM.

 

I also hold L&G US Index which is all I need to cover off the US market and saves lots of time trying to find US funds that have consistently outperformed the benchmark.

 

My best performer and long term favorite hold is Baillie Gifford Int which I've held since 2004 and is very reliable, it's also top of my recovery pack at present and is only 2.5% down. The joint FM's are two of the best in the business and the level of global diversification means they can switch between key regions easily.

 

On the bonds front I opted for  Royal London Sterling EY and Man GLG strategic, both took a hammering in the past few weeks but Mann less so than RL.

 

For Asia coverage I use First State Asia which has an excellent reputation and track record.

 

I wouldn't swap any of the above for any reason I can see, I have a couple of others that need reconsideration but not the above, LT and Fundsmith being two, both of which seem to have become too big and unwieldy.

 

I would add that I am by no means even close to talented in this area, the above recommendations to me came by way of a trusted and highly respected friend.

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15 hours ago, rickudon said:

Invest in any company specialising in video conferencing. Every company needs it these days.

These type of companies are normally growth stocks. I believe the op is looking for income.

However, the stock that is being given much attention is Zoom in the usa, ticker ZM.

Still be careful of timing, even the best stocks can get slammed in bear market downturns on the slightest of bad news.

If we are in a bear market, be careful of getting caught up in sharp rallies. 

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On 3/29/2020 at 3:15 AM, Oxx said:

Back in early 2016 I designed a portfolio for an elderly woman living in Thailand.  It was designed to be "invest and leave", and conservative.  At the time I backtested it for 5 and 10 years.  The weighted 5 year annualised return then was 10.5%.  It now yields 3% - a bit less than the OP wants, but as a non-UK resident, there's no capital gains tax to pay, so functionally capital gains are equivalent to income.  The extra return (taking the yield up to 4%) was to be taken from annual rebalancing.  It's all Investment Trusts and ETFs available on the London Stock Exchange, so easy to invest in.

 

I attach the details as something to provoke thought.  Note that I've updated the yield and Morningstar ratings, but not the comments (which are now a bit inconsistent).

 

Whilst I might make minor adjustments to the individual instruments (e.g. these day I tend to use Lyxor, rather than iShares) I believe the basic idea is still sound.

 

Sample Portfolio.pdf 56.37 kB · 12 downloads

@Oxx Many thanks for sharing that portfolio. Excellent post! Am I right in assuming that there is a fair amount of overlap with that portfolio and your own in terms of funds chosen (though with different % asset allocations)?

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18 hours ago, AprilWine said:

Am I right in assuming that there is a fair amount of overlap with that portfolio and your own in terms of funds chosen (though with different % asset allocations)?

 

Not really.  I have a longer timescale than the elderly woman for whom I constructed that portfolio (I'm substantially younger) so I can afford to take more risk.  I also have access to UK funds, and am not restricted to investment trusts and ETFs.  My Thai investments are with Thai asset managers, rather than offshore.  The principles, however, are similar.  I allocate top down by asset class.  My target allocation is:

 

Uncorrelated    12%    
Thai Property    10%
Thai Equity    10%
Infrastructure    10%    
Global    15%
UK    10%
Europe    10%
US    5%
Developing Asia + Emerging Markets    15%
Japan    3%

 

(Uncorrelated is mostly index-linked Gilts and TIPS - specifically GILI and TIPG.)

 

I do, however, hold SOI, HDIV, JMG in common with the portfolio previously posted, and have held for many years.
 

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14 minutes ago, adwbkk said:

Could anyone recommend, or suggest, a Thailand based brokerage for someone brand new to the idea of investing in Thai Shares?

 

You might find the following discussion helpful

 

 

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