Monthly income

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  • ColdIron
    ColdIron Posts: 8,910
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    Trailing average Monthly Income managed to hit the £500 mark ahead of expectation thanks to a liquidation payment from LSLI that I wasn't expecting. It wound up and paid out last April. I've classed the payment as a special dividend for recording purposes.
    I received this and wasn't expecting it either, any plans on how to report it to HMRC? I received a notice telling me it was a second Liquidation Payment (though no sign of the first, I allowed it to be converted to Consistent Practical) though my statement refers to it as a Return of Capital. Is it a Capital Gain or something else?
  • JohnRo
    JohnRo Posts: 2,887
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    ColdIron wrote: »
    I received this and wasn't expecting it either, any plans on how to report it to HMRC? I received a notice telling me it was a second Liquidation Payment (though no sign of the first, I allowed it to be converted to Consistent Practical) though my statement refers to it as a Return of Capital. Is it a Capital Gain or something else?

    I really don't know the answer, I'd assume since the company is gone this has to be a capital payment since it can't pay dividends if it doesn't exist?

    My classifying it as dividend payment is purely for spreadsheet purposes, also I held LSLI in my ISA at the time so it's a problem I don't have to solve thankfully.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • JohnRo
    JohnRo Posts: 2,887
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    In light of what's hopefully the start of a significant correction, any suggestions for trusts I might consider that fit the specialist sector?

    I've had BBOX suggested in the past but I've decided there's enough direct and indirect property exposure for now.

    I'm looking to ditch UKML at some point this year, so far I'm all set to add a 2% weighting to PCFT as a direct replacement, to shrink the debt allocation to ~8% in the portfolio and up the various specialist holdings to ~ 14%.

    PCFT's somewhat global scope is no bad thing imo and although the dividend yield is fairly low that hopefully gets offset by some decent capital growth.

    It predominantly covers the banking and insurance sector quite neatly which makes it a good fit in the specialist slot I think.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • george4064
    george4064 Posts: 2,803
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    JohnRo, any thoughts on the EAT 10:1 stock split?
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2021 - #027 £15,268 (76%)
  • capital0ne
    capital0ne Posts: 872
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    JohnRo wrote: »
    This portfolio will be ISA wrapped, approx. 50K value. Aiming for upwards of £150 plus a month income and keeping up with inflation.
    Simple calc gives you an interest rate of 3.6% to get £150/month from £50k - no growth with that.
    So to keep up with inflation you neede another 3% or so, so you need a total return of 6.6%.
    Very hard to do, butdoable and I'm sure you could do some research on Morningstar to figure it out yourself or pay an IFA to do it - £50k is a bit small for an IFA but I'm sure if you bunged the a couple of grand they'd be happy to advise.

    Good luck
  • TCA
    TCA Posts: 1,530
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    capital0ne wrote: »
    Very hard to do, but doable and I'm sure you could do some research on Morningstar to figure it out yourself or pay an IFA to do it - £50k is a bit small for an IFA but I'm sure if you bunged the a couple of grand they'd be happy to advise.

    You've replied to a post that's nearly 5 years old and seem to have skipped a subsequent 17 pages of the thread. It's moved on a bit.
  • JohnRo
    JohnRo Posts: 2,887
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    george4064 wrote: »
    JohnRo, any thoughts on the EAT 10:1 stock split?

    Sorry I missed this earlier for some reason.

    I don't really know what to think yet, it shouldn't make much if any material difference to the existing holding, just more shares valued at less each. I can only assume at ~£13 each they've decided SP is a little on the high side.

    In truth I haven't read enough about it yet, given it's only a possibility at this stage?

    I may make a decision if something other than the share split / price changes, but I'm happy with the investment to date so will probably just carry on regardless with it.

    Planning to post an update and some charts in April but the spreadsheet for next years ISA allowance isn't pointing to an EAT purchase, at this stage, until some time in 2019.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • fiisch
    fiisch Posts: 509
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    TCA wrote: »
    You've replied to a post that's nearly 5 years old and seem to have skipped a subsequent 17 pages of the thread. It's moved on a bit.



    This thread will never work, OP's desired returns are unrealistic.
  • JohnRo
    JohnRo Posts: 2,887
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    fiisch wrote: »
    This thread will never work, OP's desired returns are unrealistic.

    Not sure what this means, if it means anything, the thread seems to still be working or you wouldn't have been able to enlighten everyone. MSE may of course have other ideas at some point.

    Sustainable income forever is desired, from a globally oriented, equity based portfolio of investment trusts.

    In what way is that unrealistic? I'm keen to acquire this knowledge.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • JohnRo
    JohnRo Posts: 2,887
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    edited 11 April 2018 at 4:21PM
    DAY 1754 - (09/04/18) update for those interested.

    tl;dr - Bad start to the year, new addition, more of the same.

    Since last update in early January the story is obviously negative, the on off Trump China trade war, recent Western sanctions on Russia(ns) and more sabre rattling over Syria, replacing NK for now. Then to cap it all Eric Bristow checked out..

    gigPJQk.png MDD

    YOG3AxP.png Unit

    I'll just continue to hold and rebalance regardless, expecting common sense to prevail on all sides at some point. Populists certainly seem to crave division and conflict.

    A rising annual trailing average return has started to head down for the first time since mid 2015, if nothing else it bodes well for this years allowance and rebalancing opportunities assuming the trend continues.

    UuIhFuR.png Percentages

    Trailing annual income currently sits at an equivalent average of £521.29 pcm. My next monthly income target of £600 is predicted some time this tax year, as things currently stand, around the end of March 2019.

    TH9ETWK.png Monthly overview

    LblcdhH.png Monthly Detail

    Purchases made since the last update in January..

    2018-02-06 502 POL CAP GBL FIN TR 1.43

    I decided to take a small position in PCGT, as much as I loath the way banks are allowed to operate they and their many subsidiaries are a key component of global markets so hopefully at least some of the vast profits and bonuses they syphon off will filter down to their SP. Yield is a little light but hoping this proves to be more of a blended growth and income specialist sector holding, as some of the others are. Not expecting miracles but feel it's worthy of a specialist slot.

    2018-03-07 221 PRER GLOB 1.34

    A small purchase in March to mop up the remains of last years allowance. Premier Global Infrastructure (PGIT), formally Premier Energy and Water (PEW) has tumbled this year, not for the first time since I've held it. That's made it the worst performing holding in my portfolio in capital terms and also overall when measured over more than one year.

    udKDrqc.png Capital Growth

    It does provide a strong yield though and I'm happy with it overall, barring a catastrophe. Looking forward to a chunky rebalance some time towards the back end of this year or early next, hopefully the SP remains subdued until then.

    2018-04-09 441 JPMORGAN ASIAN IT 3.52

    Kicked off FY2018 with yet another JAI purchase in April, this time a much larger chunk with the new allowance kicking in, which now sets it up for the foreseeable. Not expecting to have to revisit this one for a year or two.

    JAI looks to be broadly in line with the other Asia focused IT holdings, on the surface that seems to imply it's pointless holding it as well as the others but the reasons have been explained and still hopeful there might be some divergence and catching up at some point between all four different managers.

    SNWS2uW.png Capital Growth

    Cost percentages have risen of late due to the portfolio valuation falling, the longer term annual average costs metric has hardly been affected though. I'm hoping to see this number get below 0.20% this year and continue to fall away towards a trivial percentage value and an insignifacant drag on performance.

    gf8wcan.png

    These are the rebalancing plans for the next year, some of the purchase dates will roll into following quarters as the one trade per month schedule unfolds. I show them like this just to provide a road map ahead although priorities may change as the year rolls on.

    U2UiXMc.png
    ZQYOwzx.png

    The Projection has been pulled back to within what I consider a more normal range after the falls this year.

    62v0wsL.png

    Here's the discrete annual performance chart, I'm still planning to add discrete annual XIRR values but haven't got round to including those yet.

    nwwgbfU.png

    That's all folks, apologies for the image overload but hope those interested enjoy, next update towards the end of the year.

    Over and out.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
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