Portfolio of income generating assets

Marine_life

Some of you may know from my other thread that I am looking to retire in just over 2 years. I will be 50 years old and until my pensions begin to kick in (at around 60) I will be living entirely off savings.

I am starting to give more thought to how that's going to be funded and would like some thoughts from those in the know or who have already taken the leap.

We expect to have a minimum of €1 million in liquid assets (with around another €700,000 tied up in property (all mortgage free by then). I don't expect to realise any cash from the properties so it will be just the cash to live on.

I think we can live comfortably on around €70,000 per year and probably less.

I am comfortable to eat into the capital although clearly would like to minimise.

I expect we will split the assets between shares, bonds and cash deposits - is that what others do? What ratio's should I think about?

Would appreciate any thoughts

BLB53

At your age, I would be looking at mainly equities. So maybe 60% equities, 20% fixed interest bonds and 20% cash.

So far as equities, either individual blue chip higher yield shares or investment trusts. Starting yields will be around 4.5% - 5% and rise steadily ahead of inflation.
Corp. bonds and or building society PIBS could yield 5% - 7%. So between the two you should be averaging around 5% starting yield.

I recently downloaded a good book recommended on the Monevator website - 'Slow & Steady Steps...' by John Hulton which deals with this in some detail so worth having a look.

Also on the Motley Fool they have discussion boards on high yield
investing - called hyp practical (among others) so also worth a look as well as Monevator.

Good luck.

Marine_life

BLB53 wrote: »

At your age, I would be looking at mainly equities. So maybe 60% equities, 20% fixed interest bonds and 20% cash.

So far as equities, either individual blue chip higher yield shares or investment trusts. Starting yields will be around 4.5% - 5% and rise steadily ahead of inflation.
Corp. bonds and or building society PIBS could yield 5% - 7%. So between the two you should be averaging around 5% starting yield.

I recently downloaded a good book recommended on the Monevator website - 'Slow & Steady Steps...' by John Hulton which deals with this in some detail so worth having a look.

Also on the Motley Fool they have discussion boards on high yield
investing - called hyp practical (among others) so also worth a look as well as Monevator.

Good luck.

Thanks for the tips - i will check them out

bigfreddiel

Marine_life wrote: »

I think we can live comfortably on around €70,000 per year and probably less.

i'm just curious about your lifestyle - and you can ignore this question if it's too personal - what do you do that requires €70,000 per year?

my partner and i get by fine on £30k per year.

cheers

fj