Portfolio Bond

Linton

aerochago wrote: »

Yes thats what we should have done, we just accepting everything was ok and never checked it! We have stopped now so would you suggest we dont draw anything until, when?

You should apply some primary school mathematics. In order to sustainably take an income of 5% you need to have 5% coming in. You did have roughly 5% coming in so you roughly broke even as expected. If you had checked this once each year for the past 5 years you could have seen what was happening and adjusted things accordingly.

If you then want capital growth and inflation matching as well you need a lot more than 5% coming in. You wont get this from cautious investments. History shows you may not get this safely from risky investments.

So you have to decide what you want within the bounds of reality. And then you need the appropriate mix of investments to provide it.

To answer your final question. You should monitor your capital perhaps once a year and drawdown less than than the total growth. Remember the less you draw down now the more you will be able to draw down later.