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Investing for income

I am considering cashing in my Virgin Index Tracking ISA and then investing the money into either the City of London Investment Trust or The Merchants Trust (really not sure which one of those is the best, but they both look quite good) as I now need a bit more income rather than long term growth.

Would this a good time to do it, while the market is on the slide?
Stopped smoking 27/12/2007, but could start again at any time :eek:

Comments

  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Timing the market is notoriously difficult but getting out of the Virgin isa would be a good idea, it's very expensive for a tracker and is uk based, so no allocation to the rest if the world.

    As you're no doubt aware you wouldn't want to cash in the USA but transfer it so you don't lose the tax wrapper, the ITs you suggest seem to be fairly solid long term performers.

    The other thing to remember is that you don't have to go for a high income or dividend paying invest for income, if ther is capital growth then you can always sell some units or shares to take income as the capital value increase.

    Edit - how does this tie in with your other savings or investments as that will have a bearing on what you might do.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    bigadaj wrote: »
    As you're no doubt aware you wouldn't want to cash in the ISA but transfer it so you don't lose the tax wrapper, the ITs you suggest seem to be fairly solid long term performers.

    Edit - how does this tie in with your other savings or investments as that will have a bearing on what you might do.
    Corrected that for you!

    and the rest of the portfolio is relevant - being exclusively UK based may not matter if the OP has other inestments elsewhere.
  • melbury
    melbury Posts: 13,251 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've been Money Tipped!
    Many thanks for your replies.

    I don't have vast investments, but as retirement approaches would like to generate a little bit more income - even if it is only a few hundred pounds a year.

    I like investment trusts and have shares in Fidelity Asian Values, Fidelity Special Values and Perpetual Income & Growth (the only dividend paying one).
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • Sam_J12
    Sam_J12 Posts: 253 Forumite
    One thing that is really important, and that often people don't talk about, is to look at the previous history of the fund in growing the income. I would say that is at least as important as the actual yield or potential for capital growth.
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