Keeping Investment in Income Units Rather Than Accumulation Ones
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HL don't charge for selling one fund and purchasing another
In addition, there might be other transaction costs such as bid/offer spread depending on the fund."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
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Bravepants wrote: »I have started to "experiment" with monthly income funds, not with my entire portfolio but a portion of it, just to see how effective and stable they are in providing income compared to capital volatility. I'm with darkidoe in that I would rather try to avoid selling units in retirement (hopefully only a few years off) and I would rather experiment while I'm working than after retirement.
If you haven’t already, I would recommend you follow JohnRo’s monthly income thread here: https://forums.moneysavingexpert.com/showthread.php?t=4662291&highlight=monthly+income"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
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Thank you all for your valuable comments and suggestions. Much appreciated.0
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In the long term inc units will result in slightly lower growth because you will have less money invested overall.0
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Is it true to say though that as the capital value falls the yield increases, and so the income (say monthly) would stay the same or very close?
I mean apart from yield falling because some companies held in the fund would retain more profits to grow the company and thus improve share price.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
Bravepants wrote: »Is it true to say though that as the capital value falls the yield increases, and so the income (say monthly) would stay the same or very close?
I mean apart from yield falling because some companies held in the fund would retain more profits to grow the company and thus improve share price.0
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