Just retired, any thoughts on my portfolio

a_gasman

Hi folks, just joined the forum today so hello!
I have just recently retired and we can live on my work pension and state pension combined.
We have no mortage or other debts, with sufficient funds in the bank to last a few years or pay unexpected expenses.

I have a selection of funds as listed below to the tune of 65K I will now be taking the dividends instead of reinvesting to supplent my income.( extra holidays )

I have never taken any financial advise but chose my own funds. I look for some opinions or alternative funds that I could invest in, bearing in mind I do not need this income but consider it as a hobby with hopefully some profit /excitement and no i dont want bonds my pension is my safe money .

Thanks in advance. ;)



AXA Framlington monthy income 18%
Fundsmith equity 16%
J O Hambro UK Equity income 22%
Lindsell Traill Global Equity 20%
Threadneedle UK Equity Income 24%

El_Torro

If you already have enough money in safe places to last a few years I wouldn't be focussing on high dividends in your shares. You can use your cash savings to ride out any dips in the market and just target growth in your portfolio. Then you can sell shares when the market is high if you want any extra income. I think chasing income can hurt the long term growth of your portfolio.

So I think I'd personally invest in a global equity tracker, maybe even include some sattelite funds (Emerging markets, or small companies, or whatever else you feel is under represented in a global fund).


That's just how I'd look at it though, right or wrong

bostonerimus

If you cover your spending from company and state pension then you can afford to take risk with the rest of your money so your high equity percentage portfolio is ok with me. Emphasizing dividend paying stocks is a popular retirement income approach, you don't really need to do that, but it's a matter of personal preference whether you go for total return with more growth oriented funds or rely more on dividends.

The issue I have with the portfolio is it's high UK equity bias I would probably sell a lot of your UK equity income funds and buy a global equity index fund.

a_gasman

Thanks for the input, I have decided to reduce the UK equity bias and reinvest in the Legal and General International Index Trust .

ColdIron

The subject line in your initial post might benefit from a comma

aroominyork

a_gasman wrote: »

I look for some opinions or alternative funds that I could invest in, bearing in mind I do not need this income but consider it as a hobby with hopefully some profit /excitement and no i dont want bonds my pension is my safe money .

Well, if you want some excitement there has been a lot of discussion this week about Indian SMEs:
https://forums.moneysavingexpert.com/discussion/5901432/jupiter-india-in-freefall
https://forums.moneysavingexpert.com/discussion/5903397/can-funds-actually-go-bust

(If I did emojis I'd insert an evil one here.)

a_gasman

Yes it would can edit the post but not the title??

a_gasman

lol that's too much excitement for me

aroominyork

a_gasman wrote: »

Yes it would can edit the post but not the title??

Edit > Go Advanced, and you can change the title.

Prism

I can tell you how I split up my equities but in the end you need to pick an allocation that works for you.

I have three pools. Pool 1 is global large companies. I don't worry about regional allocation for these at all. I use 4 global funds but to be honest you could do it with 1 or 2. I have Fundsmith, Lindsell train GE, Scottish Mortgage and L&G health tracker.

Pool 2 is small/mid caps. I use several local country funds but you could also go for a single global fund (there aren't many to choose from of those)

Pool 3 is emerging markets. I have two funds for this including the currently very exciting Jupiter India. Again easily done with one.

I guess I technically have a Pool 4 local bias UK fund which is UK Microcap but I don't really count that one as its a small allocation.

The ratio between those pools is about 6:3:1 (global:mid/small:em). Foe fund choices you could easily go all passives/etfs or mix in some actives.

andy001

I wonder if OP may wish to reduce Equity portfolio to Bond etc as he is retired now?