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'Acc' vs 'Inc'
ggmf
Posts: 823 Forumite
My IFA selected SIPP contains 12 funds, 10 'Inc' funds and 2 'Acc' funds. All 12 funds fluctuate with the markets (as expected), with the 'Inc' funds paying dividends, at annual, biannual or quarterly periods, these dividends sit in the cash account of my SIPP, paying the platform and management fees on a monthly basis, and are slowly growing.
Dividends for the ‘Acc’ funds are paid back into the fund and increase the price. However, funds go down as well as up (hopefully!), so it’s difficult to determine or ‘see’ the increase in the fund price. At 61 with 1 year left probably, or at most 2 years to go before I wish to start drawdown, are there any ideas or thoughts as to when to switch from Accumulation funds to Income funds? Or do you just leave them as Accumulation funds until the time comes to sell, and hope you are selling them whilst their values are high?
Dividends for the ‘Acc’ funds are paid back into the fund and increase the price. However, funds go down as well as up (hopefully!), so it’s difficult to determine or ‘see’ the increase in the fund price. At 61 with 1 year left probably, or at most 2 years to go before I wish to start drawdown, are there any ideas or thoughts as to when to switch from Accumulation funds to Income funds? Or do you just leave them as Accumulation funds until the time comes to sell, and hope you are selling them whilst their values are high?
2 Separate arrays, 7 x JASolar 380w panels (2.66kWp) south facing, 4 x JASolar 380w panels (1.52kWp) east facing, 11 x Tigo optimizers & cloud, Growatt SPH5000, Growatt 6.5kWh Hybrid battery (Go-live 01/12/21) - Additional reporting via Solar Assistant.
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are there any ideas or thoughts as to when to switch from Accumulation funds to Income funds?
What investment strategy is the IFA using? You may not need income funds. Total return doesn't rely on yield.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks dunstonh, I've no idea, so I need to try and find out. Can I ask what "Total return doesn't rely on yield" means?2 Separate arrays, 7 x JASolar 380w panels (2.66kWp) south facing, 4 x JASolar 380w panels (1.52kWp) east facing, 11 x Tigo optimizers & cloud, Growatt SPH5000, Growatt 6.5kWh Hybrid battery (Go-live 01/12/21) - Additional reporting via Solar Assistant.0
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Total return = growth + income.0
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