It's time to start digging up those Squirrelled Nuts!!!!

michaels

Sea_Shell said:

Looking at the provisional figures, I think we'll just ignore the last 24 months, and compare to where we were at end of Sept 2020!!!

The huge rise in fund values, and the current fall back, is just skewing the figures. 

Sadly with prices up by about 12% since then you need to actually add 12% to the Sep 2020 value / deduct 12% from the current value to get a fair comparison  

Albermarle

michaels said:

Sea_Shell said:

Looking at the provisional figures, I think we'll just ignore the last 24 months, and compare to where we were at end of Sept 2020!!!

The huge rise in fund values, and the current fall back, is just skewing the figures. 

Sadly with prices up by about 12% since then you need to actually add 12% to the Sep 2020 value / deduct 12% from the current value to get a fair comparison  

Alternatively increase your projected future expenditure by 12% . When looking at long term planning I think it has the same effect. Just do not do both !

Sea_Shell

Albermarle said:

michaels said:

Sea_Shell said:

Looking at the provisional figures, I think we'll just ignore the last 24 months, and compare to where we were at end of Sept 2020!!!

The huge rise in fund values, and the current fall back, is just skewing the figures. 

Sadly with prices up by about 12% since then you need to actually add 12% to the Sep 2020 value / deduct 12% from the current value to get a fair comparison  

Alternatively increase your projected future expenditure by 12% . When looking at long term planning I think it has the same effect. Just do not do both !

That £31,700 of spends included £3000 of new boiler.  If you take that out that leaves £28,700, or £14,350 pa

This is still below our previously predicted "everyday" £15,000 spends.

Even if we upped that by 12% that gives £16,800.

3% "swr" of our current pot = £17,040

Or £16,920 if reducing pot by £4000 for further "capital expenditure" this year.

Will the markets drop further from here?  Who knows 😉

Clive_Woody

Sea_Shell said:

LHW99 said:

I unitised our (dividend based) portfolio in 2014, and the units are 3% down capital-wise since end Sept 2021. However, income earned per unit has increased by around 50% up to the end of 2021, and looks to be on target for a further increase in 2022. Interestingly although dividends were reduced in 2020, the amount received in the year was barely less than in 2019 (total and per unit). 

Sorry you've lost me, I don't understand any of that?

So glad you said that and it's not just me reaching for Google Translate to try and make sense of it 😄

LHW99

Clive_Woody said:

Sea_Shell said:

LHW99 said:

I unitised our (dividend based) portfolio in 2014, and the units are 3% down capital-wise since end Sept 2021. However, income earned per unit has increased by around 50% up to the end of 2021, and looks to be on target for a further increase in 2022. Interestingly although dividends were reduced in 2020, the amount received in the year was barely less than in 2019 (total and per unit). 

Sorry you've lost me, I don't understand any of that?

So glad you said that and it's not just me reaching for Google Translate to try and make sense of it 😄

Sorry - basically in 2014 I assumed my investments were like a unit trust, and assumed each "unit" was worth £100 Dividing the total £ value of the portfolio by 100 gave the number of "units" I had. As the value of the holdings were updated over time, with the number of "units" staying the same, the "value of a unit" would increase. When money was added I worked out how many new units I was buying, based on the current "unit value". When money is withfrawn, the number of "units" gets decreased accordingly.

It means that if I look at the increase in unit value compared to the original £100, each unit is now ~£150, and the increase only takes account of the actual changes in the stockmarket, and doesn't include how much new money went in (or out).

There have been threads on here about it, though I haven't seen one lately.

NoMore

LHW99 said:

Clive_Woody said:

Sea_Shell said:

LHW99 said:

I unitised our (dividend based) portfolio in 2014, and the units are 3% down capital-wise since end Sept 2021. However, income earned per unit has increased by around 50% up to the end of 2021, and looks to be on target for a further increase in 2022. Interestingly although dividends were reduced in 2020, the amount received in the year was barely less than in 2019 (total and per unit). 

Sorry you've lost me, I don't understand any of that?

So glad you said that and it's not just me reaching for Google Translate to try and make sense of it 😄

Sorry - basically in 2014 I assumed my investments were like a unit trust, and assumed each "unit" was worth £100 Dividing the total £ value of the portfolio by 100 gave the number of "units" I had. As the value of the holdings were updated over time, with the number of "units" staying the same, the "value of a unit" would increase. When money was added I worked out how many new units I was buying, based on the current "unit value". When money is withfrawn, the number of "units" gets decreased accordingly.

It means that if I look at the increase in unit value compared to the original £100, each unit is now ~£150, and the increase only takes account of the actual changes in the stockmarket, and doesn't include how much new money went in (or out).

There have been threads on here about it, though I haven't seen one lately.

so this: How to unitize your portfolio - Monevator 

Sea_Shell

I think I get it.

Would you include all your cash when you unitise your portfolio? Or just investments?

So take everything and divide it by 100?

LHW99

I included cash in our SIPPS and S&S ISA's, but not cash in savings accounts - that only increases according to the interest rates on the accounts, so is predictable, and IMO not the same as the capital increase / decrease on investments. Cash in SIPPS etc was there either as recently received dividend income or as cash payments, that was waiting to be invested (or withdrawn). Not sure if that's how Monevator does it, but it seemed most logical to me.

Yes, I took the total of all the investment-based accounts, and divided by 100, so if the total was £120,000 that would be 1200 x £100 units. If I didn't add / withdraw any money and the total investments went up to £180,000 then the 1200 units would then each be worth £180,000 / 1200 = £150 per unit (easy numbers as illustration)

Sea_Shell

Great if that works for you.

I think I'll stick with my spreadsheet.

It lists what's what each month end, including a column for monthly spend.

It shows where we were against where we are.

jimi_man

Sea_Shell said:

Albermarle said:

michaels said:

Sea_Shell said:

Looking at the provisional figures, I think we'll just ignore the last 24 months, and compare to where we were at end of Sept 2020!!!

The huge rise in fund values, and the current fall back, is just skewing the figures. 

Sadly with prices up by about 12% since then you need to actually add 12% to the Sep 2020 value / deduct 12% from the current value to get a fair comparison  

Alternatively increase your projected future expenditure by 12% . When looking at long term planning I think it has the same effect. Just do not do both !

That £31,700 of spends included £3000 of new boiler.  If you take that out that leaves £28,700, or £14,350 pa

This is still below our previously predicted "everyday" £15,000 spends.

Even if we upped that by 12% that gives £16,800.

3% "swr" of our current pot = £17,040

Or £16,920 if reducing pot by £4000 for further "capital expenditure" this year.

Will the markets drop further from here?  Who knows 😉

I suppose it depends if the £3000 (new boiler) is an absolutely exceptional one off cost. As you’re spending a similar amount on a bathroom and then next year/year after, there is likely to be something else. So maybe it’s wise to include that amount in your budget? If you don’t spend it then you’ll be under. Personally I’d rather budget like that instead of having everything down to the wire as you have. I accept that everyone is different so please don’t take that as criticism!