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

Suffolk_lass

crossed post, sorry

Crabby

Sea_Shell said:

Hi there, it appears my thread seems to have turned into the Snagging thread!!!

Can we leave it there please.  

Thankyou.

4weeks into our Spain/Portugal roadtrip, we're spending about a third less than I budgeted for. 

atush

Well done you

Sea_Shell

Not much to report here.   Only news is the influx of emails telling us that our interest rates are being reduced left right and centre!!    We're running down our cash anyway, until DH is able to start to drawdown on his DC pensions.    

We have a few cash accounts maturing between now and April, so we'll have a re-jig then and maybe put some more into our "safer" ISA fund.   Its the 7IM AAP Balanced C Acc.   It doesn't set the world on fire with its performance (current annualised 4.6%), but then it seems quite steady when the market has it's blips too.

Keeping fit and healthy, but hardly the best weather recently for running or walking...that wind!!!    I have no plans for today, so might just give myself a "spa" day, with my best lotions and potions, gentle stretch routine and do a gel nail manicure.   Chilli con carne with a glass of red is on the menu for lunch today.   Hard life!!

Suffolk_lass

Have you considered moving from ACC to INC funds now you are not working? I appreciate you have cash elsewhere for the timebeing. I don't know if you delay selling the capital investments to get the income - I know I do, so swapping to INC might help

Sea_Shell

Suffolk_lass said:

Have you considered moving from ACC to INC funds now you are not working? I appreciate you have cash elsewhere for the timebeing. I don't know if you delay selling the capital investments to get the income - I know I do, so swapping to INC might help

TBH we've not really considered that.  If we stay ACC, surely if we want to take any "income" from it, we just ask to withdraw £XX from the fund and everything else stays invested.

What benefits does going INC have within an ISA?

We're via Fidelity (Cavendish) so we pay flat fees, not per transaction, so we can treat it as an (almost) instant access cash account.

Suffolk_lass

I think in my S&S ISA (Charles Stanley Direct Platform) the INC (dividend) on some of my shares and funds gets moved to a cash account that I can just transfer or allow to accumulate there. Obviously it is not earning anything else from there (whereas ACC is earning/reducing with the susceptibly of the market). I think I also pay a transaction fee if I reduce my share holding by selling to "drawdown". I am trying to better understand how it works so I might have got this wrong - I thought you would know, hence my question. I'm sure some of your other readers would know for sure. I also don't know if I would incur transaction fees if I swap any ACC to INC - I do seem to pay a lot but maybe I just made my portfolio too diverse, with relatively few shares of anything, because I started so late.

Audaxer

Sea_Shell said:

Suffolk_lass said:

Have you considered moving from ACC to INC funds now you are not working? I appreciate you have cash elsewhere for the timebeing. I don't know if you delay selling the capital investments to get the income - I know I do, so swapping to INC might help

TBH we've not really considered that.  If we stay ACC, surely if we want to take any "income" from it, we just ask to withdraw £XX from the fund and everything else stays invested.

What benefits does going INC have within an ISA?

We're via Fidelity (Cavendish) so we pay flat fees, not per transaction, so we can treat it as an (almost) instant access cash account.

I think INC funds are better in retirement if you are wanting to take monthly income. With ACC funds you have more of a decision to take as to when to sell for income. With a portfolio of INC funds you can just let the monthly dividends go into the cash account in the S&S ISA and draw out a fixed amount per month, or a variable amount if you wish. If the dividends build up to more than you need you can reinvest some. As well as an income portfolio in an S&S ISA I also have a separate S&S ISA with VLS funds. I have taken my first small percentage of income from the VLS funds last month, but it was more of a decision as whether it was the best time to sell and how much to sell.

Sea_Shell

Most of our income needs will be covered by DH drawing down his DC pensions, up to his PA (plus my transferred PA %).  We'll also keep 3-5 years of cash too, so we probably won't need to make regular withdrawals from our ISAs.

We'll make "which money pot to spend" decisions on the hoof, dependant on the market conditions at the time, so some months we might spend "cash" and reinvest DHs pension payouts.

So I think ACC will still work best for us.

Sea_Shell

What a week it's been so far.   Market wobbles, COVID-19 and now snow!!!    Batten down the hatches, pull up the drawbridge!!

We were considering booking the Canaries for March/April, but we won't be now.   Yes, I know the risk is small, and we're not so much worried about catching the virus (or any other bug - been there done that!!), but more the chance of the hotel being locked down, and having to be confined to our rooms and then possibly quarantined if you ever get back to the UK!!!    Over-reaction, maybe, but why risk it.   It's only a holiday.   The Canaries will still be there once this all blows over (hopefully), assuming there is a travel industry left!!

ISA's down £7000 so far this week, and I've not yet looked at the pension figures.  (month end job).    Not too worried as we have a large cash buffer (£98k), which we were recently thinking was too big, but now.....mmm, maybe not!!

We did a big shop on Monday, and yes, I did buy that extra bag of pasta, rice, cereal and some UHT milk, but I wouldn't call it "hoarding" or "panic buying", just want to know that we could survive not shopping for a couple of weeks, if push really comes to shove.  

Anyway, hopefully this will all blow over, and we won't need to "do an Italy", but until then, I think a little preparedness doesn't hurt.

As for the weather...It can do one!!!

Happy Thursday everyone!!    Take care out there!!