Total Return Timeframes

stephenadarglas

A question for the people who use total return as a method of producing income however anyone can chip in.

When do you actually realise your returns (timeframe)?

Prism

Whenever you need it. Some people might sell a percentage once per year and then from that cash allocate some each month. Others might sell each quarter or even month.

TBC15

Every April.

Linton

I usually release capital from our SIPPs once a year to use up spare basic rate tax bands as part of rebalancing.  The SIPP cash is then rebalanced into cash held in PBs and our current accounts or reinvested in S&S ISAs.  Under normal circumstances I would never take cash directly from the SIPPs for immediate use.  We have enough cash reserves to last several years, including known one-off large expenses.

At the moment, thanks to the limitations imposed by Covid, about 80% of our income for normal expenditure comes from guaranteed pensions.  The remaining 20% is dividends and bond interest from an S&S ISA. 

Aminatidi

I'd imagine different people do different things.

I often think of Terry Smith of Fundsmith who is a big advocate of investing for total return who has setup the direct Fundsmith platform so you can do a monthly withdrawal.

stephenadarglas

Many thanks for your input guys.  Much appreciated