Investment Trusts / REITS for retirement income.

Thrugelmir

Alexland said:

Thrugelmir said:

Orsted was an world oil company not that long ago............

Are you really expecting much from the big oil companies listed on the UK market? If they can change into something else then yes they might become investable again but for now it mostly seems to be greenwashing and buying into their structural problems. No thanks.

If it was Total you have no hestitation investing?  As the company is French rather than British. 

green_man

I use an ISA and ITs to provide supplementary retirement income, currently producing just over £7k on £180k capital.  It is a useful tax free income source (I currently withdraw £500 a month).  There are hundreds of options to choice from.

check this thread by John Ro to get some ideas of funds that could be included, then research and pick your favourites. Just because you are picking an income portfolio it doesn’t mean you shouldn’t diversify.

 https://forums.moneysavingexpert.com/discussion/4662291/monthly-income/p1

Thrugelmir

green_man said:

I use an ISA and ITs to provide supplementary retirement income, currently producing just over £7k on £180k capital.  It is a useful tax free income source (I currently withdraw £500 a month).  There are hundreds of options to choice from.

check this thread by John Ro to get some ideas of funds that could be included, then research and pick your favourites. Just because you are picking an income portfolio it doesn’t mean you shouldn’t diversify.

 https://forums.moneysavingexpert.com/discussion/4662291/monthly-income/p1

Much can change in 9 months.  IT's discount/premiums constantly gyrate along with their market prices. 

AsifM068

dunstonh said:

I am hoping to achieve a dividend yield of around 5% with some capital growth with funds to be held in an ISA.

Any reason why you have selected the ISA wrapper over the pension wrapper? (pension being best for most people - although not all)

I am yet to look into pension wrappers but thank you for flagging this...more reading looks like for me!

Thrugelmir

AsifM068 said:

I am hoping to achieve a dividend yield of around 5% with some capital growth 

Using historical data unless you are prepared to reinvest at least part of the income. Then your total return may fall short once inflation is factored into account.  Shares that offer 5%+ returns do so for a reason.  

AsifM068

My sums do indicate that I may fall short. The potential plan is to transfer my ISA funds from the Vanguard Global Tracker when I'm 57/58 to an investment trust and re-invest all dividends until I'm 60 and then start taking the income as cash. Does this sound feasible / sensible?

AsifM068

Of all the IT's cited, has anyone heard of the Merchant's Trust for I have read that they are on AIC's list as a dividend aristocrat and yield 5%?

Audaxer

AsifM068 said:

Of all the IT's cited, has anyone heard of the Merchant's Trust for I have read that they are on AIC's list as a dividend aristocrat and yield 5%?

I have a small holding in Merchants. It can be quite volatile as it lost more than most at the start a Covid, but has recovered well over the last year. I am retired with some income funds and other ITs such as CTY and MYI, but recently have added in more growth. To get a rising income and capital growth I think a more realistic overall yield would be in the region of 3.5%. 

Thrugelmir

AsifM068 said:

Of all the IT's cited, has anyone heard of the Merchant's Trust for I have read that they are on AIC's list as a dividend aristocrat and yield 5%?

You need to dig deeper into the Trust's share holdings and form your own opinion. Also quantify how much has been drawn from reserves to sustain the dividend over the years. As it's not just a question of looking for yield but whether you agree with the fund managers style. Individual companies can very quickly underperform financially or fall of favour with investors. 

AsifM068

Audaxer said:

AsifM068 said:

Of all the IT's cited, has anyone heard of the Merchant's Trust for I have read that they are on AIC's list as a dividend aristocrat and yield 5%?

I have a small holding in Merchants. It can be quite volatile as it lost more than most at the start a Covid, but has recovered well over the last year. I am retired with some income funds and other ITs such as CTY and MYI, but recently have added in more growth. To get a rising income and capital growth I think a more realistic overall yield would be in the region of 3.5%. 

Thank you for your thoughts Audaxer