Assess my ISA "income and a bit of growth" portfolio

Stoodles

This is my plan for my ISA in retirement.  The freezing of Personal Allowances has led me to focus more on taking an income from ISAs, which I'd previously expected to use for ad-hoc additional expenses.
I'm aspiring to take about 4% yield.

I'm looking at 
Global Income:-
Fidelity Global Dividend         10%

UK Equity income:-
Man GLG Income                               20%
Vanguard FTSE UK Equity Income    15%

Bonds:-
Royal London Global Bond Opportunities     20%
Royal London Short Term Money Mkt Inc        5%

Mixed Income:-
Artemis Monthly Distribution      15%

Global Growth:-
HSBC Global Strategy Adventurous Inc     15%


My major doubt about this portfolio is the volatility of the two UK equity income funds, but I think that is acceptable as I'm planning this as a long term portfolio, and my ISA is less than a third of total investments. I also intend to let it run for a year generating dividends to be paid into a Money Market fund so there can be some smoothing after that.

Bostonerimus1

What are your costs for this portfolio and how do you intend to manage it? Will you be rebalancing or following a rising equity allocation path? where and when will you take the income? Will you just sweep all interest and dividends into your MM account?

Stoodles

I plan annual rebalancing. That's why I have kept the growth element - I hope it will provide enough to keep the income funds in line with reasonable inflation.  I'm accepting that if (when) we have a period of high inflation this bit of my overall portfolio could drop in real terms.  Since more than two thirds of my income is protected against inflation I'm happy with that.

Yes I plan to sweep everything into the MM account, then sell from it quarterly to meet monthly drawings.

Costs. 
 I'm with II, so I pay a flat £12pcm,  but I run with just enough income producing funds in my Trading account to cover that over the year. 
I can make all the transactions needed to rebalance, sweep, sell and draw free utilising my one free trade per month and free regular investing.

I've tried to go for funds with lower charges - they vary from .1% to .9%, and I calculate that they come out at .54% pa

Linton

Stoodles said:

This is my plan for my ISA in retirement.  The freezing of Personal Allowances has led me to focus more on taking an income from ISAs, which I'd previously expected to use for ad-hoc additional expenses.
I'm aspiring to take about 4% yield.

I'm looking at 
Global Income:-
Fidelity Global Dividend         10%

UK Equity income:-
Man GLG Income                               20%
Vanguard FTSE UK Equity Income    15%

Bonds:-
Royal London Global Bond Opportunities     20%
Royal London Short Term Money Mkt Inc        5%

Mixed Income:-
Artemis Monthly Distribution      15%

Global Growth:-
HSBC Global Strategy Adventurous Inc     15%


My major doubt about this portfolio is the volatility of the two UK equity income funds, but I think that is acceptable as I'm planning this as a long term portfolio, and my ISA is less than a third of total investments. I also intend to let it run for a year generating dividends to be paid into a Money Market fund so there can be some smoothing after that.

You say that your ISA is less than 1/3 of your investments. So that suggests your income prtfolio may not be the primary source of your investrment income  One really needs to see the overall picture.

Why are you concerned about the volatility of the UK equity funds?  Surely all that matters is that the funds continues to produce a steady income, the capital value can be largely ignored.  

About 25% of my total retirement ongoing income comes from a focussed but highly diversified income portfolio held in an ISA.  Some points from my experience which hopefully may be useful....

 - II can automatically pay out dividends/interest directly into the linked current account as they are received which removes the need for any intervention apart from an annual review and rebalance. I dont know whether other platforms priovide this option.

 - My target income is 6% which means that it is unlikely to provide the growth required to keep up with inflation.  So the portfolio needs to be increased over time by gains from growth funds, which in my case are held in a SIPP.  Splitting in this way minimises the tax on income for covering expenditure, especially important if one is close to being a higher rate tax payer. 

 - there are plenty of other options than the UK for equity income.  In particular the Far East provides useful diversification.

ColdIron

A quick look shows you have quite a few funds that pay dividends monthly. Was this part of your selection criteria? If you are taking quarterly income there isn't much point and you could cast your net more widely