Stir-up Sunday started back in Victorian times, and was a tradition where families would come together to get their fruit puddings stirred up, steamed and stored ahead of Christmas. Each member of the family would take a turn to give all the ingredients a good mix, whilst making a wish and help tick off the first task of the festive season.
The portfolio was started because my son who is a huge climate warrior wanted to move his pension and I suggested a portfolio of Renewable Trusts.
He decided to move his pension elsewhere but I have maintained the portfolio, updating it once or twice a month. I have copied the performance in the posts below, so you can see how it all plays out, warts and all.
Note the loss during the Covid crash, which turned out to be a plus for the portfolio because as the price falls the yield rises. One traders disaster is another’s opportunity.
Low on chart £85,215.00 and the current price £146,282.00. The portfolio value is of no interest as the plan is to use the dividend stream as an ‘annuity’, unless an unexpected event happens and then you still have access to your cash, which you wouldn’t if you bought an annuity.
The current blended yield is around 10% which would provide an ‘annuity’ next year of around 15% on seed capital of 100k.
The holy grail of investing of having a share in your Snowball that provides income but sits in your portfolio at a zero, zilch, cost.
ALL TRANSACTIONS
NESF, FSFL. Year 4 in achieving the Holy Grail of Investing.
Although when I predict the future I’m normally wrong, I expect there will be some Trusts will be absorbed by others.
If you look at the figure for RGL in part 3 you will see the amount of loss for the overall position is a lot less but it’s very unlikely the cash lost will ever be completely recovered but you would have also earned some more cash which has been re-invested from their paid dividends.
Five ways to generate a dependable monthly income in retirement
From doling out dividends to maximising interest income – here’s how you can keep the cash coming in.
Esther Shaw
06 November 2025
Credit: Getty Images/Getty Images
While many of us spend much of our working lives looking forward to retirement, working out how to make our finances stretch for the rest of our life – perhaps until 100 – can be stressful.
“For many people, moving from a world of receiving a regular monthly income to one where you are managing a finite retirement pot can feel very unsettling,” said Harry Donoghue, chartered wealth manager at Tideway Wealth.
The good news is, there are ways to maintain a monthly income – beyond any four-weekly state pension payments, which we know don’t go very far. Recreating your own payday can help make regular bills more manageable and reduce the chances of overspending from your pot. Here, Telegraph Money outlines some of your options.
Investing in dividend-paying shares or funds can provide a steady stream of income, often paid quarterly or biannually.
“These payments can help mimic a salary, especially if you build a diversified portfolio across sectors and geographies which pay dividends on different months,” said David Little, chartered financial planner at Evelyn Partners. “It’s important to balance yield with quality. You need to look for companies with strong cashflow and a history of consistent payouts.”
Just remember, dividend payouts can be cut and are never guaranteed – so diversification is key.
You’ll also need to consider tax when drawing income from your investments. Dividend income is tax-free up to £500, and is then taxed at your marginal tax rate – 8.75pc for basic-rate taxpayers, 33.75pc for the higher rate, and 39.35pc if you pay additional-rate tax.
However, if your investments are held in an Isa, you won’t need to pay tax on these returns.
Mr Little added: “Investment Isas offer a tax-free income stream and should be utilised as fully as possible during your working years – helping to build a strong foundation for retirement income.”
These products, which convert a pension fund into a guaranteed income for life, or for a fixed term, can offer both simplicity and peace of mind.
Becky O’Connor, director of public affairs at PensionBee, said: “Annuities are the traditional income option and involve ‘buying’ an income that will last for a set period – or until you die – with some or all of your pension fund. The stability they give is practically unparalleled.”
If this sounds appealing, you’ll be pleased to know that with interest rates rising, annuities are making a comeback.
According to the latest figures from Standard Life, average rates reached 7.65pc in September this year, a year-on-year increase of nearly 10pc.
Pete Cowell, head of annuities at Standard Life, said: “Rates remain strong and continue to offer valuable income certainty for retirees.”
For those worrying about losing the rhythm of a monthly salary when they retire, he added that annuities can offer a really practical solution.
“They provide a guaranteed income stream that can feel just like payday, long after your working life ends,” he said. “This income can be monthly, quarterly, or annually, and once set up, the payments land in your bank account automatically, just like a salary.” While much of this may sound appealing, annuities won’t be right for everyone.
“One big trade-off with opting to purchase an annuity is that you might not get as high an income as might be possible through continuing to leave your pot invested,” said Ms O’Connor.
The key, as with any retirement planning decision, is to research your options carefully. Take the time to seek professional advice where necessary, to help you make an informed choice.
Consider rental income In the past, investing in buy-to-let has been a popular option with retirees, as it can provide reliable monthly income through rental payments. Better still, this often keeps pace with inflation.
If you are fortunate enough to already own a buy-to-let house or flat, this can potentially provide a natural retirement income stream.
The problem is, in recent years, buy-to-let has fallen out of favour somewhat as a result of changes to tax treatment (such as the reduction of mortgage interest relief) as well as a tougher regulatory regime for landlords on housing standards. This will get even tougher when the Renters’ Rights Act comes into force.
“While rental income can be a powerful tool, it may be less passive than it sounds on the face of it, depending on the quality of tenants and maintenance costs. The benefits also depend on whether your rental property is mortgaged and if it is, what happens to interest rates,” said Ms O’Connor.
As a landlord, you need to be prepared to build in a sufficient (and realistic) buffer for ongoing costs from maintenance, void periods, letting agency fees and tax when calculating the likely return.
Given all of this, experts suggest that for some retirees, selling an existing portfolio and using property equity elsewhere might actually be a better route than active letting.
Mr Little said: “From a taxation point of view, buy-to-let offers very little in the way of tax efficiency – it’s arguably one of the most tax-inefficient asset classes to hold.”
Once again, you need to research carefully, and consider speaking to a tax specialist to work out what’s best for you.
Give yourself ‘fixed paydays’ from pension drawdown Rather than ad-hoc withdrawals, you can, as a retiree, set up regular monthly or quarterly payments from your pension drawdown pot. By doing this, you can effectively create a personal, flexible payday.
While arriving at a figure that covers the spending you need can help keep a handle on how quickly your account reduces, this arrangement still offers retirees the flexibility to alter the income amounts when they need to – after all, there will always be the odd “out of budget” item that crops up.
“But to the best of your ability, try to stick to these regular and set withdrawals,” added Ms O’Connor. “This will give you a sense of control and peace that you are on track for a sustainable income.”
It may take a little trial and error to find the right amount for you; our pension drawdown calculator can help you make sure you don’t go in too high.
Organise regular savings interest If you’re searching for a modest but predictable income stream, you might want to seek out one of the savings accounts which offer the option to pay out savings interest – as opposed to compounding it.
NS&I’s Guaranteed Income Bonds are an example of accounts that offer this, with interest paid monthly at 3.97pc on savings between £500-£1m. Based on a savings balance of £100,000, you could expect a regular interest payment of around £330 a month.
However, you’ll need to tread carefully if you rely on this for retirement income. Firstly, you’re relying on savings providers offering an interest rate you can live off.
Mr Little said: “While interest rates have had a resurgence in recent years, they’re still unlikely to meet full income needs – or keep pace with longer-term inflation.”
You’ll also need to factor in the issue that your initial lump sum of savings won’t grow at all while you’re spending the interest, meaning its value will be eroded by inflation over time.
Make sure you have a plan The key to managing your finances successfully during your later years is having a plan.
Mr Donoghue said: “Rather than jumping straight into products or deciding withdrawals on the fly, take a step back and work out what you actually need to spend to enjoy the retirement you want.”
Expenditure does not necessarily have to stay consistent throughout retirement. It is very common for people to spend more in the early years on things like travel and hobbies, before naturally slowing down later on.
Mr Little said: “The key to successful retirement planning lies in blending income sources to match your lifestyle, tax position, and risk tolerance. By combining multiple, small, income sources, retirees can structure a single, tax-efficient, monthly income that closely mirrors the consistency of a salary – without the full punitive impact of income tax.”
Canada Life figures show the 65-year-old with a £100,000 pension pot could buy an annuity linked to the retail price index (RPI) that would generate a starting annual income of £3,896. That’s up from £2,195 in the New Year following a 77% spike in rates this year. Oct 22.
That could be what you could receive, could be more or could be less. One huge gamble so it’s not for this blog.
TOTAL RETURN
The 4% Rule.
Depends on luck when you retire, what Mr. Market would offer you.
If you buy an S&P tracker and can choose when to sell you will not lose any of your money, again down to luck when you want to retire.
One option would be to transfer some of you hard earned into Bonds but as recent history proves that can be one way of ruining your retirement.
Ditto Pension lifestyling.
You have no way of planning as the final amount is the known unknown.
DIVIDEND RE-INVESTING.
You can plan ahead, although to arrive at your final destination, you would need to monitor your plan and tweak it as you journey along.
Note how the largest gains are made in the final years, that’s why Lifestyling can be such a bad choice.
On a 100k investment income of 53%, you need to allow for inflation.
The Snowball has a TR comparison share VWRP.
The current comparisons
The Snowball income for 2025 £11,800. The fcast for 2026 is £9,175.57
The ten year plan is currently 2 years ahead of the final total thanks in part to the largesse of Mr. Market.
Comparison share VWRP current value £149,299.00 Not too shabby, when the markets correct you could possible include some for your Snowball.
Using the 4% rule it would currently provide an income of £5,971.00
It is assumed the gap between the two options, will continue to widen.
Your Snowball, should reflect on your risk tolerance, which may depend upon how much capital you can save and the years to when you want to spend your dividends instead of re-investing.
My research shown below starts with shares from the Watch List currently yielding 8% and above. Currently no ETF’s are included as lots of Trusts are trading at a discount to NAV.
To simplify the search, current Trusts that are not trading at a discount are ‘discounted’. Another layer of worry are those trusts that are not quoted in sterling. The new list would be
SOHO and SEIT deleted as their ship sailed a good while ago.
AIRE deleted as it’s difficult to trade.
SERE deleted as there is a tax liability amount un-resolved.
Before trading you need to assess the risk of the dividend being drastically altered and then it’s.
Dividends can be more reliable than share prices as they’re driven by the companies performance itself and not by the whim of investors.
Hello! This is kind of off topic but I need some help from an established blog. Is it tough to set up your own blog? I’m not very technical but I can figure things out pretty quick. I’m thinking about setting up my own but I’m not sure where to start. Do you have any points or suggestions? Thank you
The blog uses WordPress thru Fasthosts, no coding required although there is a small monthly charge. Have fun.
Do you ever feel “the curse” of investing at exactly the wrong point? Like your investing is too late, at the wrong time, or maybe that you’re just unlucky?
Well meet Bob – the World’s Worst Market Timer. Bob began his working career in 1970 at age 22 and was a diligent saver and planner.
His plan was to save $2,000 a year during the 1970’s, then increase his savings by $2,000 each decade. In other words $2,000/year in the 70’s, $4,000/yr in the 80’s, $6,000/year in the 90’s… you get the picture.
Bob started in 1970 with $2,000, added $2,000 in ’71 and ’72, then decided to take the plunge and invest in the S&P 500 at the end of 1972. (Time out: there were no index funds in 1972, but come along with me for illustration purposes).
Now in 1973 – 74, the S&P dropped by nearly 50%. Bob had invested his life savings at the peak, just before it fell in half ! Bob was bummed, but Bob had a plan and he was sticking to it. You see Bob never sold his shares. He didn’t want to be wrong twice by investing at the peak and then selling when prices were low. Smart move Bob !
So Bob kept saving $2k/year in the 70’s and then $4k/yr in the 80’s. But he was feeling the sting of his last investment and did not feel comfortable adding to his fund until he had seen the markets rise a fair amount. In August of 1987 Bob decided to put 15 years of his savings to work. Seriously Bob?
This time the market fell more than 30% right after Bob invested. Bob, amazed at his investing prowess, did not sell.
After the 1987 crash, Bob was really planning to wait it out. In the late 1990s everything was on fire. The internet was unbelievable new technology and stocks were flying high. By 1999 Bob had accumulated $68,000 from saving each year. A firm believer that the Y2K bug was boloney, Bob invested his cash in December 1999 just before a 50% decline that lasted until 2002.
The next buy decision in October 2007 would be one more big investment before he would retire. He had saved up $64,000 since 2000, deciding to invest this right before the financial crisis that saw Bob experience another 50% decline. Monkey’s throwing darts were probably better at investing than Bob.
Distraught and disheartened, Bob continued to save each year and accumulated another $40k. He kept his investments in the market until he retired at the end of 2013.
So let’s recap: Bob is definitely has “bad timing”, only investing at market peaks just before severe market declines. Here are the purchase dates, subsequent declines and the amounts Bob invested:
Fortunately Bob was a good saver, and actually a good investor. You see once he made his investment he considered it to be a long-term commitment and never sold his shares. Even the Bear Market of the 70’s, Black Monday in 1987, the Tech Bubble or the Financial Crisis did not cause him to sell or “get out” of the market.
He never sold a single share. So how did he do?
Bob almost fell out of his chair when his advisor told him he was a millionaire! Even though Bob made every single investment at the peak, he still ended up with $1.1M! How you might ask? Bob actually had what we would call “Good Investor Behavior”.
First, Bob was a diligent and consistent saver. He never waivered from his savings plan (recall $2k/year in the 70’s, $4k in the 80’s, $6k in the 90’s, $8k in the 2000’s, $10k in the 2010’s until his retirement in 2013 at age 65).
Second, Bob allowed his investments to compound through the decades, never selling out of the market over his +40 years of investing – his working career.
During that time Bob endured tremendous psychological toil from seeing huge losses accumulate right after he made each investment. But Bob had a long-term perspective and was willing to stick with his savings and investment plan – even if his timing was “a bit off”. He saved and kept his head down.
Certainly you realize Bob is an illustration. We would never advise only investing in a single strategy, let alone a single investment like an index fund. If Bob had invested systematically, the same amount each month, increasing his savings like he did he would have ended up with even more money, (over $2.3M) – but that would not have been Bob, the Worlds Worst Market Timer.
So what are the lessons?
If you are going to invest, invest with an optimistic outlook. Long-Term thinking often rewards the optimist. Unless you think the world is coming to an end, optimists are typically rewarded.
Temporary, short-term losses are part of the deal when you invest. How you react to those losses will be one of the biggest determinants of your investment performance.
The biggest factor in investment success is savings. How much you save, and how methodically you save has a much bigger impact than investment return. Get these three things right along with a disciplined investment strategy and you should do well. Even Bob did well. Nice work Bob.
As part of your Snowball, add a tracker, add funds from your dividends when markets crash
Near-zero savings ? Start building wealth with Warren Buffett’s golden method
Learning these Warren Buffett tips can help investors potentially become significantly richer in the long run, especially when starting early.
Posted by Zaven Boyrazian, CFA
Image source: The Motley Fool
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.
The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.
Warren Buffett is one of the most successful stock market investors in the world, with a net worth of almost $150bn. That’s despite starting out with only around $2,000.
Throughout this journey, he’s been quite a vocal teacher, offering powerful advice over the years to guide the next generation of investors. And while the economic landscape’s very different in 2025, Buffett’s method remains a proven strategy for building long-term wealth, even when starting with little-to-no savings.
Focus on the business
In the short term, the stock market can feel a bit like a casino with prices jumping up and down almost randomly. But in the long run, shares ultimately move in the same direction as the underlying business.
So long as the company’s able to grow and create value, the share price will eventually follow. Yet that rarely happens overnight. That’s why Buffett once said: “What we really want to do is buy businesses that we will be happy to hold forever”. And in order to do this confidently, investors need to dive deep into research, or as Buffett puts it, “you have to understand the business”.
Depending on the company, the process can be a lengthy one. And it’s also why the ‘Oracle of Omaha’ strategically only looks at stocks within his circle of competence. But even then, when hunting for the best businesses in the world, Buffett admitted, “we can’t find a lot of them”.
As someone who’s been analysing stocks for over a decade, following these core principles, my research often ends with a ‘not good enough’ conclusion. And it’s why Buffett also advised that investors who lack the stamina to invest in this way should opt for passive index funds.
But “for those willing to put in the required effort”,stock picking can open the door to tremendous long-term wealth.
Practising what he preaches
Perhaps a perfect example to consider is Coca-Cola (NYSE:KO). Buffett first bought its shares in 1988, recognising the soft-drink company’s powerful global brand that granted the business an enduring competitive advantage.
Since then, he’s never sold a single share. And with earnings expanding as the firm entered and captured new markets, dividends have been hiked consistently. The result ? His initial investment’s now generating a yield close to 60% a year !
Fast forward to 2025, and Coca-Cola continues to demonstrate the world-class traits Buffett loves to see. Management has been adapting its product range to shifting consumer tastes, most notably with its Coke Zero variant. And with the group’s digital transformation offering new efficiency opportunities, Buffett continues to hold his shares, enjoying consistently and reliable dividends.
Does that make Coca-Cola a no-brainer buy in 2025? Not necessarily. Having reached a $290bn market-cap and worldwide dominant status within the beverages industry, Coke’s future growth is likely to be less impressive moving forward. And while management’s diversifying the product portfolio to tap into new opportunities, the group nonetheless faces rising pressure for both its growth and profit margins.
