
One. Make a plan and stick to it thru thick and thin, as there will be plenty of thin.
Two. Set a figure and write it down and how u intend to get to the figure.
Three. Accept that the amount invested may fall as u re-invest your dividends.
Four. Have some cash in your ‘safest’ position as u wait for the next market crash.
Five. Watch for the news from your Trust about their next dividend and their forecast for the next year.
One. To buy a portfolio of higher yielding Investment Trusts to provide a yield of 7% as this doubles your income in ten years.
Two. The income after ten years will be 14-16k on a starting portfolio of 100k. The amount is not in question although depending on the market the time scale could slip.
Three. As u don’t want to kill the goose that lays the golden eggs* u never intend to sell any of your Trusts. Over time the amount invested will start to rise as compound interest starts to make a big difference to your portfolio.
Four. It may mean having an investment in a Government gilt pair traded with a higher yielder to maintain a blended yield of 7%.
Five. If one of your Trusts drastically changes their dividend policy, the Trust must be sold.
* In an emergency one of your Trusts could be sold the equivalent of withdrawing x amount of dividends years in advance.
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