Accumulation period.

The blog portfolio started on 09/09/22 with 100k of seed capital.

If that seed capital had been invested in VWRP

Your seed capital would be worth today 134k.

De-Accumulation.

Option one.

Take out an annuity paying around 5.5%

£7.37k pa.

You have to gift your capital to the provider, so not an option for me.

Also in the future if interest rates are low it could be under 3k pa, at least Dick Turpin had the decency to wear a mask.

Option two.

The 4 percent rule, you take out 4% from your fund every year, in case there is a market crash it’s recommended that u keep a cash buffer of three years but we will ignore it for this example.

£5.36k but you retain your cash, not guaranteed, to pass on to your nearest and dearest.

If interest rates are higher than 4%, you could buy government securities reducing your risk and have more time to spend your hard earned.

Option three.

Accrue your dividends, current fcast £9,120 pa, hopefully as dividends are increased the amount could rise, not guaranteed as the income could fall but you still have your capital to fall back on.

The longer you have to re-invest the dividends the larger your final income could be.

One option in the Accumulation stage would be to have a percentage in a tracker fund and the balance earning dividends and switch into ‘safer’ yielding trusts as you approach your retirement date. Past performance in no guarantee of future performance, especially as Goldman Sachs predicts an annual return of 3% for the next ten years.

Goldman Sachs expects the S&P 500 to return a measly 3% per annum because of high current valuations and the benchmark’s extreme concentration.

But as always it’s best to DYOR and even a bad plan is better than no plan.

At the end of each year review your plan and tweak it remembering history never repeats but it often rhymes. GL