Switching from accumulation to income
Posted: November 29th, 2016, 1:50 pm
Hope this is a suitable place for this question - there doesn't yet seem to be a dedicated OEIC board AFAICS.
As mentioned on another thread I'm planning on retiring in the near future. Among my investents is a Scottish Widows ISA Accumulation OEIC. It's done ok in the last few years, pretty much matching the FT100 Total return index. I now want to investigate how to switch it (or a replacement) from accumulation to income producing while remaining invested. But it's rather unclear how I can go about this.
I was speaking to Scottish Widows about something else the other day and asked about it - the chap basically told me that I should sell bits of the account to produce cash. That struck me as a pretty clumsy way to go about things, especially as that account has no online facility so I'd have to do it by letter.
I was looking through their various information sheets about income-based OEICs and found the whole subject very opaque - everything seemed to talk about values rather than likely income and the graphs I was able to generate seemed to show that values of income generating funds were often negative when income wasn't reinvested. I then did a search and found this article abotu how most fund platforms make it difficult for you to convert to income http://citywire.co.uk/money/fund-platforms-stopping-you-converting-to-income/a948114.
Does anyone have any insights into this situation and can suggest the best approach? Is it perhaps best to wind the whole thing up completely and transfer to some other form of investment that retains the ISA wrapper but is income-based?
Thanks for any advice
Spiderbill
As mentioned on another thread I'm planning on retiring in the near future. Among my investents is a Scottish Widows ISA Accumulation OEIC. It's done ok in the last few years, pretty much matching the FT100 Total return index. I now want to investigate how to switch it (or a replacement) from accumulation to income producing while remaining invested. But it's rather unclear how I can go about this.
I was speaking to Scottish Widows about something else the other day and asked about it - the chap basically told me that I should sell bits of the account to produce cash. That struck me as a pretty clumsy way to go about things, especially as that account has no online facility so I'd have to do it by letter.
I was looking through their various information sheets about income-based OEICs and found the whole subject very opaque - everything seemed to talk about values rather than likely income and the graphs I was able to generate seemed to show that values of income generating funds were often negative when income wasn't reinvested. I then did a search and found this article abotu how most fund platforms make it difficult for you to convert to income http://citywire.co.uk/money/fund-platforms-stopping-you-converting-to-income/a948114.
Does anyone have any insights into this situation and can suggest the best approach? Is it perhaps best to wind the whole thing up completely and transfer to some other form of investment that retains the ISA wrapper but is income-based?
Thanks for any advice
Spiderbill