Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Just one IT for life

General discussions about equity high-yield income strategies
1nvest
Lemon Quarter
Posts: 4323
Joined: May 31st, 2019, 7:55 pm
Has thanked: 680 times
Been thanked: 1316 times

Re: Just one IT for life

#444734

Postby 1nvest » September 23rd, 2021, 2:33 pm

moorfield wrote:Ok I'll start a separate thread from this one....

viewtopic.php?f=31&t=31320&p=444213#p444213

I'm interested in the risks of holding everything in just one IT, let's say MYI for arguments sake, in case I start feeling very very lazy and/or go really gaga. I would want to leave Lady M (and the Juniors) with very simple directions. Assuming the income produced is "enough", and happy with global diversification, then

Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

richfool
Lemon Quarter
Posts: 3492
Joined: November 19th, 2016, 2:02 pm
Has thanked: 1193 times
Been thanked: 1280 times

Re: Just one IT for life

#444737

Postby richfool » September 23rd, 2021, 2:41 pm

1nvest wrote:
moorfield wrote:Ok I'll start a separate thread from this one....

viewtopic.php?f=31&t=31320&p=444213#p444213

I'm interested in the risks of holding everything in just one IT, let's say MYI for arguments sake, in case I start feeling very very lazy and/or go really gaga. I would want to leave Lady M (and the Juniors) with very simple directions. Assuming the income produced is "enough", and happy with global diversification, then

Why bother with a basket?

"I'm interested in the risks of holding everything in just one IT,..."

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

Surely, it would have been most appropriate to have posted this on the "Investment Trust (and UT) board.

I don't know why so many posters seem to gravitate to the "High Yield Shares and Strategies" board and even other boards to discuss Investment Trusts. Maybe the HYP "force" won't allow them to let go and post about IT's on the IT board.
Last edited by richfool on September 23rd, 2021, 2:42 pm, edited 1 time in total.

88V8
Lemon Half
Posts: 5768
Joined: November 4th, 2016, 11:22 am
Has thanked: 4096 times
Been thanked: 2558 times

Re: Just one IT for life

#444738

Postby 88V8 » September 23rd, 2021, 2:41 pm

1nvest wrote:
moorfield wrote:I'm interested in the risks of holding everything in just one IT.... Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8

dealtn
Lemon Half
Posts: 6072
Joined: November 21st, 2016, 4:26 pm
Has thanked: 441 times
Been thanked: 2324 times

Re: Just one IT for life

#444761

Postby dealtn » September 23rd, 2021, 3:37 pm

88V8 wrote:
1nvest wrote:
moorfield wrote:I'm interested in the risks of holding everything in just one IT.... Why bother with a basket?

Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8


Although the OP didn't specify "high yield (income) investing" in his question. By posting here that limits what was a wider question.

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Just one IT for life

#444807

Postby moorfield » September 23rd, 2021, 6:32 pm

dealtn wrote:
88V8 wrote:
1nvest wrote:Would have been better to ask in a section that isn't specific to HYP style where posting about other choices aren't prohibited.

This board is OK for any type of high yield (income) investing.
As the focus seems to be on collectives it might have been more logical to start on the IT board, but it's not actually wrong on here.

V8


Although the OP didn't specify "high yield (income) investing" in his question. By posting here that limits what was a wider question.



I would want a yield greater than the FTSE100. The thinking would be to decommission an HYP(ish) portfolio and replace it with a single IT from which dependents could draw an income, and sell off bits if needed.

1nvest
Lemon Quarter
Posts: 4323
Joined: May 31st, 2019, 7:55 pm
Has thanked: 680 times
Been thanked: 1316 times

Re: Just one IT for life

#444950

Postby 1nvest » September 24th, 2021, 9:49 am

moorfield wrote:I would want a yield greater than the FTSE100. The thinking would be to decommission an HYP(ish) portfolio and replace it with a single IT from which dependents could draw an income, and sell off bits if needed.

Might not it be OK to just leave the HYP(ish) alone with the simplification of excess cash in the account(s) being dropped into a broad fund/IT?

Pure HYP1 style (no tinker) is generally fine. Yes over time it tends to look more concentrated but that still works. Of the order 15 original equal capital weighted after a couple of decades drifts to being more like 5 relatively heavily weighted and the other 10 that if combined in effect represent a 6th holding i.e. still reasonably diversified. Even further out and maybe one stock is half of the portfolio value, but where the good/great gains that achieved relative to the others has you far enough ahead that even if that collapsed/failed it still wouldn't be critical. US LEXCX for instance that was similar to a HYP1 style has 19 of a original 30 stocks in 1935 still running and where one is near 50% of the total recent portfolio value, whilst the real portfolio gains have been very comfortable such that even if the portfolio value was halved investors would still have done OK.

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Just one IT for life

#444956

Postby moorfield » September 24th, 2021, 10:14 am

1nvest wrote:Might not it be OK to just leave the HYP(ish) alone with the simplification of excess cash in the account(s) being dropped into a broad fund/IT?

Pure HYP1 style (no tinker) is generally fine. Yes over time it tends to look more concentrated but that still works. Of the order 15 original equal capital weighted after a couple of decades drifts to being more like 5 relatively heavily weighted and the other 10 that if combined in effect represent a 6th holding i.e. still reasonably diversified.



Possibly. I am about to embark on this experiment actually. For reasons I won't dive much into here, I am somewhat restricted by my employer currently in buying/selling individual shares but not ITs, so I am planning to reinvest my HYP(ish) divis into building up a holding of MYI or CTY for the next few years. It will be interesting to see how the rest of the portfolio evolves in the meantime.

taken2often
Lemon Slice
Posts: 382
Joined: November 9th, 2016, 12:10 pm
Has thanked: 8 times
Been thanked: 79 times

Re: Just one IT for life

#458240

Postby taken2often » November 15th, 2021, 4:10 pm

Late to the Post
Write on one sheet in large letters the five or ten most important instructions. They may or may not follow them, but you will have done nearly all that is possible.

Have a Power of Attorny in place, buttons if you do it yourself. If left too late it can cost thousands through the courts. And they may appoint one themselfs.

I have about 130 items all designed to run for ever, some might die off. Thats life. At present my income comes from the taxable fund and any capital required would come from liquidated stock. If I felt that I was going gaga I could switch on the income from my ISA.I will never draw feom my SIPP.

This post has brought to my attention a point that I will look into and perhaps raise with H-L. If I sell taxable stock say 100k can I leave an instruction to say pay this into my bank account 10k a year until dissipated. This would help index the dividend flow if inflation was greater than the dividen flow.

Once again a thought provoking Post

Bob

Remind them that a financial advisor will take a percentage and that taking some interest could save a lot

AshleyW
Lemon Pip
Posts: 55
Joined: April 23rd, 2020, 5:43 pm
Been thanked: 32 times

Re: Just one IT for life

#458347

Postby AshleyW » November 15th, 2021, 11:58 pm

I am retired and around 25% of my investments is an 8 Investment Trust Income Portfolio. I worry like other contributors that I will suffer mental incapacity maybe this will be so severe that it is obvious I am not capable to run my own finances but what is perhaps riskier is a gradual deterioration of capacity which results in poor decision making that is unrecognized by me and my family. I cannot see how it is possible to put any portfolio of active ITs or funds on auto-pilot or provide to a relative an investment manual that they must follow.

A lot can happen over 20 to 30 years - changes in ownership, manager, strategy, market environment, etc.. We have seen in recent years well-respected managers change investment style to the detriment of investors (Barnett, Woodford ..) and others. I cannot see a perfect solution if I´m unwilling to hand my finances over to a professional manager with the costs and risks that this could entail. Robo advisors are a possibility but their underlying algorithms are human-derived and unproven. Perhaps if Vanguard opens up their personal financial management services to the post-retirement sector (as in the USA) this could be a low-cost, trustworthy solution.

This issue of mental capacity is a real dilemma At the moment my intention is in 10 years time or so is to ditch all actively managed investments and go for passive index investments - the most obvious candidate being Vanguard LifeStrategy - and even this is subject to management error as although the underlying funds are indexed someone has to decide on the funds held and percentages. One also hopes that Vanguard will adapt these over time to reflect changes in the investment environment and be willing to incorporate alternative investments if the evidence supports this.

There simply isn´t a risk-free, low-cost solution.

taken2often
Lemon Slice
Posts: 382
Joined: November 9th, 2016, 12:10 pm
Has thanked: 8 times
Been thanked: 79 times

Re: Just one IT for life

#458421

Postby taken2often » November 16th, 2021, 10:30 am

The Guidance Note would be for the POT to follow your instructions as long as you prepared them whilst competant. In my case my Executor would have a copy but placed in the position of having to work round them but also have to liquidate assets to pay a very large IHT bill so some Guidance may be required for that. Of course as the dead have no rights the Executor will have full powers to do what they wish. Which may be to pass the whole thing over to a solicitor. Happy Days for them.

Bob

MrFoolish
Lemon Quarter
Posts: 2284
Joined: March 22nd, 2020, 7:27 pm
Has thanked: 553 times
Been thanked: 1115 times

Re: Just one IT for life

#458574

Postby MrFoolish » November 16th, 2021, 6:53 pm

I'd have to vote for F&C IT. It's huge, has been around forever, and it includes a bit of private equity spice.

If you want a lot more private equity spice, take a look at ICG Enterprise. (But DYOR)


Return to “High Yield Shares & Strategies - General”

Who is online

Users browsing this forum: No registered users and 10 guests