Category: Investing

Financial review at 31 August 2019

Eight months Summary A total return in the year to date of 9.92%, slightly behind the index, results after drawdown expenditure in a capital uplift of 7.24%. Drawdown As I am not earning any income from employment any more, I am in drawdown in that I am drawing down some of my financial assets each…

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Holding your nerve during a stock market tumble

It has been reported that “only 18 per cent of investors said they stuck with their investment plans during the volatile three-month period at the end of 2018” when “the MSCI World index fell 13.9 per cent, the 11th worst quarterly fall since 1970”. The Schroders Global Investor Study 2019 added that “In the final…

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Financial review at 30 June 2019

Half Year Summary A total return in the year to date of 11.70%, slightly behind the index, results after draw-down expenditure in a capital uplift of 9.65%. Introduction I review my/our financial situation at the end of each month so as to track where we are, and also because I find it interesting. I’d now…

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Investing a lump sum

These are some ideas I passed on to a friend recently about taking a first step into investing in shares: Dear I was told that you have a lump sum of cash and are considering how to invest that for yourself and your children. I have some ideas on how I would deal with this which…

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You can live on 4% (so far so good)

I’d like to say more about my experience so far of living on 4% (or thereabouts) of my drawdown funds each year. Five and a half years ago I quit my job with a view that I could live on my existing assets if I chose to. I finished work in December 2013 so I…

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Can you live on 4%?

The 4% “safe withdrawal rate” (SWR) is often mentioned on financial independence blogs (e.g. Monevator) or in books (e.g. Reset). I view it as a guideline based on a specific historical model. I prefer to use natural yield as my guide. Having ceased paid work just over five years ago I have now calculated how…

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