Managing Your Money 

I want to leave £1.4m to charity

Reader Portfolio

David, 67


Isa and Sipp


Capital preservation

<p>Isa and Sipp</p>

David is 67 and his wife is 68. They have income of £36,000 from state and occupational pensions, nearly all index-linked. However, they also have investments worth £1.423m held in individual savings accounts (Isas) and personal pensions.

Because they intend to leave this portfolio to charity, they are inclined to a capital preservation strategy. The investments held in the portfolio are influenced by John Baron's investment trusts portfolios for the IC and consist of 20 holdings in collective investments (open-ended investment companies (Oeics), investment trusts and exchange traded funds).

David says: "We have no children and almost all our money will go to charity on our deaths. This is a motivating factor - to benefit good causes without exposing ourselves to unreasonable risk. We enjoy good health and own our home. The only way in which we would be likely to spend significant sums is if one or both of us went into care, but that appears quite remote at present."

We have £186,000 invested outside Isas and personal pensions. In recent years we have drawn on this to make up the difference between our expenditure of £70,000 a year and our income from state and occupational pensions.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now