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Can I draw £30,000 a year from a pot of about £700,000?

This investor wants to reduce his working hours and supplement his income by drawing from his investments
September 9, 2022 and Nick Sinclair-Wilson

This investor wants to reduce his working hours from age 60 and supplement his income with his savings and investments

The accounts from which he should withdraw first will depend on factors such as whether he is earning a salary and there are a number of ways he could take money from his pension

If he has an entirely income focused strategy he might miss out on capital growth so a more balanced approach may be better

Reader Portfolio
Srichand 58
Description

Sipp, Isas and general investment account invested in funds and direct equity holdings, cash, residential property.

Objectives

Work part time from April 2024 and draw £30,000 a year from investments to supplement earnings; invest £80,000 in Sipp and Isas, and grow value of investments to £700,000 over next two years; take lower risk investment approach and preserve wealth.

Portfolio type
Investing for income

Srichand is age 58, self employed and typically earns £30,000 to £40,000 a year. If he doesn't need all that he earns he keeps the money in his company. He has two grown-up, financially independent children.

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