- These investors’ overall asset allocation is higher risk than their stated medium risk appetite
- If Don buys an annuity he could be pushed into a higher tax band
- Non-earners cannot contribute more than £3,600 gross to a pension each year
Reader Portfolio
Don and his wife
61
Description
Sipps, Isas and general investment account invested in direct share holdings and funds, cash, residential property
Objectives
Generate a stable income from investments, average annual growth in Don's Sipp of 4 to 5 per cent a year, reduce amount of mortgage on main home, invest Sipp cash in investments when market improves.
Portfolio type
Investing for income
Don is 61 and draws £38,400 a year from his self-invested personal pension (Sipp), which he manages. His wife receives £40 a month from a former workplace pension. They have grown-up children who have been provided for in a joint will.