- Moving investments into Isas will reduce the level of capital gains and dividend tax incurred
- A close eye should be kept on property fund investments
- Further diversifying the portfolio should reduce risk
Reader Portfolio
Mark and Hannah
61 and 65
Description
Pensions, Isas and general investment accounts invested in funds and direct share holdings, cash, residential property.
Objectives
Cover living expenses of £4,000 a month, protect capital value of investments over next 25 years, generate income of 4 per cent a year, improve tax efficiency, rebalance portfolio to meet aims and make easier to manage.
Portfolio type
Investing for income
Mark is 61 and Hannah is 65, and they have a joint income of £48,000 a year. Their investment portfolio provides around £30,000 of this, Hannah draws £1,500 a month from a personal pension and the remainder comes from the sale proceeds of their business.