RSJ Financial Planning
RSJ Financial Planning
RSJ Financial Planning

Providing a Sustainable
Income Over the Long Term (Continued)


General Factors:

Income from Asset Classes - they are not dependent upon the capital value on a day to day basis
Dividends - the unique nature of investing in equities/shares is that the income they provide (dividends), have historically kept pace with inflation and rarely falls. For the five years up to December 2003 (covering one of the worst periods of share performance) income from good income funds increased by over 20% yet the capital values fee up to 50%. Currently dividends are growing at about 6% per annum (2007)
Fixed Interest - they provide a high level of income but are fixed by the underlying Fixed Interest product whether it be Gilts or Corporate Bonds
Property - they provide Rental Income which in most cases will increase inline with inflation depending upon the Leases.
Cash - Interest rates are dependent upon the current Bank rate and that can go up and down
Long Term Growth - we project on a long term growth rate of 8% but we have to take into account the short term volatility of the Equity Markets which over period of 5 to 6 years have beaten other asset classes.

Real Rate of Return is this 5% per annum (8% target return less inflation of 3%)

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Contact us either by e-mail or phone 0151 703 1088