RSJ Financial Planning
RSJ Financial Planning
RSJ Financial Planning

Providing a Sustainable
Income Over the Long Term (Continued)

 

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This allows the adviser to manage more effectively the risk of using equities to supplement the high level of income by not taking profits from the capital element for 5 to 6 years thereby reducing the risks that equities under-perform.

Our role is to:

Initially - agree the level of income that you need and how it is to be delivered (see the projections in the enclosed spreadsheets - portfolio), explaining the associated risks of higher income aspiration against the risks of that income being realistically achieved

Ongoing - manage the stripping out of the capital so the income can be sustained over time but taking a worst case scenario (Stock market falls) not in the first 5 to 6 years. This means that the cash should not run out in that period of time.

Our investment recommendations are for a balanced portfolio with asset and fund diversification thereby investing in a broad range of equities, property and corporate bonds funds within a Wrap Account.

The funds are chosen for the quality, differing styles of fund management and stock picking so normally there are at least two funds in every sector to incorporate their differing styles of fund management. We choose the funds not only because in many cases we have met or talked to the fund managers, but by using four different quality research tools, Morningstar, Micropal, Forsyth and Standards and Poor ratings. The asset mix is chosen with a time horizon of over 6 years before the capital from the funds is needed.

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Contact us either by e-mail or phone 0151 703 1088
mail@rsjinvestments.co.uk