Buying The Living is Yield-y: a natural yield model portfolio [Members]
For MOGULS by The Investor
on May 23, 2025
Time for the rubber to meet the road – or rather for the imaginary mouse clicks to meet a hypothetical online broker – as we ‘buy’ our The Living is Yield-y model portfolio for long-term income.
When I outlined in 5,000 oh-so-individually-essential words my rational for creating a model income portfolio last month, I wondered if I was setting it up just ahead of stock market crash.
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Nice article and great idea to do this portfolio. Thank you. I understand why you haven’t done it but it would interesting to see what the average weighted TER and other non platform costs are just as a ball park comparison to the 0.2-0.3% which is easily achievable for a global tracker.
@TI – brilliantly timed for me. Thank you.
I decided several months ago to view my stash as having three legs – state & equal DB pension as the floor (in 7 years); SIPP post-PCLS is mostly Global tracker, BHMG, Gold and enough cash to cover my next 7 years family expenses. I need some resilience here as I still want to go on holiday if the market crashes 50%. This is for my contribution to family living expenses and to use up the personal allowance until pensions kick in and as cash for holidays, new car, other lumpy big ticket items and hopefully provide house deposits for the kids in 15 years (optional); and my ISA to provide my personal, monthly expenses.
Yes, I know money is fungible and all that, but it works for me.
The ISA is invested mostly in ITs and should generate 133% of my expenses (I hope it also force some budgeting discipline on me!) which I hope is enough fat to see me through. The 33% will be re-invested in FI, probably cheap ETFs as I’m looking to sell these down if the dividends aren’t sufficient, rather than contribute to dividends. It will be my personal expenses emergency fund . I’ve been a fair bit more aggressive than you and I’ve a few holdings I’ve been waiting to trim and reinvest – HICL, INPP and SPDR Global Dividend Aristocrats are all x2 overweight. I’ve been waiting for your model portfolio to give me some ideas. Once I’ve trimmed, it’ll give me 12 funds of about equal value. That’ll do for the time being.
I’ve also gone big into renewables (TRIG – mostly wind – and Foresight Solar – mostly… err, solar. The dividends are juicy and they’re on big discounts (as are HICL & INPP). The discounts protect me as long as I monitor that asset disposals are near book value.
Now I just need to be brave and retire. Ho hum.
@Brod #2 > Now I just need to be brave and retire.
JFDI. Every OMY at work is one more year you’ll never live again 😉 Not a universal recipe but you’ve thought it long enough. Don’t just load the gun, pull the trigger.