Change of investment style - opinion please

📊 Investing
1

Hi. Please can I ask for some opinion on an investing plan I’m am seriously considering of changing to.
Not asking for specific financial advice, just an opinion if my plan makes sense?

I currently hold 30 regular stocks, quite diversified to a value of just over £5700 and adding to at a rate of £100 a month minimum.

I am about a 95% dividend income investor (with a few recovery plays). The main aim of this is to boost my retirement income in 2.5 years.

Using a dividend forecaster I can get a steer on possible projected income returns over the next 3 years.

What I’ve been able to work out is that for the same investment I can increase my income three fold by selling up and buying into a small handful of quarterly and monthly funds.

The upside is less managing of the portfolio for me and likely increased monthly payments, which is exactly what I’m trying to achieve (looking to get to as near £100 a month as I can).

The downside is probably not such a good overall return in growth by keeping stocks, even taking into account that’s the normal trade off.

I’ve hit all my ex div dates so I’ve about a two weeks window to pull this off now if I go ahead.

What would you do?

Many thanks
Davey

1 Like
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Sounds a sensible plan. I’ve done something similar, but more focused on growth than income. It’s been a Godsend, I really don’t miss the headache and timesink of keeping track of 30-odd stocks. An average ongoing cost of about 0.30% is worth every penny to me.

I’d consolidate into a handful of trusts, such as HFEL, CTY, BRNA and MYI. Another advantage of ITs is that they can put aside cash for a rainy day. That way, if companies’ dividends evaporate – as happened about this time year – a trust can maintain or continue to grow its dividends.

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Thank you. At least the first reply wasn’t ‘don’t be a fool’!

I’ve started selling off my in profit stock and buying into the dip in the bid names I have who turned red like Tesco and L&G. Until they come around.

Cheers