Split Portfolios for Income

​

Having advised through several significant market falls, we have designed an investment solution that splits your portfolio into three pots of money. This is particularly important for clients who are drawing a regular ‘income’ from their pensions and/or investments.

1. Income / Short term

2. Medium Term

3. Long Term

 

The aim is to draw income from the short-term pot which will initially have an amount of between 3 and 5 years income. At an annual review, we will assess whether to switch money into the short-term pot from the medium and long term pots. Each clients portfolio is, therefore, bespoke.

​

Why do we do this:

Alan, our director, recalls:

“In 2008 and 2009, I was having awkward conversations at client annual reviews following the falls in markets which saw client capital values fall. I had to advise clients to reduce the amount they were drawing each month, as their drawings would be unsustainable over the long-term. Effectively, clients were selling assets (to draw as an income) at a significant loss. I wanted to design a solution that would protect against short term volatility. The three-pot solution would have been perfect in 2008/9 and would have helped to avoid these conversations.”

​

Not all pension and investment provider platforms allow us to implement the three-pot solution, which means our research is absolutely key to recommending a suitable provider.

We are very proud to present solutions to clients that help provide peace of mind.