OLTB's HYP - 3rd Anniversary

[OLTB]

Morning all

I can't believe that three years have passed already - it makes my long distance cessation from work a little too close for comfort! As a general recap of my position - I will be 50 later this year, my SIPP with HL is my only pension (apart from State Pension when that kicks in at 67 and a small workplace pension that has 8% of my earnings paid into it). The idea is for me to work until my workplace pension can fund my income to State Pension age (assuming about age 63/64 and I will fully drain down the workplace pension). Once the workplace pension is exhausted, my State Pension will be in force and should pay for food and petrol whilst my HYP (which will have been building over these years) will hopefully cover fixed direct debits and a bit more. I have two other pension portfolios - an Investment Trust one and ETF one - that will hopefully pay for my fun stuff in retirement, and will report on these at the beginning of Sept separately on a different board. Mrs OLTB will have a couple of small DB pensions, but I am assured these will not be available for the OLTB household expenditure!

Nothing of massive importance has happened over the past 12 months aside from the market trading of Sky - proceeds of which went into ITV and WPP - and the personal choice to sell United Utilities (UU.) and reinvest into Merchants. This personal choice to sell slightly improved my annual dividend income and stopped me worrying about the future of UU. - I don't know why I worried so much about UU. over all the other HYP constituents, but I am happier to have made that move.

After the news earlier this week about Greene King, my HYP position is as follows:



I will have to work out what to do with the Greene King shares once the proceeds are paid out - again, I shall wait for market trading to take place, rather than sell now.

In terms of my income targets - the following table shows the real income figures received against my target income:



I have increased the target incomes by RPI each year (assuming 3.50%) and adjust these annually once the specific August RPI figure is known by mid September. I am therefore pleased to see that my HYP income target to cover direct debits is at just over 78% and my initial income target that covered direct debits + a bit more of general expenditure is close to 50%. I was fortunate enough to have received a couple of employer pension contributions which helped boost the savings into all three portfolios, so these jumps in HYP annual income are not 'natural', they have been as a result of additional capital. I don't think there will be any further capital injections, so from here on in it's down to dividend increases and re-investment of these dividends.

So, that's where I am currently and any comments, as always, are gratefully received.

My thanks to all those who have responded to my PM's, and who have PM'd me - your help, time in replying and guidance is very much appreciated (you know who you are!)...

Cheers, OLTB.

[Gengulphus]

Some links to the previous history of this HYP and discussions of it at the time:

Original setting-up of it, assuming anything was written about it at the time, is probably lost along with the TMF boards (unless anyone happens to know that it was archived and has a link to the archived copy, of course...)

First year anniversary, and an update on the capital value

Second year anniversary

Edit: There are also a fair number of threads about specific top-ups, etc, more than I want to post as a list of links! They can be found (mixed in with a fair number of other threads, but not a huge number) by running this search.

Gengulphus

[OLTB]

Thank you to whoever straightened out my tables - they look a lot clearer now!

Cheers, OLTB.

[MDW1954]

Sorry for the late reply, I've been busy and mostly off-board.

My comment would be that many of your current holdings have frozen dividends, with others mooted to be following them (eg IMB).

I like to see a bit more growth.

MDW1954

[Dod101]

Sorry for the late reply, I've been busy and mostly off-board.

My comment would be that many of your current holdings have frozen dividends, with others mooted to be following them (eg IMB).

I like to see a bit more growth.

IMB (Imperial Brands) has not indicated any freezing of the dividend as far as I know, merely that it will not be increased by as much as 10% per annum after the current year. That is hardly a surprise and is still a lot better than HSBS, Glaxo, Shell and the like.

Dod

[OLTB]

Sorry for the late reply, I've been busy and mostly off-board.

My comment would be that many of your current holdings have frozen dividends, with others mooted to be following them (eg IMB).

I like to see a bit more growth.

MDW1954

Thanks Malcolm - I would also like to see growth and perhaps if I was drawing the dividends to live off, my patience would be tested. As I'm in the building phase, I will continue to hold the portfolio and hope that eventually, we see some increases from the firms you mention.

As Dod has said, I think that IMB will reduce the 10% increases each year eventually, unless a global increase in potheads sees their marijuana investment increase in value substantially!

Cheers, OLTB.