moorfield wrote:I would want a yield greater than the FTSE100. The thinking would be to decommission an HYP(ish) portfolio and replace it with a single IT from which dependents could draw an income, and sell off bits if needed.
Might not it be OK to just leave the HYP(ish) alone with the simplification of excess cash in the account(s) being dropped into a broad fund/IT?
Pure HYP1 style (no tinker) is generally fine. Yes over time it tends to look more concentrated but that still works. Of the order 15 original equal capital weighted after a couple of decades drifts to being more like 5 relatively heavily weighted and the other 10 that if combined in effect represent a 6th holding i.e. still reasonably diversified. Even further out and maybe one stock is half of the portfolio value, but where the good/great gains that achieved relative to the others has you far enough ahead that even if that collapsed/failed it still wouldn't be critical. US LEXCX for instance that was similar to a HYP1 style has 19 of a original 30 stocks in 1935 still running and where one is near 50% of the total recent portfolio value, whilst the real portfolio gains have been very comfortable such that even if the portfolio value was halved investors would still have done OK.