Drip Feed my HYP

[pds2008]

I currently have a modest HYP supplemented by a dormant occupational pension, with AC's and a SIPP that will become available to me when I reach 55 this year. I also have about 250k coming my way in a couple of lumps this year and I want to expand my HYP and supplement with some IT's and some Trackers. I am aiming for a 60/20/20 split (HYP/IT/Tracker) which I believe reflects my current aspirations to actively manage my investments at this time.

My questions is around the approach to transferring cash into these vehicles during the remainder of 2018. Rather than invest in large lumps I was going to invest around 20k per month and spread this over a 12 month period. It is the best way, I believe, to hedge against some of the current volativity even though I am committed to HYP/IT approach to make he most of my money and provide me with income.

Any comments on this aproach?

Yell

[Alaric]

Rather than invest in large lumps I was going to invest around 20k per month and spread this over a 12 month period.

You might gain relatively speaking if the market does badly or lose out on gains if it does well. Another possible advantage of a spread approach is that it probably avoids having funds frozen whilst a paranoid money laundering filter investigates the source of funds.

[kempiejon]

pds2008,

I understand what's likely to be in your HYP, 20ish large blue-chip dividend payers but what's the focus of the ITs you mention and the tracker? I have etfs (tracker-like)for Europe, USA, Asia and emerging markets and I have ITs for global growth, UK income and international income.
If you're nervous of a big lump dripping in will smooth some drops and miss some pops as others have said. From my practical experience when I had a bigger lump to invest I chose quarterly. I suppose £20k lumps you could use up in 1 year. Would the money go into each strategy each month or first one then the next and next?

[pds2008]

Hi Kempiejohn

Two drivers for looking at IT's/Trackers; firstly to expose myself to geographical markets that I am unfamiliar with and, secondly, to gain exposure to vehicles that will hopefully serve when I become a more passive investor in later years (but one that still requires a certain level of income).

Your post reinforces the need for more research in the area of Trackers/ETF's - thanks

Yell

[kempiejon]

Hi Kempiejohn

Two drivers for looking at IT's/Trackers; firstly to expose myself to geographical markets that I am unfamiliar with and, secondly, to gain exposure to vehicles that will hopefully serve when I become a more passive investor in later years (but one that still requires a certain level of income).

Your post reinforces the need for more research in the area of Trackers/ETF's - thanks

Yell

I see your thinking, I too like to get exposure to other markets and investments via collectives, I'm still undecided on passives for income but it's an idea with traction on the boards.