funduffer wrote:Coming back to the OP, my sister needs to invest for income, to bridge the gap between early retirement and state pension - about 10 years. She will need a withdrawal rate of about 8% for these 10 years, so I would expect her capital to run down somewhat over that period, but would hope there will be a good proportion of it left at 10 years.
It will be interesting to see what the IFA suggests, if it is not higher yielding investment trusts like CTY.
I assume there are higher yielding UT’s (like Woodford’s was!), but it will be interesting to see how much they cost and how reliable the income has been through the 2008 crash and more recent pandemic.
I'm going to take a wild guess and say the advice will be for what in tax terms is a "non-qualifying insurance policy". The selling point here is, wow, look you can take out 5% a year tax-free. Yippeee! Wool descends over eyes.