Archive for the ‘growth strategy’ Category
someone who wants to go to early retirement has all of his savings in an aggressive capital growth fund. he wants to start earning passive income from investments but does not know how to shift investment strategies. should he gradually move his funds to an income fund (or another investment vehicle) months ahead leading to the target retirement month, or does he move some of his funds to an income vehicle one-time at retirement, keeping the rest in the same fund?
thank you for your answers. here are some options that are being considered:
- autopilot: moving everything to a lifecycle fund immediately
- moving everything to a selected balanced fund gradually
- actively manage asset allocation with a mix of fixed income investments while keeping some money in the fund (and others) with the help of a financial advisor
Are you happy staying an aggressive investor? If the answer is yes you can set up a monthly systematic withdrawal plan from you existing aggressive funds and just draw income monthly. There are some simple common sense rules to follow in setting up this plan. Send me an email and I will explain in full detail.
If you no longer wish to be as aggressive as you have been then you will need to establish a totally different asset allocation.