- This investor would like to reduce his working hours ahead of full retirement and supplement the income shortfall with pensions
- His return target of 10 per cent a year is ambitious, especially as he does not want his investments to fall in value by more than 10 per cent
- He could diversify his growth-biased portfolio with value and income funds
Reader Portfolio
Mervyn
58
Description
Pensions, Isa and Sipp invested in funds, direct shareholdings and cash, residential property.
Objectives
Partially retire at age 62, working three to four days a week, and supplement income with pensions, continue to invest, average annual return of 10 per cent 5 per cent of which is income.
Portfolio type
Investing for growth
Mervyn is age 58 and earns £41,000 a year. His children are in their 20s and becoming financially independent. Mervyn and his wife’s home is worth around £220,000 and they will have repaid the mortgage on it by 2023.