• luke@octagon

HELP ME I AM DRAWING INCOME FROM MY PORTFOLIO, WHAT SHOULD I DO?

6 IDEAS


Many people will be naturally concerned when investment values have fallen. Wise advice is to stay put and keep focussed on the longer term. This of course makes sense, investment values can move fast and timing the market is fruitless. However you may be drawing valuable income from your portfolio and your need is now so what should you do?


1. Keep calm

Why crystallise a loss when you don’t have to, don’t sell at the bottom of the market

2. Start Planning and remove unnecessary spend

Analyse expenditure and be proactive. Remove unnecessary expenditure, stop taking income you don’t need. Lifestyle determines spending patterns where can you make changes. Is your expenditure going up or down?

3. Use cash resources first

It may feel uncomfortable spending cash but it can be replenished when markets recover. Don’t crystallize losses at bottom of market (recovery of value will take longer if you reduce your core capital base)

4. Stop drawing cash you don’t need

Reduce income drawdown leaving moneys in funds to benefit from a recovery

5. Change the pattern of withdrawals

If money is needed consider dripping money out of the portfolio rather than taking it all out in one go (spreading the risk and accepting you will win some / lose some). Draw money from investments that have not gone down by as much but be careful of altering the risk profile.

6. Review the risk you are taking

If you are selling you may consider compensating by switching a proportion of the account into areas with a higher equity content to recoup when times are better. You should make sure you are happy with this extra risk before committing.


These times will be highly emotive, and it is important not to dive headfirst into making a significant change before carefully considering the options. It may help to write it down, think about it. Is it the right thing to do, could you do things better? Always seek advice.

The most important thing is to have a clear, goals-based investment plan, and keep to it when waters get choppy.

This article does not constitute advice. Anyone considering any form of financial planning should seek independent financial advice. Octagon Consultancy Limited is authorised and regulated by the Financial Conduct Authority (FCA). You should note that the FCA does not regulate tax advice. Past performance is not indicative of future results. The value of your investment may go down as well as up

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