|Wild Honeysuckle (Clunton, Shropshire)|
The original plan when I started drawdown in 2012 was to generate a rising natural income from which I would withdraw 4% income which I calculated should be sustainable over the longer term without depleting the capital. This would bridge the 10 year gap between early retirement at age 55 yrs and state pension.
Here is the portfolio
|(click to enlarge)|
In June 2012 when I started this series on my drawdown journey, the FTSE 100 was 5,500 and has risen to 7,443 - a gain of 35%. If we add in average dividends of say 3.8% each year, this gives a rough total return of 62%
When I started my drawdown in June 2012, the Vanguard LS 60 (acc) price was £105 and today stands at £191 - a gain of 82% or annualised average of 8.9% p.a.
Taking account of the income withdrawn over the past 7 years of £19,400, the total return including income is 84.7% which is very satisfactory and works out at an average annualised return of 9.2% p.a.
If you are managing your SIPP - accumulation or drawdown - or you are planning to do this, feel free to share your experience in the comments below.