Hello, I am interested in a discussion and hearing peoples ideas on a subject I never really see written about. Essentially what challenges people face as their portfolio gets bigger, and as they start to drawdown funds for living expenses.

I guess this is really broken down into two sections;

Firstly as your investing style changed as your portfolio has grown? For instance do you trade less as positions have grown? Or have you raised the minimum size of companies for liquidity reasons? Or do you hold more positions now? Have you moved more funds into “safer” dividend investments or managed funds or index trackers?

Secondly is how do you manage withdrawals? Do you withdraw a fixed amount at a fixed period of time regardless of what the market is doing, say quarterly or monthly? Do you withdraw a lump sum yearly but vary it according to previous years returns? Do you just withdraw as and when you need to and deal with it on a case-by-case basis?

Rather than specify amounts let's assume that portfolio size is whatever you personally feel is “enough” to meet whatever your goals were when you started. Enough to live on, or supplement your income or pension, put your kids through university or coast to retirement for example.

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here