|It's not a fair fight, ref!|
However, one of the tests of an investment approach is how stable it is: whether you can go off on holiday for a couple of weeks and not face financial ruin while you are away. Is your portfolio open to major market or security risks that actually need your constant attention?
I have written before about our family's choice of cruising for a holiday. When we set off for the Arctic (!) this year, I don't intend to be managing our portfolio of ISAs and SIPPs - in fact not even looking at them for a couple of weeks. So, am I cruisin' for a bruisin'? Will the market steam-roller me?
In some ways, the DIY Income Investor approach is like 'having your cake and eating it too'. If the price of a security in your portfolio goes up enough, you can sell it at a nice profit; if the price goes down - well you can still console yourself with the income. And as the market yield edges up, there may be more good opportunities for income-oriented purchases.
OK, there are flaws to this simplistic approach: but it suits my mental capacity for loss (and reward). Occasionally a holding will 'crash and burn' - and some will (reassuringly) recover a few years down the road. But there is no certainty in life and as long as you try to diversify sensibly, it should not be the end of your investing career.
This year's cruise is costing a bit more than last year, which was a bit of a fluke (put it down to Kairos). Still £50 per day per person seems remarkably cheap to me, considering that it includes: an endless supply of wonderful food, maid-serviced accommodation, day-long entertainment and a series of outstanding landscapes as we sail up the coast of Norway to Spitzbergen. What is more, the kids are enthusiastic because they know that they can do their own thing (safely - and this time in their own cabin!) - which is almost impossible to achieve on any other holiday we have suggested to them.
Last year I returned to a pleasing uptick in portfolio value; I doubt that this will be repeated this year. Currently the DIY Income Investor portfolio still has around 10% in cash. Some of the recent purchases have turned out to be premature, so I think it will be wise to leave that cash on the sidelines until the market settles down a bit.
That means that the main decision to make now is which books to take for the odd half-hour when there is not much to do on shore or on board. Suggestions for holiday reading are welcome.
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.