Protecting spending power is a key challenge for long-term investors. Steven Hay explores how the Baillie Gifford Monthly Income Fund seeks to provide monthly income while preserving long-term value. Capital at risk and income not guaranteed.
 

Key points 

  • Inflation can erode retirement income even when account balances rise
  • Cash remains useful for short-term spending, but holding too much for too long can weaken future spending power
  • The Baillie Gifford Monthly Income Fund aims to provide monthly income while seeking to preserve the value of income and capital over time