Cash ISA vs S&S ISA - How much cash to hold?

atush

redmalc wrote: »

I am pretty nervous at the moment,sixty years of age with 100K in cash Isa,s and 110 K in pretty high risk funds,looking to take a bit of shelter but not sure what to do !?!!

If income is your game, i'd be transferring out of high risk funds, into some good long term Div paying investment trusts. Ones that have grown dividends yearly for decades is 40 years.

That way you pull your incone of 4% or more per year, and let the investment ride up and down with the markets. It's value wont really affect you if you are just drawing the income. If you have retired yet, reinvest the Div income until you actually retire.

If your outgoings are les than 33K per annum, and you dont have any big spends coming up (such as replacing a car etc) then you have far too much in cash.

Are you still working/earning? As you haven't mentioned a pension (good home for some of that spare cash to get it boosted before retirement)

coyrls

redmalc wrote: »

I am pretty nervous at the moment,sixty years of age with 100K in cash Isa,s and 110 K in pretty high risk funds,looking to take a bit of shelter but not sure what to do !?!!

My Generic advice would be to read up about asset allocation, choose a mix that you are comfortable with and move your investments to align with your chosen asset allocation. I have some cash in a Cash ISA (not as much a you) as a hangover from when there were separate cash and S&S limits (in the days of TESSAs & PEPs I think!). I don't count that money in the Cash ISA as savings but I do add it to the "bonds" category when managing my asset allocation. I will eventually move the ISA cash to bonds but the return I'm getting compares OK to bonds currently.

atush

kangoora wrote: »

53 here but looking to retire sometime in the next 5 years (3-4 hopefully)

I did this a few months ago, moved from 100% equities to around 55% now.

Put 10% each into separate property, bonds & gilts funds and 15% into Absolute Returns fund. No guarantees there obviously, but has me sleeping a little easier at night.

I've done my retirement calculations based on 3% (plus inflation) growth. On the plus side, if everything tanks (hopefully unlikely) I can just groan and work an extra year or two - really hope this won't be needed

I have done only a basic projection using 4, 5 and 6% of assets taken as income. 6% before SP age, 4% after.

but it is only tinkering based on current pot size, cash, investments and projected cash from sale of business shares and downsizing.

Doesn't allow for future income and growth. Yet. trying to be conservative as haven't taken off or added things such as sale of french place or paying off US mtg.

Also have not truly worked out our 'number' as after downsizing/twins done with uni/law school our living costs should drop dramatically but so far have only taken off the costs of feeding and housing/tuition for them at Uni. As these are the only things that are really 'known'. Plus maybe 100/m work costs and mtg costs. Again the 100 is just a guess.