Sequence of returns risk?
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I don't have any "accumulation" units as I don't have any units. Where I have the choice (GPP hang head in shame) all income arrives as cash.
But history tells us that bad times are bad for dividends so this isn't a solution.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Dividends will usually fall but only to perhaps 80% and that's still a nice addition to the cash.0
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True, but the "natural yield" in my SIPP is 3% as I'm globally diversified, so would still need to be selling down some capital.
Of course, even during the bad times, I'd still be taking the max from my pensions that taxation makes sensible, but would then reinvest in ISAs while using some of the cash.
It's going to take a while for me to mentally switch from accumulating assets to spending them. It just doesn't feel natural!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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