Early Retirement- An Investment and drawdown plan

Ian601256

Hi All
This is my first post, I have read quite a few recently on approaches to portfolio structure and drawdown.
I would like to get some feedback on whether members more knowledgeable than I think I am broadly along the right lines.
I have played with cfiresim which gave me some comfort but I wasn't able to model exactly what I am thinking of doing.
I am 53, my wife 50.
We have around £820K of savings and investments.
We have been and would like to live on around £34K (plus inflation).
I have an inflation linked DB scheme from 60, currently valued at £5300 pa.
My state pension estimate is £7000 from 67
My wife has an inflation linked DB scheme from 60, current value £2300 pa.
Her state pension is £7000 from 67.
I propose to hold 5 years worth of cash (inc cash ISAs, accessible savings) and have the rest in investment trusts or funds (ISAs), spread around globally.
So that would be £170K cash and £650K in trusts/funds.
If the stock market falls over a period (6 or 12 months?) I would reinvest dividends and take from the cash, if the market rises I would take from dividends/sell shares/units.
I look at it as a fairly extreme Guyton Klinger approach to the stocks part of our portfolio.

I'd welcome any comments /suggestions!

Ian

AlanP_2

Welcome Ian, you'll get plenty of help on here. First a few questions:

You don't say when you want to retire?

What about current employment /pension or have you already retired?

What's your tax situations?

If you could get some of your investments into a pension wrapper and benefit from the tax relief that could hep to boost things a bit although you have a sizeable enough pot built up that you may not actually NEED any extra.

Ian601256

Hi Alan
Thanks for the reply - I'll try to give a bit more info.
Basically we are retired now.
Both been paying a bit of basic rate tax, shouldn't be paying any going forward, due to income from ISAs and capital gains allowance.
We have loaded up SIPPs in recent years with as much as we can - will withdraw this from when we hit 55 to avoid getting into tax as other pensions come along.
We will put the £2880 each into SIPPs each year.
If more info required please ask!

AnotherJoe

I'll be doing similar from mid way through this year. You could model this with Retireasy it lets you plug in various pensions coming "onstream" at different times plus other payments and outgoings. I think it might need paying for now, or at least it does to get the snazzy graphs, but its only £2 a month or so.
It wouldn't be that difficult to do in a spreadsheet either.

Ian601256

Hi AnotherJoe
Thanks for the Retireeasy suggestion, I'll have a look at it.
I have created a spreadsheet, but only have constant values for growth, inflation etc for each type of investment. cfiresim looking at a wide variety of past conditions makes it quite comforting, and I'd find it difficult to create such a spreadsheet!
Ian