At what point does sticking it all under the mattress seem viable?

Malthusian

AndyAdams wrote: »

I currently hold around 25% of my portfolio in cash. I am 52 years old and planning to retire soon (e.g. within 2 or 3 years, maybe earlier) . I too think I have a big enough pot (at current asset values). Personally I think assets prices are high and therefore I am not prepared to invest any new money into equities. Any new pension contrbutions are being held in cash.

I know others will think this is ridiculous and nobody can second guess the market but it is a personal choice.

I fall into the perma-bull camp and I think it's a perfectly sensible choice. You will be retiring in 2 years and while I have no idea what your needs or assets are, that cash probably represents your expenditure for the year you retire and a good few years beyond that.

The other key line is "I think I have a big enough pot". There is a saying that if you don't need the return, don't take the risk.

Assuming you will be spending that cash at some point over the next 5-10 years, then you have relatively little to gain from investing in the market now and quite a bit to lose - if a fall in the market means you have to push your retirement back. And having 75% of your portfolio invested means the money you will be spending after that 5-10 years will keep pace with inflation.

ratechaser

Triumph13 wrote: »

Personally I'd be more worried about bond prices than equities - same big risk of falls and much less chance of recovery afterwards.
Is it wicked of me to secretly hope this thread will degenerate into a Gold vs Bitcoin slanging match?

Please god no. I specifically avoided using the G word (even though it briefly crossed my mind as a fund option) because I've already read too many polarised threads about it on here.

As for fixed income, I've had about 10-25% of my pension pot invested in Gilts over the years and it's brought some decent returns. Not so much recently though, but the little analysis I've read so far indicates that they could benefit from Brexit so I need to investigate them further as a potential safe haven if I do want to make adjustments...

k6chris

Triumph13 wrote: »

Is it wicked of me to secretly hope this thread will degenerate into a Gold vs Bitcoin slanging match?

Unlikely to start a slanging match when everyone knows you can't hack gold......:D

System

At the point when you are satisfied that police resources are sufficient to deter or catch burglars in your area?
When you have not just posted your intentions on a public forum?

ratechaser

Clifford_Pope wrote: »

At the point when you are satisfied that police resources are sufficient to deter or catch burglars in your area?
When you have not just posted your intentions on a public forum?

Is that a clever extension of my initial metaphor or just an over-literal interpretation of what I posted?

Besides, all those sovereigns would be a bit lumpy don't you think? if I wanted something soft and expensive I'd probably have to opt for eider down...

Thrugelmir

By parking money on deposit. You may not beat inflation but at least you avoid a hefty capital loss. Sticking it under the mattress achieves nothing.