Stress Testing your Retirement plan....have you??

DairyQueen

OldMusicGuy wrote: »

I did the same thing in February - I felt I was holding too much cash so moved 100K into a multi-asset fund 2 days before the correction.:

If it's any consolation I completed a complete review and reinvestment of our self-managed portfolio the week before the Feb dip.
Win some/lose some.:)

OldMusicGuy wrote: »

Tell your OH he will just have to keep working a bit longer until that DC pot recovers I don't think he was showing much intention to retire, so maybe you have given him the excuse he needs....:rotfl:

He never needs much of an excuse.
Like I said, even when I win, I lose.;)

Audaxer

shinytop wrote: »

Through general laziness, inertia and lack of planning I never got around to putting about £60k of cash ISAa into S&S over the last year. Kind of glad I didn't now but I know the 'do nothing' approach won't always work.

Are you going to take advantage of the dip now to move it into an S&S ISA before the markets recover?

In my view there is nothing wrong with keeping some money in Cash ISAs as the defensive part of an overall portfolio, as probably as good as bonds at present.

Audaxer

OldMusicGuy wrote: »

I'm currently holding at least five years cash and am getting an average of 1.8% interest. When we downsize next year, we could have enough cash to last us 10 years.

I think if you can survive comfortably on cash for the first decade of your retirement, then you are very well set up as I understand that if the sequence of returns is bad in the first decade of a 30 year retirement, there is a much higher risk of running out of money than if a bad sequence of returns later on.

Thrugelmir

Audaxer wrote: »

Are you going to take advantage of the dip now to move it into an S&S ISA before the markets recover?

What if the "markets" still haven't corrected and rebased themselves as yet. With further to fall. A further increase in interest rates by the Fed in December isn't going to help sentiment, for example.

Wednesday2000

I would plan on us selling our house and moving somewhere cheaper or one or both of us going back to work if there was a problem with our retirement plan.

I am only going to be 50 at retirement and he will be 55 so both of us could probably find a part-time job.

We don't have kids, are mortgage free and we could cut our budget down quite a lot so I can't really see a scenario where we would have to do that though.

Audaxer

Thrugelmir wrote: »

What if the "markets" still haven't corrected and rebased themselves as yet. With further to fall. A further increase in interest rates by the Fed in December isn't going to help sentiment, for example.

He doesn't have to invest it all just now, but if he is planning to invest the Cash ISA money, best to invest at least some of it now, and invest more of it if the markets fall further. That's what I am doing so I am quite happy to see the markets falling at present.

JillieA

I am not naturally a 'Jonah' but I wouldn't like what happened to me to happen to others. We were a very happy family (husband, me, 2 kids) and thought we were prudent. We had made a 'retirement plan' for our future financial security. What we didn't expect was that at age 57 my husband had a severe heart attack causing brain damage from which he could not recover, leaving him with no memory and living in a care home. We had not thought of Lasting Powers of Attorney and in his (then) situation, he could not give me a Power of Attorney. This caused huge stress and distress as the power companies, council, water etc. would not talk to me but were pestering for payment nevertheless and our financial accounts were also thrown into chaos. So all partners , young or old, do sort out a Lasting Power of Attorney. I hope you will never need it, most of you won't, but if you should be that unlucky, it will save acres of worry and upset.

badmemory

JillieA wrote: »

So all partners , young or old, do sort out a Lasting Power of Attorney. I hope you will never need it, most of you won't, but if you should be that unlucky, it will save acres of worry and upset.

Completely agree with this. I believe Martin has one (& he's a lot younger than me), I obviously have one, well 2 actually, both in the box that my DS steadfastly refuses to look into, you can take a horse to water but you can't make them drink, or read for that matter.

MK62

I'm sorry to hear about what's happened to your family, but thanks and respect for coming on here and letting people know.

It's a timely reminder to us all that stress testing our financial plans isn't just about returns and withdrawal rates.....

Slinky

I've read an awful story recently about a lady who removed her mother from a care home as she was unhappy with the care provided, only to have social services and the police turn up to take her back into care, all because there was no LPA.


We have made them and we're only in our 50s. Accidents or illness can strike at any age.