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

ffacoffipawb

Audaxer wrote: »

That sounds like the least frightening bit. More frightening if you realise you've not got enough to last you through retirement.

Worse when you had enough at the start of the year then 10 months later the markets decide to take 12% of your funds and flush it down the toilet, meaning I need to defer retirement for 2 years to r3coup my losses. So basically having to work 2 years for nothing.

Nothing racy, just a portfolio of investment trusts.

Hopefully we get a Santa Rally this year instead of a Trump Slump and I can sell some in the new year.

:sad:

westv

12%? Is that all?

ffacoffipawb

westv wrote: »

12%? Is that all?

Probably 14% tomorrow based on the Dow. Getting depressing. Wish it was a DB Pension, I wouldnt be so stressed.

If I could swap it for a DB, I would.

Thrugelmir

ffacoffipawb wrote: »

Probably 14% tomorrow based on the Dow. Getting depressing.

You've been fortunate to experience a good bull run. Which means that despite recent falls you are are in a far better place than more recent investors. Particularly those deserting the safety of DB schemes for self managed investments. Understandable why pension funds themselves were happy to cash in investments to allow members to leave.

ffacoffipawb

Thrugelmir wrote: »

You've been fortunate to experience a good bull run. Which means that despite recent falls you are are in a far better place than more recent investors. Particularly those deserting the safety of DB schemes for self managed investments. Understandable why pension funds themselves were happy to cash in investments to allow members to leave.

I am probably breaking even now since October 2013, dividends included. Five years in cash would now be slightly ahead. Non racy IT dont seem to be able to beat the market, well mine havent anyway. The usual suspects CTY, ADIG (yuk), MYI (double yuk) and a few others.

kinger101

ffacoffipawb wrote: »

Worse when you had enough at the start of the year then 10 months later the markets decide to take 12% of your funds and flush it down the toilet, meaning I need to defer retirement for 2 years to r3coup my losses. So basically having to work 2 years for nothing.

Nothing racy, just a portfolio of investment trusts.

Hopefully we get a Santa Rally this year instead of a Trump Slump and I can sell some in the new year.

:sad:

Sounds like bad planning. I've lost about 10 percent, but I'm at least 20 years away from my planned retirement. Even 2 years before my retirement, I'd plan on at least a 7 year cycle. Even at that point, I would see the need for more than a third in cash equivalents.

kidmugsy

ffacoffipawb wrote: »

Worse when you had enough at the start of the year ...

Why didn't you lock it in?

kinger101

kidmugsy wrote: »

Why didn't you lock it in?

(a) Like property prices, the stock market only goes up, or
(b) No more boom and bust, or
(c) It's different this time

Thrugelmir

ffacoffipawb wrote: »

The usual suspects CTY, ADIG (yuk), MYI (double yuk) and a few others.

CTY - UK markets out of favour. Investors prefer global (FAANGs) Though Nasdaq moved sizably today.

ADIG - Not a trust I'm familiar with. Not personally keen on trusts that hold trusts.

MYI - 5 year performance doesn't look good

If dividends are maintained at current levels at least you'll be gaining from reinvestment as the market gyrates.

ffacoffipawb

kinger101 wrote: »

(a) Like property prices, the stock market only goes up, or
(b) No more boom and bust, or
(c) It's different this time

Cash protection in a SIPP is limited so could lose a lot more. Interest wouldnt cover the fees either.

And a bit of (c) maybe.