Merry Correction Day

Linton

kidmugsy wrote: »

How will you console yourself when your accumulation phase has finished?

Why need consolation when you have followed this boards advice and ensured you have 3-5 years living expenses in cash and bonds? After all your retirement date is unlikely tto catch you unawares.

kidmugsy

Linton wrote: »

Why need consolation when you have followed this boards advice and ensured you have 3-5 years living expenses in cash and bonds? After all your retirement date is unlikely tto catch you unawares.

Because the markets could disappoint for far longer than 5 years: they have in the past.

OldMusicGuy

I'm feeling ok as I have plenty of cash (in cash and a bond ladder) just to be ready for this and avoid sequence of returns risk. I do not need to sell any investments for at least 5-10 years.

Audaxer

OldMusicGuy wrote: »

I'm feeling ok as I have plenty of cash (in cash and a bond ladder) just to be ready for this and avoid sequence of returns risk. I do not need to sell any investments for at least 5-10 years.

Thankfully I don't need to sell investments either, but I will want to take dividends within the next few years. I am hoping that in the event of a full blown crash, income producing funds will not reduce dividends by much.

Prism

A 60/40 allocation during retirement should equate to roughly 10 years of bonds and cash without having to touch equities. Lots of vague assumptions of course - 4% withdrawal rate, 25 year retirement etc

MK62

Linton wrote: »

Why need consolation when you have followed this boards advice and ensured you have 3-5 years living expenses in cash and bonds? After all your retirement date is unlikely tto catch you unawares.

kidmugsy wrote: »

Because the markets could disappoint for far longer than 5 years: they have in the past.

The nightmare scenario for any new retiree.....as well as many already well into retirement on a stock market related pension.

Audaxer

Prism wrote: »

A 60/40 allocation during retirement should equate to roughly 10 years of bonds and cash without having to touch equities. Lots of vague assumptions of course - 4% withdrawal rate, 25 year retirement etc

I think if you're 60 it's safer to plan for a 30 year retirement and a maximum 3.5% withdrawal rate.

Mothman

Had planned to retire in 2019 but have now decided to defer the decision. Holding 5 years expenditure in cash but feel uneasy having to call on it from day one, though appreciate this may be an emotional rather than rational response, but as all my pensions are DC I find sequence of return risk scary.

atush

kidmugsy wrote: »

Because the markets could disappoint for far longer than 5 years: they have in the past.

not in my past

atush

i am still waiting for the merry recovery day post?