SWR start point and market value on retirement

Sea_Shell

I guess we'll all only know what the "right" decision was in hindsight.

Take our mortgage for example. We made a point of paying it off early, 13 years ago. At the time there weren't the pension freedoms there are now, and our rate was nearly 6% so we prioritised that over pensions. However, everything's changed now and we'd probably do it differently, if we knew then what we know now.

MK62

michaels wrote: »

So losing about 0.5% pa in real terms on the whole cash buffer rather than hopefully growing at 2% in real terms if it was the invested.

The key word there being "hopefully".........
Sometimes -0.5%pa in real terms is a good return.....

Prism

michaels wrote: »

So losing about 0.5% pa in real terms on the whole cash buffer rather than hopefully growing at 2% in real terms if it was the invested. Not saying it is the wrong thing to do but pretty costly over 30 years.....

I think the best way of doing this with cash would be to have a series of fixed rate savers - assuming all 8 of those years are not needed at once. Should be easy enough to equal or slightly beat inflation doing that. I am planning of 5 years of cash and fixed savers and 5 years of fairly safe bond funds.

westv

Thrugelmir wrote: »

Including China?

Or India?

The world is a very different place to that of just 30 years ago.

Aha! So, it's different this time.

Linton

michaels wrote: »

So losing about 0.5% pa in real terms on the whole cash buffer rather than hopefully growing at 2% in real terms if it was the invested. Not saying it is the wrong thing to do but pretty costly over 30 years.....

Yes, but after 30 years most pensioners are dead.


But its not just pensioners. In my view good investing means meeting your objectives, not maximising return. Given you can meet your objectives the second priority is doing so at minimum risk.

Sea_Shell

Prism wrote: »

I think the best way of doing this with cash would be to have a series of fixed rate savers - assuming all 8 of those years are not needed at once. Should be easy enough to equal or slightly beat inflation doing that. I am planning of 5 years of cash and fixed savers and 5 years of fairly safe bond funds.

Exactly, some is at 5% (for a little while longer!!!), 3%, 2.5% etc. Some instant access, some in fixed term bonds.