It's time to start digging up those Squirrelled Nuts!!!!

Audaxer

Sea_Shell said:

Audaxer said:

Sea_Shell said:

Just been updating the end of month figures on my spreadsheets, and we have gross annual growth across the whole pot of 5.03%, which is good news.   Net growth, after spends, is 3.02%

I've updated the OP with the current numbers.

Your investments are doing really well, especially that American growth fund you have.

Just out of interest is the growth percentage increase just relating to the investments or is that based on the total portfolio, inclusive of the cash part? 

That's for the pot as a whole, yes, including cash.    Luckily we have a fixed term bond due to mature next September, which is paying 2.2%, that's got about £59k in it.    Most of the rest of the "ready cash" is in VRS's still getting 2%.

Approximately 50% of our total pot is in equities, in various places and % splits (ISA's/pensions), so we are still aware that this element could take a nose-dive any day.    So yes, we are cautious, but not overly so.

Obviously Covid has curtailed our plans for 2020, like it has for almost everyone.      I know for some people they'd see growth above what they need, and it would burn a hole in their pocket, and their first thought would be "what can I spend it on"!

As for the suggestion, up thread, that I retired too late ROFL....I was 47!!!!

We do have to be a little cautious about making the pot last, as if we do live to a ripe old age, I still want to be able to pay for all the services that we will no doubt need, to do all the things we can't do for ourselves any more.    We don't have children we can "badger" to come and do jobs!!      Cleaner, gardener, taxis, delivery charges, and the small medical stuff like physio, chiropody etc.

Thanks. You are quite right to be cautious, I am the same. I take it your drawings are all coming from the cash pots at present rather than taking income the investments? You are in a good position in my opinion as you do not need to take on additional risk with a higher percentages of equities unless you particularly wanted to.  

My investments haven't done quite so well as yours as I am a bit heavy in UK Equity Income in my income portfolio. I am trying to decide whether best to change some of the UK funds for global growth funds, or whether to hold them meantime as still providing dividends, and wait until the UK markets hopefully recover to pre-March levels.

I also had to smile when it was suggested above that you had retired too late as I remember you had retired in your late 40s.

Sea_Shell

Audaxer said:

Sea_Shell said:

Audaxer said:

Sea_Shell said:

Just been updating the end of month figures on my spreadsheets, and we have gross annual growth across the whole pot of 5.03%, which is good news.   Net growth, after spends, is 3.02%

I've updated the OP with the current numbers.

Your investments are doing really well, especially that American growth fund you have.

Just out of interest is the growth percentage increase just relating to the investments or is that based on the total portfolio, inclusive of the cash part? 

That's for the pot as a whole, yes, including cash.    Luckily we have a fixed term bond due to mature next September, which is paying 2.2%, that's got about £59k in it.    Most of the rest of the "ready cash" is in VRS's still getting 2%.

Approximately 50% of our total pot is in equities, in various places and % splits (ISA's/pensions), so we are still aware that this element could take a nose-dive any day.    So yes, we are cautious, but not overly so.

Obviously Covid has curtailed our plans for 2020, like it has for almost everyone.      I know for some people they'd see growth above what they need, and it would burn a hole in their pocket, and their first thought would be "what can I spend it on"!

As for the suggestion, up thread, that I retired too late ROFL....I was 47!!!!

We do have to be a little cautious about making the pot last, as if we do live to a ripe old age, I still want to be able to pay for all the services that we will no doubt need, to do all the things we can't do for ourselves any more.    We don't have children we can "badger" to come and do jobs!!      Cleaner, gardener, taxis, delivery charges, and the small medical stuff like physio, chiropody etc.

Thanks. You are quite right to be cautious, I am the same. I take it your drawings are all coming from the cash pots at present rather than taking income the investments? You are in a good position in my opinion as you do not need to take on additional risk with a higher percentages of equities unless you particularly wanted to.  

My investments haven't done quite so well as yours as I am a bit heavy in UK Equity Income in my income portfolio. I am trying to decide whether best to change some of the UK funds for global growth funds, or whether to hold them meantime as still providing dividends, and wait until the UK markets hopefully recover to pre-March levels.

I also had to smile when it was suggested above that you had retired too late as I remember you had retired in your late 40s.

Yes, we are drawing only on our cash funds at the moment.    Not touching any of the investments yet.

Big decisions come next year when DH turns 55, and the bond matures, as it's going to be almost impossible to get decent returns to keep "much" in cash.    So will probably go Premium Bonds for our emergency cash, and actually start living off the investments/pension.

Audaxer

Sea_Shell said:

Audaxer said:

Sea_Shell said:

Audaxer said:

Sea_Shell said:

Just been updating the end of month figures on my spreadsheets, and we have gross annual growth across the whole pot of 5.03%, which is good news.   Net growth, after spends, is 3.02%

I've updated the OP with the current numbers.

Your investments are doing really well, especially that American growth fund you have.

Just out of interest is the growth percentage increase just relating to the investments or is that based on the total portfolio, inclusive of the cash part? 

That's for the pot as a whole, yes, including cash.    Luckily we have a fixed term bond due to mature next September, which is paying 2.2%, that's got about £59k in it.    Most of the rest of the "ready cash" is in VRS's still getting 2%.

Approximately 50% of our total pot is in equities, in various places and % splits (ISA's/pensions), so we are still aware that this element could take a nose-dive any day.    So yes, we are cautious, but not overly so.

Obviously Covid has curtailed our plans for 2020, like it has for almost everyone.      I know for some people they'd see growth above what they need, and it would burn a hole in their pocket, and their first thought would be "what can I spend it on"!

As for the suggestion, up thread, that I retired too late ROFL....I was 47!!!!

We do have to be a little cautious about making the pot last, as if we do live to a ripe old age, I still want to be able to pay for all the services that we will no doubt need, to do all the things we can't do for ourselves any more.    We don't have children we can "badger" to come and do jobs!!      Cleaner, gardener, taxis, delivery charges, and the small medical stuff like physio, chiropody etc.

Thanks. You are quite right to be cautious, I am the same. I take it your drawings are all coming from the cash pots at present rather than taking income the investments? You are in a good position in my opinion as you do not need to take on additional risk with a higher percentages of equities unless you particularly wanted to.  

My investments haven't done quite so well as yours as I am a bit heavy in UK Equity Income in my income portfolio. I am trying to decide whether best to change some of the UK funds for global growth funds, or whether to hold them meantime as still providing dividends, and wait until the UK markets hopefully recover to pre-March levels.

I also had to smile when it was suggested above that you had retired too late as I remember you had retired in your late 40s.

Yes, we are drawing only on our cash funds at the moment.    Not touching any of the investments yet.

Big decisions come next year when DH turns 55, and the bond matures, as it's going to be almost impossible to get decent returns to keep "much" in cash.    So will probably go Premium Bonds for our emergency cash, and actually start living off the investments/pension.

I think that makes sense. In your situation I think I would also start living off investments next year, only resorting to cash at the next equity crash, whenever that may be. Looking at your updated figures, I calculate that you have about 15% in cash which I don't think is too much, even with interest rates as low as they are.

Sea_Shell

Audaxer said:

I think that makes sense. In your situation I think I would also start living off investments next year, only resorting to cash at the next equity crash, whenever that may be. Looking at your updated figures, I calculate that you have about 15% in cash which I don't think is too much, even with interest rates as low as they are.

Yes, you're right, it's about 15% of the total.   Will probably look to reduce it down to about 10% going forwards.   That would give us 3-4 years of spending cover.

Sea_Shell

As the interest rates are being culled, and are virtually going to be zero for the foreseeable, how much physical cash are we all going to hold, going forward?     An immediate emergency fund.

We've always had a very minimal cash amount in our wallets, £50 max, as we've always had 2nd, 3rd accounts to use if we had a problem with our main account, and we also have CC's.

However, especially as TSB is reducing to 0%, we were thinking of just closing our 3 accounts with them, and just keeping a bigger cash stash.      

How much?    £100, £200, £500 ???     

This would be in case of a problem with our main account, of if card payment system went down etc.

What's the longest that a bank's systems have been down for?   

Stubod

Actual "cash in  hand" would never be more than about £200 between the 2 of us.

When covid started in March I had about £50 in my wallet...and it's still there!!

carl05

Hi Sea Shell we were in a similar situation, we decided rather than keeping cash at home (apart from the usual £50 emergency fund) we kept open a second cash account with £500 in just in case our main account is inaccessible for what ever reason. We just accepted no interest on this. Its a bit of a pain but given all the online banking issues in the past seems sensible insurance.

Audaxer

I can't see me keeping more physical cash as I've had the same £20 note in my wallet since March. Even if cash savings rates went down to zero, I don't think I would hold more physical cash as I never use cash nowadays.

enthusiasticsaver

We are not keeping physical cash.  As Audaxer says it is rarely used these days and I still have a tenner in my purse from February.  Most shops around here and even taxis now (which was the only place I used cash previously) now accept and prefer cards.  We do have accounts with three separate banks though.  Joint account with one, I have a personal one with another and DH also has a personal account with a different bank purely in case any of those banks have a problem with their banking systems.  I think Nat West bank systems were down for almost a week a few years back and of course TSB had problems last year.  If you also have a credit card I would think you have all bases covered.  

Sea_Shell

What about the actual card payment system going down?     Either widely or just in the shop you're in?