Stocks & Shares ISA Question

Orange_King

Hello to all.


I am 5 1/2 years off retirement age of 60 when I will be able to draw down the PCSPS pension, luckily having banked most of my service before being forced into the new scheme which is paid at 67.


We have been mortgage free for some 11 years but have been paying the mortgage money into a stocks and shares ISA which has now built up a final bonus of about £14k and is about £50k in total.


I am thinking of retiring early and using the £50k for the next 5 years until the pension is payable and am also concerned about the potential loss in value of the bonus element as it is linked to market conditions at time of withdrawal.


First, should I be concerned about a drop in the value of bonus with the impact of a no deal Brexit looming and get the money out soon?


Also, if I do withdraw in full, what are the best options for the money as Cash ISA's don't seem to be paying much over 1%.


Grateful for some thoughts.

SonOf

First, should I be concerned about a drop in the value of bonus with the impact of a no deal Brexit looming and get the money out soon?

If a no deal happens, the value of your investments will be likely to rise (assuming a decent asset spread). Brexit is playing out mostly in the exchange rate. Not the markets (other than with UK equities).

However, you should be phasing risk down as you get closer to the withdrawal point. The speed you do that would match your overall risk profile and your capacity for loss. If you can achieve your objective now with the current value then start thinking of reducing the risk now.

Orange_King

Thank you. So a part withdrawl would be ideal and leave the rest to ride out any short term storm.


I had assumed the assets would be directly linked to the value of the pound and a corresponding drop in the value of the units.