Squeaky bum time!

Drp8713

ffacoffipawb said:

Drp8713 said:

Those worried should think back to the last two corrections.
January 2018 and September 2018, remember those? Nope, me neither. Sure I will see and forget about many more over the next 40 years.

No dodgy diseases then though.

Pretty sure it was inbetween Ebola and Zika.

ffacoffipawb

Drp8713 said:

ffacoffipawb said:

Drp8713 said:

Those worried should think back to the last two corrections.
January 2018 and September 2018, remember those? Nope, me neither. Sure I will see and forget about many more over the next 40 years.

No dodgy diseases then though.

Pretty sure it was inbetween Ebola and Zika.

Wasnt mentioned as an issue though.

Thrugelmir

Flim said:

..yep, always seems to go down a damn sight faster than it ever goes up...been in s&s isas for 7+ years now, and getting a little tired of the “downs”. 

Investing is made into real living breathing companies. Not market indices. When events occur. Then the market adjusts as the financial updates are announced. A string of companies have already reset trading forecasts considerably. Microsoft being the noticable one today. Companies are required to provide revenue and profit guidance where figures differ to those forecast by the market. As soon as Microsoft announces, then the assumption will be a hit on all their major suppliers. The impact ripples out and out and out further. 

pensionpawn

I'm down 4% in 4 days. I hope the same happens in reverse. If only I could move my pension being held (in cash) against my will by Utmost / Scottish Widows into emerging markets....

ffacoffipawb

pensionpawn said:

I'm down 4% in 4 days. I hope the same happens in reverse. If only I could move my pension being held (in cash) against my will by Utmost / Scottish Widows into emerging markets....

Big movements are very seldom upwards.

Audaxer

ffacoffipawb said:

Audaxer said:

ffacoffipawb said:

Dox said:

Anyone thinking of transferring from a DB scheme might do well to dwell on this thread!

Indeed. I wish I had taken my DB in full and not the PCLS as I have lost 10% of it already. It was meant to give a higher income from dividends than the pension commuted. Maybe it will, but I wish I could go back and take the extra £2k (£1600 net) pension instead of the £50k tax free cash which is now worth £45k. Of course in a year's time we might be OK but this time it seems different.

How much annual dividend income are you getting from the £50k that was invested? If you are getting at least £1,600 per year, which would match the extra pension, I would try not to worry too much about the capital fluctuations. I know its easier said than done, but the dividends should have a lot less volatility. 

Pretty much the £2,000 allowance. Six ETFs with about £8k in each.

In a GIA so taxable if over £2k.

So, you are getting £400 per year extra income by having taken the lump sum and investing it than you would have had if you had taken the full pension amount and no lump sum. Seems to me you made the right decision.

ffacoffipawb

Audaxer said:

ffacoffipawb said:

Audaxer said:

ffacoffipawb said:

Dox said:

Anyone thinking of transferring from a DB scheme might do well to dwell on this thread!

Indeed. I wish I had taken my DB in full and not the PCLS as I have lost 10% of it already. It was meant to give a higher income from dividends than the pension commuted. Maybe it will, but I wish I could go back and take the extra £2k (£1600 net) pension instead of the £50k tax free cash which is now worth £45k. Of course in a year's time we might be OK but this time it seems different.

How much annual dividend income are you getting from the £50k that was invested? If you are getting at least £1,600 per year, which would match the extra pension, I would try not to worry too much about the capital fluctuations. I know its easier said than done, but the dividends should have a lot less volatility. 

Pretty much the £2,000 allowance. Six ETFs with about £8k in each.

In a GIA so taxable if over £2k.

So, you are getting £400 per year extra income by having taken the lump sum and investing it than you would have had if you had taken the full pension amount and no lump sum. Seems to me you made the right decision.

Ask me again in 10 years! Not convinced yet.

michaels

I might need to retire soon. Had I retired a week ago my swr would be 10% higher than it would be today. This is why I remain uncomfortable with the whole swr concept. The same assets that I could have started drawing 30k pa for ever from last week now only support 27k for ever and yet had I started last week and drawn 2.5k already allegedly the 30k would still be safe....

Thrugelmir

michaels said:

I might need to retire soon. Had I retired a week ago my swr would be 10% higher than it would be today. This is why I remain uncomfortable with the whole swr concept. The same assets that I could have started drawing 30k pa for ever from last week now only support 27k for ever and yet had I started last week and drawn 2.5k already allegedly the 30k would still be safe....

How do you know that the assets would have lasted you for ever. 

Prism

michaels said:

I might need to retire soon. Had I retired a week ago my swr would be 10% higher than it would be today. This is why I remain uncomfortable with the whole swr concept. The same assets that I could have started drawing 30k pa for ever from last week now only support 27k for ever and yet had I started last week and drawn 2.5k already allegedly the 30k would still be safe....

If you had retired a week ago then it would be very unlikely that you would have been invested in stuff that fell 10% this week. VLS60 has fallen about 3.5% this week which is more in line with an early retirement risk level. Also the SWR concept for what its worth assumes that you will reduce your capital over time as you draw down. If you want to preserve it you need to draw even less.