is this the time to transfer multiasset funds to a cash ISA?

donmaico

Alexland said:

donmaico said:

in other words insufficient exposure to stocks and shares? 

Maybe I don't know your circumstances so cannot really comment but sometimes with lower risk investments you have to ask if the reduced volatility is really worth the reduced return. Personally I wouldn't ever expect to invest at less than a balanced asset allocation. If I wanted to be more cautious with my overall net worth then I would hold more in cash which might provide a better return without the risks that come from being too heavy in bonds.

when you say balanced are you implying 50/50 bonds /stock or 33/33/33 cash/ bonds /stock? I am more or less 30/ 45/25.My circumstances are that i am retired and have been trying to build a modest nest egg in case of eventualities. I can live on the income I receive so the money I put aside is with  regard to having one eye in the future.The big fear for me is the D word - depression which some seem to think is just round  the corner.In that case cash or maybe gold would be the safest  option 

Alexland

donmaico said:

when you say balanced are you implying 50/50 bonds /stock or 33/33/33 cash/ bonds /stock? I am more or less 30/ 45/25.My circumstances are that i am retired and have been trying to build a modest nest egg in case of eventualities. I can live on the income I receive so the money I put aside is with  regard to having one eye in the future.The big fear for me is the D word - depression which some seem to think is just round  the corner.In that case cash or maybe gold would be the safest  option 

The exact ratios are up to you to determine but generally if you have a cash buffer to last around 3 years (it would last a bit longer if also taking cash distributions from the investments) then investing the reminder at a ratio of around 50/50, or maybe a bit more in equities given the situation, has preserved it from inflation over the long term. I'm an optimist and choose to back the resilience and determination the world will have to recover from this situation once the virus is under control.

donmaico

Alexland said:

donmaico said:

when you say balanced are you implying 50/50 bonds /stock or 33/33/33 cash/ bonds /stock? I am more or less 30/ 45/25.My circumstances are that i am retired and have been trying to build a modest nest egg in case of eventualities. I can live on the income I receive so the money I put aside is with  regard to having one eye in the future.The big fear for me is the D word - depression which some seem to think is just round  the corner.In that case cash or maybe gold would be the safest  option 

The exact ratios are up to you to determine but generally if you have a cash buffer to last around 3 years (it would last a bit longer if also taking cash distributions from the investments) then investing the reminder at a ratio of around 50/50, or maybe a bit more in equities given the situation, has preserved it from inflation over the long term. I'm an optimist and choose to back the resilience and determination the world will have to recover from this situation once the virus is under control.

Mind youwith all the talk of a depression round the corner it is difficult to feel optimistic

Audaxer

donmaico said:

normally i would think leave well alone and when the crisis hits its peak that is the time to increase investment in the hopes funds recover but predictions are at best difficult to make. i could end up  losing a lot of money which, obviously, i would rather avoid

I would say that as you are retired and making regular contributions to your portfolio, I would keep making regular contributions at the lower prices of the funds at present as it will boost the recovery of your funds when they do start to recover. If you cannot afford to, or prefer not to, continue with regular contributions at this time, that is okay, but I would sit tight rather than sell your current investments, unless you think you will need the money in the near future. 

Grandst2

If -13% worries you then the funds you have chosen are too high risk for you, the markets have gone down much further in the last 20 years than the present bear market.

Alexland

donmaico said:

Mind youwith all the talk of a depression round the corner it is difficult to feel optimistic

Sure but if you look at anything for long enough you get paranoid about it.