Things to learn from this terrible situation.

veryintrigued

Genuinely some really interesting and candid replies here.

A very decent read.

tigerspill

Mothman said:

Just retired and a few months ago I was questioning myself as to whether I was crazy holding a 5yr income buffer in cash. Now I'm worried as whether a 5yr cash buffer will actualy be enough to see us through this

This is me as well.  Thought 5 years cash was too much.  Not any more.  I actually have a bit more through laziness.
This is the first crises in my investing time.  I always thought I was far too risk averse and that I "could do better".  I have learnt that I am doing OK and my funds haven't dropped as much as many and that allows me sleep at night.  So I think I have learnt that by and large, I am within my tolerance to risk.

Amateurretiree

Me:retired nurse of three years, DB covers essential household expenses.
DH retired last year SIPP in drawdown, 300000 in Cautious funds, 3 yrs non essential spends in cash.
Early on in this , spoke to our FA, we put the SIPP in Defensive funds, it is 11% down. Although this is still a loss, it’s not as much as it could have been. We feel ok about where we are, we understand we might not benefit as much when the ‘up’ comes, but we would rather lose less on the way down.
So far we are sleeping ok, long may it last!

One question for you very helpful experts, do you stop drawdown and use your emergency fund? I am worried about replacing that if we use it all. 

You would think there would be little discretionary spending, but it’s amazing how much you can spend online ! 

ProDave

My overall lesson is live for the moment, you don't know what is around the corner.

With that in mind, it might bring retirement forward for me, I was intending to retire in 3 years.  If the present lockdown goes on too long, with the loss of income that brings, then drawing my pension 3 years early may be the best way to solve that and throw in the towel.

Sailtheworld

Keeping your job is the main thing. Safety pots, too much debt, overdoing things in the good times etc. all sorted by maintaining an income.

Old_Lifer

My earnest hope is by the time this present crisis is over,    we will have  become a more considerate and careing society

I visit a local drop-in centre for the disabled and know a number of individuals who are  among the most vulnerable members of society,  all of whom receive carer-support funded by the Local Council.    Over the last several years  the support they receive has been steadily reduced year on year  and those who were receiving 50 hours of  care or more each week  now receive 10 hours a week or less  even though their needs have not changed,  as the Council ,  starved of funding by Central Government   cuts care  and moves the goalposts  so that fewer people qualify for support.    In contrast, we now have the situation where  suddenly there is no shortage of money and large volumes or it are being thrown around in all directions.    I do ask myself if the  deep cuts of recent years which have brought misery and hardship to the more vulnerable in our society have been strictly necessary.    How much longer will the promised review of social care continue to be postponed  and kicked into the long grass?

I also wonder how much longer those who are known to have had severe disabilities since birth and whose condition does not change will continue to receive periodic  near 50-page review  forms  for completion.   This only gives more stress to the disabled, families and carers.      If  I  inderstand correctly ,   reviews  in these circumstaces for those over retirement age were abolished  a year or two ago.

veryintrigued

Two months on from I thought this is worth a bump to see how people's thinking has evolved.

Also worth reminding ourselves what we may have learned.

kuepper

Don't worry about the number of accounts you have as long as you're maximising return on your savings

kinger101

veryintrigued said:

Also worth reminding ourselves what we may have learned.

That if it looks and sounds like a mop-haired gibbering idiot it probably is a mop-haired gibbering idiot.  

veryintrigued

One thing I've learned is how this situation has affected my circle of friends mental health very differently.

Money, house, job and health worries really have affected people I naively never expected them to.