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VLS100 and 60
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Hopingforthesimplelife said:
One thing I have sometimes wondered - could risk be refined as a way of considering when you need to actually have access to the money?
Equities are considered a long term investment and high risk for money required in <10 years. My portfolio is split into 'buckets' and the asset allocation reflects when I plan to access the funds.
< 5 years = all cash
5-7 years = VLS20 (low risk)
7-10 years = VLS80 (high risk)
10+ years = VLS100 (highest risk).
I rebalance annually.
OH's wrapped portfolio is allocated differently as we plan to withdraw minimal amounts and only when appropriate to do so. He can afford to take more risk. Much higher %age equities and minimal bonds.
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DairyQueen said:Hopingforthesimplelife said:
One thing I have sometimes wondered - could risk be refined as a way of considering when you need to actually have access to the money?
Equities are considered a long term investment and high risk for money required in <10 years. My portfolio is split into 'buckets' and the asset allocation reflects when I plan to access the funds.
< 5 years = all cash
5-7 years = VLS20 (low risk)
7-10 years = VLS80 (high risk)
10+ years = VLS100 (highest risk).
I rebalance annually.
OH's wrapped portfolio is allocated differently as we plan to withdraw minimal amounts and only when appropriate to do so. He can afford to take more risk. Much higher %age equities and minimal bonds.
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Using the approach to risk outlined above, it looks like one could have several VLS in the portfolio and the allocation amount would depend on when you need the money. Say if you are planning to expand a house in 5 years you can put the money in VSL 20 pot.0
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AnotherJoe said:
Interesting. I've short circuited your approach. <5 years, cash, > 5 years equities
More difficult to establish risk timeframes when you are decades from retirement as, tbh, it's tough to determine how much you may need to access within a medium-term timeframe. With decades to go to retirement we adopted the same bucket approach as you.0 -
btcp said:Using the approach to risk outlined above, it looks like one could have several VLS in the portfolio and the allocation amount would depend on when you need the money. Say if you are planning to expand a house in 5 years you can put the money in VSL 20 pot.1
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DairyQueen said:btcp said:Using the approach to risk outlined above, it looks like one could have several VLS in the portfolio and the allocation amount would depend on when you need the money. Say if you are planning to expand a house in 5 years you can put the money in VSL 20 pot.
I suppose have good cash as a backup is a good option but how to find the balance. taking into a count that pension is also an investment you need to have a backup for that too in case the value drops.
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btcp said:DairyQueen said:btcp said:Using the approach to risk outlined above, it looks like one could have several VLS in the portfolio and the allocation amount would depend on when you need the money. Say if you are planning to expand a house in 5 years you can put the money in VSL 20 pot.1
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Trojan O/X held up very well in the recent downturn as an alternative to VLS20.4
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DairyQueen said:Hopingforthesimplelife said:
One thing I have sometimes wondered - could risk be refined as a way of considering when you need to actually have access to the money?
Equities are considered a long term investment and high risk for money required in <10 years. My portfolio is split into 'buckets' and the asset allocation reflects when I plan to access the funds.
< 5 years = all cash
5-7 years = VLS20 (low risk)
7-10 years = VLS80 (high risk)
10+ years = VLS100 (highest risk).
I rebalance annually.
OH's wrapped portfolio is allocated differently as we plan to withdraw minimal amounts and only when appropriate to do so. He can afford to take more risk. Much higher %age equities and minimal bonds.I am retiring in November
1 year cash, 1 year Premium bonds
Years 3-5 bonds heavy .. MyMap 3, an active bond fund and a wealth preservation trust PNL
Years 6-9 HSBC 60/40 and an active fund Baillie ManagedYear 10+ Lifestrategy 100%, active funds (SMT, fundsmith, Train etc .. you get the idea) , bit of gold, commodities and infra
Rebalance annually, OCF and platform/transaction fees 0.45%I think some may disagree but this makes me sleep well at night.2 -
1 year cash, 1 year Premium bonds0
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