A question re SIPP drawdown and tax.

ivormonee

rothers said:

Croeso69 said:

pip895 said:

I don't like bonds atm so I would go 80%...

In that case why not VLS100? 

Pair it with 20% cash if you dont want a full 100% equity allocation.

Are bonds going to generate any growth going forward though?

I think the point of a bond component is also partly to diversify and smooth out some of the volatility. You may not get much growth and, clearly long term with potential interest rate rises, they will lose value but there will be some income to come from them. An alternative solution is go for the VLS80 and add in an additional layer of diversification in place of 20% bonds overall, such as a property IT and/ or commodity ETF. That will give you the diversification benefits and mitigate the risk of bond devaluation.