Alternative to Vanguard LS40 inc. in a GIA?

Audaxer

BPL said:

Thanks for your reply. Yes i have cash but this is the rung above that so maybe it shouldn't be in cash. The difficulty is finding an investment to fulfill this role. So if bonds are falling doesn't the but the dip apply. Btw i don't believe in timing the market but it's difficult not to in decumulation phase after FIRE. 

If I understand you correctly, Rung 1 is cash which you are going to spend in years 1 and 2, and Rung 2 is the VLS40 or alternative safe investment will be spent in years 3, 4 and 5? Is that to supplement your DB pension income? If so I think in your case it could be better supplementing your DB pension with drawdown of up to say 3.5% per year, from your SIPP and S&S ISA  if that would cover your income. You could then hold up to the 5 years cash (what you currently have as Rungs 1 and 2) as a cash buffer. Just my thoughts.

BPL

That's an interesting way of looking at it. SIPPs are good for inheritance though but SWR of 3.5% would dent them & could be in 100% equities.. I was following the spend/bed and ISA the taxable account first line. Are there no less volatile investment out there any more? Inflation could erode my cash if it carries on especially if 5 years. Bonds used to be a non correlated hedge for equities in a crash. I guess I'm not there only ones stuck here.