So close, we can smell mortgage freedom!

LadyWithAPlan

themadvix said:

Thanks @LadyWithAPlan, that’s really helpful. Are there recommended allocations for balancing/derisking as you get nearer? I may well retire before then (I hope so!), but a) I was a late starter with my pension and b) I like what I do and can do it from anywhere, so I’m not too worried about retiring (entirely, in any case!)

What the target retirement funds do is shift the balance from having say 100% shares to 50% or more of bonds  even 20% shares/80% bonds as you near retirement as bonds are seen as more stable - especially if they are  decent govt backed  eg US  so pay a small fixed but stable rate (as opposed to say Russi**n govt bonds right now! - so less upside but less downside

So the lifestrategy ones have say 80% shares 20% bonds or 60% shares 40% bonds,
However if you looking at retirement  2050 I would not be buying bonds right now - and indeed I am not buying bonds right now and I plan to retire maybe a decade before you if not more..

By 2030 I am sure there will be Vanguard funds that are ESG and have a bond component OR you can buy things like
Vanguard global bond fund or Euro Investment Grade Bond Index Fund - may hit an issue with ESG
or Govt bonds - but of course you are investing in the country eg US Treasury bonds or Uk Gilts so they may be using fossil fuel - I am not sure how you choose there.
Corporate bonds are company debt - and Government bonds are country bonds.

You may also want to look at accumulation (so any dividends from the companies in the ESG are automatically reinvested in the same fund) OR income  which means dividends are paid in cash into your Sipp. So you can choose where to invest that OR eventually you can use the dividend income to withdraw and leave your golden goose egg money in. 
If you are a decade out or so accumulation funds probably easier and move to income as you go.
Although I know some people actively choose to buy income funds so they can guage what dividends and income they are getting monthly.
Dividends can be paid monthly, quarterly, yearly etc and of course as with the pandemic a company can choose to not pay dividends one year but invest in itself or keep the balance sheet safe .

But read, breathe, plan and keep saving thats the best thing !!

QueenJess

There is no good way to ethical funds in my opinion. Many are greenwashing and none really cut the mustard for me. I do have some invested in the Vanguard ESG fund though. I just hope these things improve in future. Just my opinion of course!

Anyway, you don’t have to de-risk close to retirement, although of course traditionally that is what people have done. It depends on your risk appetite and how you are planning to use your funds in retirement. Eg if you are buying an annuity or if you are doing this yourself and the period over which you are extracting funds etc.

Try this calculator (https://calculators.moneytothemasses.com/investment) to show you a proposed split between equities and bonds (and also by country) based simply on your age. From memory I think age 40 gives you 40% bonds and it clicks up by 1% for each year after that. The country splits again are simply one way of doing it, but most of the global funds will already give you global exposure. It’s important to get global exposure of some sort although the Vanguard funds tend to differ on their weighting with the generic global ones having a high weighting in the US (they are based on the real world weighting of market cap) and the target funds overweight in the UK compared to market cap. 

Best not to overthink too much and keep it simple IMO. Not sure if this helps or not! I’ve spent quite a while thinking about my own portfolio.

themadvix

Evening all,

Thanks for all your thoughts on pensions. I will definitely be sticking with stocks for the time being @LadyWithAPlan, but know that it should shift towards bonds etc. later. @QueenJess, thanks for the calculator and the info - had no idea it would start shifting so early - that seems a bit too soon, but who knows. I may be able to find info on the split in my current Nest fund too I suppose. @LadyWithAPlan, that's what I'm hoping - that VG will have ESG retirement funds (with reasonable fees). @QueenJess, I agree about greenwashing, but it is specific about what it is not invested in and that includes fossil fuels. I think that's the best we can do while still being invested in the stock market at the moment and it's all I've got with Nest.

@earthgirl2 thanks - I'm really pleased with prolific!

Just had a madly busy Olio evening - I think the Wednesday evening ladies like to have a clear out - I had nappies, wood shavings, curry sauce, stock pots, even beer (kept that!) as well as the usual pastries, bread and fresh bits. Almost all of it gone/allocated now though, so I've left the bits for tonight out and come up to bed (actually office and am currently being kneaded by B&W cat who is loving the fact I've not yet shut him out of bedroom!). We've got a jar of curry sauce (either for a lazy dinner or more likely when we go to Devon), pastries, noodles for stir fry dinner tomorrow, potato dauphinoise (in freezer), the aforementioned beer, some shortbread, beef jerky and other stuff (within my 10% allowance). 

Night all!

QueenJess

I agree about the early shift and especially as I don’t intend to take an annuity and will withdraw amounts myself. If it helps I have gone towards a 70:30 split instead of 60:40 and don’t intend to change this anytime soon.

To de-risk you can also keep 2+ years of expenses in cash instead of swapping to bonds if you go for withdrawing money yourself.

LadyWithAPlan

I am 10-15 years out and my bond % is very small in my SIPP like 3% . Having said that I do have a DB pension that kicks in 8 years  if I choose to take it then - not planning to - and  so they will have given me stability that way.

Plus of course State Pension at 67 should help with future planning as well which means you can use the SIPP as gravy on top as it were and take a higher risk in shares.

@QueenJess indeed is correct that a large cash EF can help and stops you having to cash in when markets fluctute. I also agree that calculator is way too cautious however individula circumstances differ. If you have a paid for house and no debts and a EF for car replacements etc then you can afford to take more volatility in your pension.

themadvix

Morning all,

Thanks @LadyWithAPlan - a good point about other pensions etc. Lots to think about, but nothing too major. I'll get it opened with some money from August's payday and then start the transfer.

I have spent 3 hours at the allotment this morning and it's looking a lot tidier. Two beds now completely clear of potatoes, more radishes sown, leeks planted and I moved and replanted the red onions that hadn't bothered to do anything first time round - the sets aren't rotten so I think they just weren't happy where they were. We'll see what happens. Everything watered, courgettes and squashes pruned and it's all looking much better. A few more squashes beginning to form too, which is good (one is size of a galia melon, but nothing else has grown beyond a golf ball size). Another courgette harvested, but have an Olio friend coming for that soon. Lots more potatoes too, some plums, a couple of tiny sunflowers (I do mean tiny - their heads are a couple of inches across!), the first test cob of baby corn (needs a bit longer) and I picked some blackberries. It was super busy down there this morning - loads of people chatting and stopping to say hi.

I'm exhausted now and looking forward to leftover fish pie for lunch. Mum, Sis and Niece are popping by at some point to collect some Olio bits, so looking forward to seeing them as they've been away for a few days. No actual work, but my hour for Cambridge to do at some point.

MS things:
* RM survey item has arrived - the first of this stint!
* Much free food - Olio and allotment and blackberries
* PA survey
* HW and clicks - no wins today
* Dinner of stir fry will use Olio noodles and courgette, among other things

Gratitudes:
* Friendly people down at the allotment 
* Baby corn
* No dig - one of the other plot holders was saying how scorched their plants are even with watering - the no-dig method retains water better and I've only had to water once or twice a week for established plants, even in the heatwaves (and when I was ill during the first, it went a whole week), and things have done well (exception being peas, but they weren't more or less over when I abandoned them).

Have a good afternoon all!

Cheery_Daff

Well done on your allotmenting! I'm going to have a serious rethink of my garden next year - I always plan more than I keep on top of, and the last two years I've pretty much only harvested soft fruit 🙄

themadvix

Thanks Cheery. Nothing wrong with lots of soft fruit! I think it probably helps having a constrained area - I can't get too carried away with ideas. And the no-dig has been a godsend - so much less effort!

themadvix

Well I had some lunch, had a nap and then was briefly visited by Mum, Sis and Niece, but Niece was definitely not feeling good - very grizzly and uncomfortable poor thing, so they didn't stop for more than 5 mins. Will give Mum a ring in a bit to hear how their trip was. 

Have just done my Cambridge work for the day and submitted a timesheet as boss is away tomorrow. Not for much, but better to get it in my account than in theirs. And I suspect things might start to pick up from next week, which will allow me to get another pay day in before month end.

Mr MV and I may attempt to go swimming tonight - he's got access to the local pool with his gym membership, but I will have to pay. However, given it's rather hot here still and I'm aching from the allotment work, it should be quite soothing - if we get there - he's got to get away from the office on time and pop to his parents before heading home.

savingholmes

Hope the swimming went well.