Given the current crisis should I sell shares?

adam_l

Just looking for some opinions...

I'm a 62 year old man and have another two or three years to run before retirement. I have a sipp invested in a vanguard lifestrategy and other ISA and savings also 
Invested in in vanguard schemes.

The total pot is currently around 430k having dropped 35k since the mini budget aka fiscal event. Scary.

The crisis search shows no sign of ending anytime soon and I have been thinking that maybe I should get out of shares before they go down even further and and invest at least some of the cash in something solid, maybe gold.

I am not investment savvy hence I chose vanguard as a do-it-for-you approach.
I know that in times of trouble most recommendation is to stick with Investments as the market will sort itself out over time. But given my age I I will need the money within 5 years.


I'll be very grateful for any opinions.


TIA. Adam

Sebo027

Retirement's 4% Rule Should be a Guide Not a Rule - AssetBuilder

grumiofoundation

What did you do in march 2020? 

masonic

Gold has a loss potential of at least 40% (the fall from its 2011 peak). It is currently at an all time high. Frying pan -> fire?

Are you intending to buy an annuity in 5 years, or will you keep most of it invested?

MX5huggy

Do you really need access to £430k in 5 years time? I expect not maybe £20 to £40k ? Most of this money you probably intend not to spend for 10 years plus, investing over 10 years is generally considered optimal.

adam_l

Yes - 20 T2 30K per year with probably suffice as I don't have a lavish lifestyle. 

The original plan was to buy an annuity on retirement. That's what one is encouraged to do at least.

Are there other ways to deal with it? 

adam_l

grumiofoundation said:

What did you do in march 2020? 

Not sure what you mean?

adam_l

masonic said:

Gold has a loss potential of at least 40% (the fall from its 2011 peak). It is currently at an all time high. Frying pan -> fire?

Are you intending to buy an annuity in 5 years, or will you keep most of it invested?

Ok thanks for that tip! Not gold then. A friend of mine invests  in rare whisky but I'm not sure about that :-)

masonic

adam_l said:

Yes - 20 T2 30K per year with probably suffice as I don't have a lavish lifestyle. 

The original plan was to buy an annuity on retirement. That's what one is encouraged to do at least.

Are there other ways to deal with it? 

You can deal with it by keeping a buffer of low risk investments (or cash) to cover you for a few years, and keep the remainder invested. If you are drawing down in a 'good' year, take it from the invested funds. If your investment has fallen, say 20+%, then take it from the low risk bucket. When markets recover, replenish your low risk bucket.

Annuities are much better value now than a year ago, so it could be a good option, at least for your essential income - for that you do need your capital in lower risk investments in your last few years.

Which Vanguard Lifestrategy fund are you in?

Linton

adam_l said:

grumiofoundation said:

What did you do in march 2020? 

Not sure what you mean?

At the start of Covid the markets fell by more than they have in the past few months.If you did not do anything then why do you want to do something now?