Investment Allocation in Retirement

Bostonerimus1

pip895 said:

Albermarle said:

pip895 said:

My OH & I retired early, He is getting his SP but I won't get mine for some years.  Our investment pot (SIPP, ISA + a BTL etc.) has gone down in value about 20% from its peak valuation in August 21.  Not unduly worried about that, I just got to wondering about asset allocation.  In particular I think my bond allocation is low, although perhaps most of the Wealth Preservation (mainly PNL) and even the BTL could also be considered fixed interest?  
I am minded to transfer more cash and some of the WP to bonds. What are peoples thoughts. Does the Equity allocation look OK - Its been a long term decision to overweight the UK - It probably hasn't served me particularly well but I'm sticking with it.
(Our home is unmortgaged and not included in this analysis)

Without a full analysis it is difficult to be sure but a 20% drop since August 2021 seems a lot for this portfolio?
If you were a lot heavier in bonds, I could believe it more easily.
For sure August 2021 to December 2021 was a kind of peak period, but I am surprised to see a drop more than 10% to today. Have you worked out the drop of each portion ?

Your right to question that - I didn't exclude the withdrawals we made in those figures. If I add those back in then the drop was only 12%.  That's probably on the high side because the equity (particularly the UK part) is overweight small companies and the holding in SMT didn't help much either!

I would question overweighting small cap in your equities as that will increase your risk. Equities carry risk and I've seen people increase that risk reaching for returns to fund some pre-determined income goal...and that can lead to large losses. If I was to overweight anything in retirement I would tend towards dividend stocks. Don't over think things, stick to cap weighted equity allocations.