pension

AlanP_2

dannybbb said:

@Bostonerimus1 i would have definitely done things differently given a time machine.

 Im not worried about a housing crash, im not thinking of selling and i dont have a mortgage on it so i see it as a good income generator for when the business dries up. cash is beating inflation at the moment thankfully. I just feel  that because of my age i do need to be defensive now even though given my time again would have done things very differetly. If i hit sell on the funds i have do they just sit in the sipp (at ii) as cash?

I agree with some of the other posters, your posts suggest that you are worried about your equities falling in value.

You say you need to be defensive now so you might sell. To the vast majority on here I would say a defensive portfolio is probably around 25-40% equities for long term growth and the balance spread across cash and bonds.

Personally I take no notice of external factors around politics etc. if I did I would never invest anything and would hoard all my cash under the mattress. The media never, ever report a good news story if they can help it. Misery sells copies and clicks, happiness doesn't.

How often have you seen reports that markets have crashed? Have you ever seen the follow up one that they have now recovered and are at an all time high?

If you aren't comfortable taking the level of volatility risk you currently are dial it back but recognise that you are increasing the level of risk you face from inflation by doing so.

dannybbb

@AlanP_2 thanks alan this is a good point.  i suppose i felt like the damage has been done in terms of inflation and now at least cash is in a good place as in its beating inflation.  at the end of the day im not considering retiring but my business is going to go from 80-100k to 10-20k per year. So im thinking i can live off the 850 rental and the interest from 500k cash whilst leaving the pension and the 250 cash isa to accumulate. I was thinking of putting 20k in a stocks isa in april. in my position what would you do with the cash?

dannybbb

@400ixl 250k is in isas. im not so much worried about the fluctuations as much as what to do for the best outcome given my age

dannybbb

@bostonerimus ill continue to work but im not a young person sadly, and my business is dying off.  I have the rental income and money in the business to keep a small salary and pension contributions going over the next 7 years though i reckon, maybe up to 10 with the cash i may earn too add to that total in the business. so probably look to semi retire next year and fully retire at 60

dannybbb

@kempiejon i can only put in 20 into an isa in april would you put more cash in to a GIA?

dannybbb

is been good to discuss this as i think  part of my reticence is not having a clear picture of when ill retire but  a gradual slowing from this year to 60, ie remaining self sufficient sounds like a realistic plan so at least i have a clearer timeline. now i just need to work out what works for a 10 year plan. do you think a target fun might be more suitable than hsbc that i have so that they are automatically adjusted?

kempiejon

dannybbb said:

@kempiejon i can only put in 20 into an isa in april would you put more cash in to a GIA?

You should do, as I said, what lets you sleep at night.
What I did when accumulating was have all my funds earmarked for early retirement in equities.
I'd add the maximum to my SIPP and fill an ISA each year then use GIA.
The capital gains and dividend tax limits on the GIA need watching for tax liabilities. It felt easier a few years ago but the allowances are tight now. Still worse problems to have.
Equities are my way to make my money work hard towards an early retirement goal.
I didn't think target funds, buckets etc are for me.
I made budget, then a plan of how much income I needed and how much of my earnings I could invest to reach those levels. I had a plan of where I wanted money invested with an idea of volatility and potential for appreciation. Mostly, global ETF/IT and UK FTSE shares. I have a pot for 2 to 3 years of drawdown money in cash/premium bonds and a smattering of fixed interest.