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De-risking

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  • Pat38493
    Pat38493 Posts: 3,529 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    saucer said:
    cfw1994 said:
    If you can’t emotionally weather a crash now, then drop a chunk of your funds into the MMF.  Sleep easier.

    If markets drop 10%, buy back in with some of it.
    If they drop another 10%, repeat.

    🤷‍♂️
    Now’s your chance…
    Interesting point.  There's an argument that I should sell some of my MM fund in my provider to cash, so that I can immediately buy in to equities if they reach say 20% drawdown.  I have not actually handed my notice in at work yet but I've told them I'm probably going "some time this year".  If was the risk taking type I would probably move some of my cash into equities at 20% down and 30% down.  Risk is that the market carries on going down for 2 years.
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