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Cash Pot?

GenX0212 · 2025-03-07 20:22:08

Hi all, I have seen a few references to holding a 'cash' pot as part of your pension portfolio. The idea being that you draw from your cash pot in market downturn rather than take from your investment pot. I'm still not sure if I agree with this approach or not because when the markets are up then you have less investment…

Comments

MX5huggy Posts: 7,170 Forumite

10 March 2025 at 9:06AM

If you’ve decided on say 60/40 equity/cash (that’s not a recommendation just an example) then just take whatever drawdown amount you want from the pot to return the ratio to 60/40. When equity is up you will take mainly from equity, when it is down mostly from cash.

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