Reinvesting in equities after pension transfer

TimeToEatCake

After taking advice from this forum back in February after unplanned early retirement, I sold a proportion of equities when the market was at its peak to reduce risk (lucky timing!) and then transferred my largest DC pot of just over £500k (an occupational scheme) to a SIPP.  Timing of that also went quite well as it was a cash transfer completed a couple of days before Trump's "Liberation Day".  Other than moving approx. 25% of the pot to STMM and a bond fund, the rest has remained in cash since then, which meant I've avoided most of the market fall (there was some loss of around 3/4% while the transfer was being processed and the fund was still invested).

I now have a very large cash balance (~£375k) in this SIPP earning 3.25%.  Question now is when / how to reinvest in equities!  I know no-one has a crystal ball for the markets and they're likely to be volatile for some time, but I want to reinvest in equities as I'm happy with what I'm holding in cash/STMM/bonds overall (in pensions/ISAs/cash) and think the best place for this £375k is in equities as it won't be needed for the next 5 years.

Thinking of dripping in £25k/£30k per week over the next few months but curious what others would do? 

 

Marcon

TimeToEatCake said:

After taking advice from this forum back in February after unplanned early retirement, I sold a proportion of equities when the market was at its peak to reduce risk (lucky timing!) and then transferred my largest DC pot of just over £500k (an occupational scheme) to a SIPP.  Timing of that also went quite well as it was a cash transfer completed a couple of days before Trump's "Liberation Day".  Other than moving approx. 25% of the pot to STMM and a bond fund, the rest has remained in cash since then, which meant I've avoided most of the market fall (there was some loss of around 3/4% while the transfer was being processed and the fund was still invested).

I now have a very large cash balance (~£375k) in this SIPP earning 3.25%.  Question now is when / how to reinvest in equities!  I know no-one has a crystal ball for the markets and they're likely to be volatile for some time, but I want to reinvest in equities as I'm happy with what I'm holding in cash/STMM/bonds overall (in pensions/ISAs/cash) and think the best place for this £375k is in equities as it won't be needed for the next 5 years.

Thinking of dripping in £25k/£30k per week over the next few months but curious what others would do? 

 

What others would do would depend heavily on their attitude to risk and what other investments they hold, so not sure how interesting or helpful responses would be without all the relevant background info...

Notepad_Phil

TimeToEatCake said:

...
Thinking of dripping in £25k/£30k per week over the next few months but curious what others would do?

Personally, given where the money has come from, I'd put everything in as soon as possible. The last thing I'd want after a bit of luck with the timing would be to then lose out if the market zooms back up for whatever reason.

Pat38493

If you definitely don't need any of that money for 5 years, it should not stay all in cash, and guessing the best time to reinvest it is something that even professionals get wrong a lot.  Therefore the general DIY guidance that goes out is to reinvest it as soon as possible and ignore the news.

After that the question is - do you need all that money in 5 years from now?  Doubtful.  Therefore choose a mix of investments taking in to account the timing of when you will spend the money.  For me, anything that you don't need for 10 years or more should be 100% in equities in my personal opinion.