Coming Up to Retirement - Portfolio Changes

leosayer

I'm another who favours an annuity in this case.

A joint life, index linked annuity paying c. £21k per year would cost maybe £500k and would leave the OP and partner in the position of having all their spending needs met by guaranteed income once the OP hits age 67.

This leaves the OP with over £800k to invest and/or spend from now until age 66.

kempiejon

davethebb said:

My plan is to dilute the global tracker with the Global Income fund. This will not only dilute the geographical allocation away from the US but also the type of equity.

Is your understanding the the total amount of your portfolio growth remains similar with such an action? I have income investments and growth investments and index funds and for the past 15 years the total return has been better in a global tracker. Income is easy if not optimal.
I started investing in income early in my investing career so will probably rebalance, I'll sell to reinvest or use for income from capital growth.

FIREDreamer

Annuitise and chill 💯

Linton

kempiejon said:

davethebb said:

My plan is to dilute the global tracker with the Global Income fund. This will not only dilute the geographical allocation away from the US but also the type of equity.

Is your understanding the the total amount of your portfolio growth remains similar with such an action? I have income investments and growth investments and index funds and for the past 15 years the total return has been better in a global tracker. Income is easy if not optimal.
I started investing in income early in my investing career so will probably rebalance, I'll sell to reinvest or use for income from capital growth.

Recency bias. Income funds tend to be more value oriented than growth. Over the past good 15 years growth has out performed. In the previous 10 bad years value was better. If either consistently  provided higher returns market forces should adjust prices to remove the difference.

over the very long term one would expect both to perform much the same.

in any case long term growth is often not the main concern of retirees who may worry more about short/medium term income.

Cobbler_tone

Well on the back of this forum I moved the 40% of my DC fund from UK equities to a World equity index fund, which is 70% US. The first few days have worked out well but ultimately I’ll have no idea if I end up better off or not. I can see why most people leave them alone. The talk you read on here is most definitely the exception as opposed to the norm. I’d wager a bet that there are a disproportionate amount of people on here that almost check their fund daily, which probably isn’t the healthiest routine.
When I move into my last 6 months at the turn of the year I’ll probably move it to something else. It’s not a determining factor in my retirement decision making. I have a target in mind but it’s just that.

I’m sure the Nvidia results today will see a swing, potentially downwards.

BobR64

Scroll to "Non-pension annuities" on this page: https://www.aviva.co.uk/retirement/pension-annuity/knowledge-centre/what-is-an-annuity/

It does suggest that fixed terms are available.