Late 2025 low risk changes to ISA and SIPP

InvesterJones

TheTelltaleChart said:

With the power to choose between issuing cash or gilts, the UK also has control of its own interest rates. If bond buyers refuse to buy gilts at the offered rates, they will be forced to accept cash instead, which pays the base rate set by the Bank of England. So high interest rates can't be insisted on by bond markets.

I thought the shoe was on the other foot - bond buyers aren't forced to accept cash at all, it's rather the treasury that has to accept a lower price for the offered rate if buyers don't like it (thus the effective rate increases).

HedgehogRulez

Moving my equities into cash 

leosayer

OP your post reads to me that you are concerned about sequence risk which is only natural as you approach retirement.

I think it's more sensible to avoid trying to predict the stock market and instead ask yourself how long can you last before you become forced to sell your equity holdings to meet your retirement living expenses if prices fall significantly below what they are today? 

That may lead you to decide, for example, that you want to hold 7 years of spending in low risk assets. Once you add in any further savings you make over the next 3-4 years that should tell you what equity/bond/cash allocation is right for you.