Cash out? Enough is enough

HedgehogRulez

Still fun to time the pending market crash though! You have enough, might as well gamble a bit 

NormalNorman

bjorn_toby_wilde said:

Mistermeaner said:

Thanks all for thoughts and input. I put in a sell order today for 300k to be reinvested in a money market fund, at least for now while I look properly at the funds available in my pension (it’s a work scheme not a sipp so limited fund range). That will give me a 70% equity portfolio which seems reasonable given I’ll hopefully be accessing it in 10-11 years 

with our other investments we still have over 1mil invested in equities so maintaining a decent level of exposure there but think I’ll be much more comfortable with that 300k being ‘safe’ - inflation risk aside that’s the mortgage paid off (if we still have it in 10yesrs) and a good few years of retirement covered 

we are investing more in isas outside of the pension due to the LSA and to cover early retirement - it’s hard though as I still want to Sal sac to below 100k to avoid the punitive marginal tax and also theres 

I wonder if rach in accounts will do something revolutionary around pension freedoms to release all that lovely cash into the economy 

That seems a sensible ratio given your age and objectives.

Have you considered increasing contributions to your wife’s pension? My salary was always higher than my wife’s and something we never really considered was the effect of that imbalance in retirement. I will have relatively little headroom, once I reach SPA, to withdraw from my SIPP before I hit the higher rate tax threshold. If we had put more into my wife’s pension it could have been more tax efficient.

Indeed, that’s what we are currently doing. Taking best advantage of my current schemes whilst putting in the maximum possible for wife. It’s tough at times but early retirement is within sight. So reckon she will pay little tax. Briefly eight years tax free drawdown plus lump sum before a couple of small DBs and SP kick with a buffer in the sipp for the unexpected/one offs. Money her ISAs too. 

Juno_Moneta

Roger175 said:

A subject very close to my mind .... once you have won the game, why do you need to keep taking the risk?

Our circumstances (wife and I) are different insofar as we are recently retired, but we have certainly reduced risk, given that we have achieved our objective and don't need the worry of having to win the game all over again in the event of a crash. We all know one is coming at some point - be it 2 week, 2 months, 2 years, 5 years...does it matter when, it will happen, history tells us this and if you've achieved your objective, you would be daft not to do a bit of de-risking - remember if markets crash 50%, they need a 100% rise to put you back to where you were.

Interesting thread this one. I am also wondering what is enough for a good retirement. It’s easy to look at it from a purely statistical point of view, considering cost of living (although there is always random unpredictable stuff isn’t there, like your boiler needs replacing) and then allowing for inflation. 

And then there are regulatory considerations like limits and rules around SIPPs, which can change in any budget. 

Detail aside, I’ve always had a number in my head around £1.25m which I reckon is a solid value to enter retirement and drawdown with. 

Everyone’s situation and needs is different, but that’s a number where I would personally think I had enough.

Anyway still trying to win the game. Good luck with yours Mistermeaner

RogerPensionGuy

Roger175 said:

A subject very close to my mind .... once you have won the game, why do you need to keep taking the risk?

Our circumstances (wife and I) are different insofar as we are recently retired, but we have certainly reduced risk, given that we have achieved our objective and don't need the worry of having to win the game all over again in the event of a crash. We all know one is coming at some point - be it 2 week, 2 months, 2 years, 5 years...does it matter when, it will happen, history tells us this and if you've achieved your objective, you would be daft not to do a bit of de-risking - remember if markets crash 50%, they need a 100% rise to put you back to where you were.

A sobering post and I have very similar thoughts in my little head. 

After reading lots about sequencing risk, I think about sequences as a two sided item, the ups & the downs need to be well concidered.

I tend to agree in the younger years, maybe up to age 50ish just plough deep in to global markets, but after 50ish maybe a good time to bank value if personal goals have essentially been achieved. 

One of my deepest fears was being deep in very toppy stockmarkets after 55ish and enduring a monster correction and potentially changing my lifestyle & plans to manage a long downturn.

My guess is we won't(probably) ever see a 1929/1930s bear market, but I won't be surprised if we endure another DotCom or GFC down swing and bear market and I certainly didn't want to endure this at plus 60 years of age, so I moderated my investments to hopefully mitigate such a similar dip & troff.

Below is a link for info as I feel it's entirely possible it will be repeated or similar and I don't like the recover time. 

***

https://www.investopedia.com/terms/d/dotcom-bubble.asp#:~:text=Many dotcom stocks went bankrupt,Key Takeaways

Aylesbury_Duck

I'm in the process of rebalancing my DCs and ISAs which had been quite aggressively invested in equities - 100% in the case of one of my DCs making up about a third of my DC pensions.  Once all done, I'll have something like 60% in equities across all my savings, investments and DC pensions, plus some DB pension.  At nearly 53 and with a plan to stop working at 57, that feels about right.

Cus

I've called the top of the market as of yesterday and have liquidated a lot of equity investments into cash.  Just my duty to let others know 😁

artyboy

Cus said:

I've called the top of the market as of yesterday and have liquidated a lot of equity investments into cash.  Just my duty to let others know 😁

I did the same on Monday. All in CSH2. Time will tell if I'm right or not, but there already seems to be a shift starting away from tech and toward more traditional stocks. Banks for example seem to be winners right now...

Bobziz

And at what point will you both get back in ?

Cus

Bobziz said:

And at what point will you both get back in ?

That's easy, when it bottoms

Bobziz

Ah of course. If you could let the rest of us know that happens it would be most helpful.