Dial down the risk?

SVaz

Other than £65k in STMM funds put aside for early retirement

My Sipps contain:

62% HSBC FTSE All World index

27% HSBC Global strategy Dynamic

11% in a 5 year Gilt ladder starting 2034, when I’ll be 68.  

Plans beyond that are vague,  maybe an annuity at 75 with part of it,  unless I die we won’t actually need any income from it so it would be a case of paying tax just to stick it in an ISA,  but my Wife would need the extra to make up for losing half my DB if she was widowed. 

Perhaps start swapping a bit from the Index fund into a Balanced fund over the next few years?  

I’ve looked at the AJ Bell balanced fund which is 62% equities,   is there a minimum and maximum for equities in Balanced funds or are they all very similar?  

Or do I not start de-risking for another 5 years?  

I feel I’ve got the next decade sorted out but after that it’s a lot of ‘what if’s’ . 

Bobziz

What are you trying to achieve i.e what is the risk that you're looking to adjust, capacity, tolerance etc ? Also, how are you planning to operate the gilt ladder, folding or rolling ?

SVaz

The Gilt ladder will be collapsing,  perhaps gifting the income to my Grandson,  who will be college age then. 

I want growth,in case money is needed for care needs in later years,  plus stability enough to purchase a joint annuity with say,  half, if rates are good at age 75. 

I feel that the risk beyond 10 years, is maybe a bit too high but don’t really know tbh.
I don’t want to play it too safe,  that’s why the idea of swapping gradually from high equities to a more traditional 60/40 approach,  which a balanced fund should do.  

I thought maybe 5% a year for the next few years  wouldn’t hinder growth too much . 

Albermarle

I’ve looked at the AJ Bell balanced fund which is 62% equities,   is there a minimum and maximum for equities in Balanced funds or are they all very similar?

Obviously 'Balanced' is a bit of a catch all phrase, but they do all hover around in the same area.
However some are fixed like Vanguard Lifestrategy 60 is always 60% equities.
Some have an element of management/risk targeting like HSBC Global Strategy balanced with currently 66% equity, but this is not static.