Is a 60/40 fund out of date for a Retirement

plumb1_2

Hi all
I have a Royal London pension £299,000. RLP Goverend Enhanced pot, which I think is roughly 60/40
Also I have a Vanguard sipp , it was in 100 equity, but 4 months ago moved it into the retirement fund 2030, which is roughly 60/40. Value £85,000. 

My ss isa £115000  I moved £80k of that into the vanguard 60/40 fund and £35k into MM fund
cash isa £24,00
Btl rental income £7000 p/y and £200k equity 
mortgage free own house 
I also get the SP £203.00 p/w
Small annuity £1100 p/y
Cash in the bank for everyday spending £10k which is topped up monthly by SP and annuity 
Working max 2days a week,income about £7k
mrs plum gets SP and has £90k plus in ss isa and PB
and local government pension of £1600 p/y

Aged 68 
so my question is a 60/40 fund a sensible choice given life expectancy is about 82. As iam not in the best of health or Mrs Plum

Oh and at this moment we’ve no no need to start withdrawing from my pensions 

af1963

On these numbers, you have lots of flexibility and little need to worry about the exact details of the balance of your investments. 60/40 stocks and bonds looks reasonable.

If you're living currently on 2 SPs plus 1k annuity plus 7k rental income (all of which can continue) plus 7k from work, unless I *really* enjoyed my work I'd be looking at stopping and taking that 7k from the pensions. Especially with health issues.

MK62

TBH, it's all relative to your age, personal circumstances, goals and attitude to risk - what is sensible or suitable for one may not be for others.

That said, personally I'd view a 60/40 fund as a reasonable starting point for a pension going into drawdown if a single fund was the aim.......perhaps a bit racy for an 85yo though, and too conservative for a 30yo......but then that's a generalisation and won't be applicable in all cases.

dunstonh

Is a 60/40 fund out of date for a Retirement

No.   Although it really depends on what you are putting in the 60% and the 40%.

plumb1_2

dunstonh said:

Is a 60/40 fund out of date for a Retirement

No.   Although it really depends on what you are putting in the 60% and the 40%.

Only putting £2880 into the vanguard sipp
The approximately £ 5 to 7k from earned income goes into my ss isa
As my rental income is not classed as earned income 

kempiejon

plumb1_2 said:

Aged 68 
so my question is a 60/40 fund a sensible choice given life expectancy is about 82. As iam not in the best of health or Mrs Plum

Oh and at this moment we’ve no no need to start withdrawing from my pensions 

Mortgage free and you've a base income covering all your current needs, you've cash, property, PBs, ISAs, cash and pension you're not using. As said if you're not getting a lot from work you probably don't need to do it. Do you want to maximise your fun with that pot or leave a large inheritance?

I'd take a view on my total asset allocation across all sources and deaccumulation plan.

plumb1_2

dunstonh said:

Is a 60/40 fund out of date for a Retirement

No.   Although it really depends on what you are putting in the 60% and the 40%.

What in your opinion is the better fund Royal London governed or vanguard 2030

plumb1_2

kempiejon said:

plumb1_2 said:

Aged 68 
so my question is a 60/40 fund a sensible choice given life expectancy is about 82. As iam not in the best of health or Mrs Plum

Oh and at this moment we’ve no no need to start withdrawing from my pensions 

Mortgage free and you've a base income covering all your current needs, you've cash, property, PBs, ISAs, cash and pension you're not using. As said if you're not getting a lot from work you probably don't need to do it. Do you want to maximise your fun with that pot or leave a large inheritance?

I'd take a view on my total asset allocation across all sources and deaccumulation plan.

That’s is an issue for me with carrying on working, yes I should be putting my feet up, but I do enjoy. It gives me time away from Mrs Plum 😊
And I also work with a colleague, who I have done so for over 20 yrs. And have a laugh and natter..( good for my mental health). I call him my 67 yr old apprentice.
And most probably leave 70% of the pots ti inheritance, unless care home fees kick in, hopefully not.

Planing ? That’s where I fall short. I can’t seem to envisage the future in regards numbers/ income etc

dunstonh

plumb1_2 said:

dunstonh said:

Is a 60/40 fund out of date for a Retirement

No.   Although it really depends on what you are putting in the 60% and the 40%.

What in your opinion is the better fund Royal London governed or vanguard 2030

Neither would be my preference.  However, if you are limiting it to those two I would say RL is better on the defensive side and Vanguard on Growth side.

Alexland

plumb1_2 said:

Aged 68 
so my question is a 60/40 fund a sensible choice given life expectancy is about 82. As iam not in the best of health or Mrs Plum

Remember your life expectancy goes up as you get older because you didn't die young. According to some old date from the ONS the average 68 year old male will live to 86 with a 25% chance of 92 and 2.5% chance of 100.

Now bonds yields are much higher there is less long term opportunity cost to being diversified so having your investments 60/40 (alongside some other stable income streams) sounds like you are generally in the right ballpark provided you are happy to see 25%ish valuation crashes?

If you health is not good would that give you any advantage on lifetime annuity rates?

kempiejon

plumb1_2 said:
That’s is an issue for me with carrying on working, yes I should be putting my feet up, but I do enjoy. It gives me time away from Mrs Plum 😊

And I also work with a colleague, who I have done so for over 20 yrs. And have a laugh and natter..( good for my mental health). I call him my 67 yr old apprentice.
And most probably leave 70% of the pots ti inheritance, unless care home fees kick in, hopefully not.

Planing ? That’s where I fall short. I can’t seem to envisage the future in regards numbers/ income etc

If work brings pleasure and human interaction and financially it's not essential, may as well crack.
If you don't need the surplus 70% and want to maximise an inheritance 60:40 probably won't increase in value as much as higher proportion global equities - with the oft mentioned volatility. Your total wealth, income assets SP and so on give a good grounding but only you can judge what feels too risky with your investments and asset allocation.
Those with the accumulator mindset struggle with pursuing an active deaccumulation plan, those that get affirmation from a role like to keep that.