ready to retire & need to know her to invest

Albermarle

jimboger1 said:

dunstonh

ive had a look around at some funds and there are quite a few that say over a 5 year period have achieved well over 5%

5 years is a shortish period in investing terms. 
However 5% nominal return is not over ambitious.
5% above inflation is harder to achieve through all the ups and downs over 20 years or so, but not impossible if you are happy with a bumpy ride. 

jimboger1

Albermarle said:

jimboger1 said:

dunstonh

ive had a look around at some funds and there are quite a few that say over a 5 year period have achieved well over 5%

5 years is a shortish period in investing terms. 
However 5% nominal return is not over ambitious.
5% above inflation is harder to achieve through all the ups and downs over 20 years or so, but not impossible if you are happy with a bumpy ride. 

thanks again 

BikingBud

Vitor said:

With £500k, a sustainable starting withdrawal is typically closer to 3–4 percent than 5 percent if you want the money to last, especially if markets fall early on.

How do you work that out without knowing how old the OP is and how long it might be required to last?

QrizB

BikingBud said:

Vitor said:

With £500k, a sustainable starting withdrawal is typically closer to 3–4 percent than 5 percent if you want the money to last, especially if markets fall early on.

How do you work that out without knowing how old the OP is and how long it might be required to last?

OP is old enough to access their pension, so over 55.

3-4% is a wide enough range to cover most non-retired over-55s.

BikingBud

So that gives a bottom limit, but you still don't know how long it might need to last. 

I am only observing that sometimes assumptions that are made on here whilst well intended might not actually relate to reality.

In fact the post I quoted seemed to miss the point entirely it was not about drawing down at 5% it was about growing at 5%:

jimboger1 said:

hi all
im looking to retire at the end of 2026 
my current pension is with Scottish Widows and I'd like to invest what I have (around £500,000) to get around 5% growth and allow me flexible drawdowns 
thanks

Those are quite distinct and very different.

And the comment is still not sustainable without understanding how long the OP wishes to effect the draw down over.

Yes other information has since come to light but I feel people should be careful about surmising rather than clarifying.

QrizB

BikingBud said:

So that gives a bottom limit, but you still don't know how long it might need to last.

The rest of the OP's life.

Since no-one knows whether the OP will die tomorrow (I hope they don't) or live to be 115, all we can do is share the modelled outcomes that work for almost everyone.

BikingBud said:

And the comment is still not sustainable without understanding how long the OP wishes to effect the draw down over.

There's at least one forum regular who, once a month or so, has to tell someone "I can give you an exact answer to your question if you can share one more data point - that date you will die". You seem to be looking for a similar degree of confidence.

BikingBud

Did you have any thoughts about surmising and answering the question that wasn't asked and therefore didn't need that information?
 
But to address the unasked question, the OP might currently be over 55 perhaps even 65 and has other assets on hand to which they can draw so only need the funding line to last 12-15 years.  

Did any body seek to ascertain that detail before providing an answer that didn't address the question that was asked.

Nope just repeat some thought about what may or may not be considered a useful guide based upon typical scenarios.

We are not all vanilla and the point again is perhaps people who respond might just take a moment to ensure they understand the query and have all pertinent information before responding.

jimboger1

for info, im 60 - lol