Some General Advice

Samuelsjourney

Hi, i have about £175k in a pension fund. Currently sitting in Money Market accumulation. I have work pension Nest that is ticking along 8k in a High Risk fund. I want to spread the £175k (with Vanguard) across about 6 to 7 funds perhaps leaving 25k in the Money Markets. Just after some advice. My time frame is 5 years till retirement. What would you consider?

[Deleted User]

I'd consider the need for 6 to 7 funds when 1 would suffice, but that's me.

dunstonh

 I want to spread the £175k (with Vanguard) across about 6 to 7 funds perhaps leaving 25k in the Money Markets. Just after some advice. 

Advice is regulated and you dont get that here (or elsewhere online). Just discussion and opinon.

If you know you want to build a portfolio of 6-7 funds, then why do you need advice?

What would you consider?

What others would consider will be based on their objectives, knowledge, preferences and risk profile. For example, your method of acessing pension isn't mentioned despite being a major influence on what you should do.

The poster above has suggested 1 fund - which could be correct. I use 12 funds - which could be correct (it is for me as it matches my portfolio structure). You want 6-7 funds but havent mentioned your chosen strategy.

Albermarle

https://forums.moneysavingexpert.com/discussion/6663544/some-general-advice

What do you intend to do with the money at retirement? If it is drawdown, then your actual retirement date is not that important, as probably you will want to be drawing down from the pension for many years, and that is what you have to plan around.

If you are planning on buying an annuity when you retire, then you want be staying in lower risk options.

Veloflyer

I am considering retirement and am 61. I have 50% of my pot in essentially global tracker funds - equities - which in my view are fairly low risk for equities and (hopefully) - will provide steady growth until such a time as I decide what to do with them. Of course, they are wholly at the mercy of the markets…..

The other 17% is in an index -linked gilt ladder for 5 years, maturing each year with an amount roughly equivalent to my annual spend. The remaining 33% is in a index -linked gilt maturing in 5 years - when I receive state pension. I may choose to buy an annuity at that time from the redemption. This was done to fundamentally safeguard the 50% from any market dips/crashes/falls and as protection from inflation.

I believe that as you near retirement, diversification into less riskier investments is recommended. Do your own research though. Plenty of literature around - especially on this most useful website.

Samuelsjourney

Thanks to all for the comments so far. Im 59 years of age. At drawdown 63 years of age my DB pension (which ive already taken) is circa £24,000 pa projected. I would look to bridge the 4 years to SP retirement age drawing down about 20k per annum to sit under the Scottish higher rate tax band.

Just after some thoughts really, spit the 175k into Asia/Japan/FTSE 100/FTSE 250/Allworld/S&P 500/Europe ex UK ETF……

Samuelsjourney

to add, im about to invest £900 a month for the next 4 years too.

QrizB

I want to spread the £175k (with Vanguard) across about 6 to 7 funds perhaps leaving 25k in the Money Markets.

As alluded above, many Vanguard customers would be happy with a single LifeStrategy fund, chosen to match their risk appetite.

Just after some thoughts really, spit the 175k into Asia/Japan/FTSE 100/FTSE 250/Allworld/S&P 500/Europe ex UK ETF……

Is there a reason why you think you'd be better off with separate sectoral funds? Do you have the skills and inclination to manage such a portfolio? (If you do, why are you asking here?)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81957672#Comment_81957672

 I have 50% of my pot in essentially global tracker funds - equities - which in my view are fairly low risk

Of course, they are wholly at the mercy of the markets…..

Two conflicting statements IMHO…..

Veloflyer

I did say fairly low risk for equities - I concede they are not fairly low risk compared with other investments - hence may later comments ref ILGs

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81957701#Comment_81957701

It may not have been clear from your earlier posts, but will you have sufficient earned income to support such contributions?