Bear Market/Crashes: how do Retirees Deal with it?

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  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    gadgetmind wrote: »
    Note the book looks at various combinations of GI (guaranteed income) versis bonds/equities and is well worth a read. In fact, read once to get a feel, and then again to mark the pages needed to work the spreadsheets.

    I'll only have a small DC pension pot, which will be only about 3% (after taking the TFLS) of my my portfolio value, so it is far from critical to me. But I'm interested out of curiosity and of course getting the best value, even if it is of minor significance.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    I'm 100% DC all the way. Market risk but not much in the way of the "counterparty risk" that affects many.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    gadgetmind wrote: »
    I'm 100% DC all the way. Market risk but not much in the way of the "counterparty risk" that affects many.

    About another 47% of my portfolio will be in equities and investment property, so I will still subject to market risk, but I'm comfortable with that. That might actually lead me to consider an annuity (from the DC pension) if it doesn't turn out to be such a poor comparison to drawing down.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    edited 10 February 2018 at 11:30PM
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    ams25 wrote: »
    It's helped a lot that over the past 18 months since I stopped accumulating and went into withdrawal mode that markets have been good so my withdrawals are much lower than my investment growth (though that's maybe changing now). But I find 18 months later I am becoming more relaxed about going into withdraw mode.

    You couldn't have timed it better. That's the fortuitous part of investing. Fine line between winners and losers. :beer:
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    TBC15 wrote: »
    :DI know Im’ not the only one having trouble with apostrophes.
    I believe it is a iPhone (Apple device) known issue/thing on the site. There is an MSE workaround link somewhere.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Keep_pedalling
    Keep_pedalling Posts: 16,623 Forumite
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    cloud_dog wrote: »
    I believe it is a iPhone (Apple device) known issue/thing on the site. There is an MSE workaround link somewhere.

    No, it happens regardless of what device you are using, and it does not happen on any other forums I post on. This is a MSE forum bug.
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    cloud_dog wrote: »
    I believe it is a iPhone (Apple device) known issue/thing on the site. There is an MSE workaround link somewhere.

    I’m using a PC.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    edited 11 February 2018 at 9:54AM
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    gadgetmind wrote: »
    Note the book looks at various combinations of GI (guaranteed income) versus bonds/equities and is well worth a read. In fact, read once to get a feel, and then again to mark the pages needed to work the spreadsheets.

    What conclusions did you come to when you considered drawdown v annuity, do you feel that at least having some annuity protection is worthwhile? With state pension and DB I should have about £23k index linked pension, if I used up 75% of my SIPP to buy an annuity, it would probably almost get that up to about £30k, I'll think that over, it might be not as I first thought, when I originally dismissed the idea.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    chucknorris wrote: »
    What conclusions did you come to when you considered drawdown v annuity, do you feel that at least having some annuity protection is worthwhile?

    Were I retiring in my late 60s, then an annuity at this stage to cover basic needs might make sense. As I'm in my mid 50s, it's just too expensive.
    I'll think that over, it might be not as I first thought, when I originally dismissed the idea.

    I need to read this section of the book again TBH. Our only guaranteed income will be state pension but there are good ways to rerisk drawdown while maximising income, which is what LOYM is mainly about.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • OldMusicGuy
    OldMusicGuy Posts: 1,758 Forumite
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    gadgetmind wrote: »
    Were I retiring in my late 60s, then an annuity at this stage to cover basic needs might make sense. As I'm in my mid 50s, it's just too expensive.

    I need to read this section of the book again TBH. Our only guaranteed income will be state pension but there are good ways to rerisk drawdown while maximising income, which is what LOYM is mainly about.
    I'm in a similar situation to you, large DC pot, no other pension apart from state (my wife has small DB pension). I see annuities playing a role later in our lives because they are better value as you get older (in terms of guaranteed income) but they are not good value right now (I am 60).

    I ordered a copy of LOYM, shall read with interest (you see what I did there...?).
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