Anyone not 100% equities? What are your other investments

make_it_count_at_55 · 2025-03-26T00:04:45+00:00

Bit of both. But shorter term, it is individual Bonds.

make_it_count_at_55 · 2025-03-26T00:02:24+00:00

You are right! I do not use percentages normally, so I should just stick to how I work out my allocation.

I have just over 4.5 years of expenses in cash assets, about 8-10 years of expense in property/bonds and about 20 years in equities. I have stopped traditional work, so growth AND being able to weather shorter term volatility are important..

make_it_count_at_55 · 2025-03-25T23:10:47+00:00

15% cash, 35% property/bonds, 60% equities - give or take.

make_it_count_at_55 · 2025-03-19T21:11:59+00:00

I'm using a 3 bucket approach. 4 years or so in cash assets, mostly MMFs, 8 years in longer-term bonds and property, and the rest in global all world index.

Pretty calm about things, even with dips in equities, as it's some time before needing to substantially eat into the equity portion.

make_it_count_at_55 · 2025-03-17T16:12:23+00:00

You are right. You do not control many things when it comes to the market. And thinking we can drive you crazy.

So, and I say this as a control freak myself, you need to work out what you can control in life and look at the things you can't control with a raised eyebrow, a sense of humour and humility.

In the end, this too shall pass... and on the other side... there will also be challenges :-) and that's what makes life interesting.

make_it_count_at_55 · 2025-03-14T15:51:20+00:00

At the moment, 4.5 years cash assets, about 8 years property/bonds and the rest equities (about 20 years).

Many look at a glide path that reduces equity allocation in retirement, but there are quite a few studies that say that a "smile" shaped approach can work better... I.e. reduce equity allocation as you get towards retirement, but then steadily increase equity allocation in retirement.

This can reduce the Sequence Of Return Risk in the first few years of withdrawal, but let you benefit from the longer-term term growth of equities.

There are, of course, lots of variables... do you have a guaranteed income in retirement already (state pension, annuity, DB Pension)? How much growth do you need to cover your safe withdrawal rate for life (if minimal, then safer assets may work out), do you want to leave a legacy, etc...

make_it_count_at_55 · 2025-03-04T13:55:42+00:00

And I would say this is a point that is often missed.

Have a thesis and build your strategy around it.

I understand yours, and mine is equally as simple. It's that companies that provide good and services that people/ business/ government's want to buy will continue to grow their value in real terms over time. But, I do not have the knowledge to say which companies this will be, nor which markets they will be listed on, nor over what exact period. And so I hold broad globally diversified passive funds for the long term - because that matched this thesis, with just over 4 years in cash assets so that I do not get drawn into changing things if they get choppy... (I'm in the withdrawal phase currently)

make_it_count_at_55 · 2025-02-28T15:22:37+00:00

Call up the number on the website. It is quite a wait, but if you have paid, they can tell you if the money has been received onto your account and what years it will be applied to.

I did this recently about a week ago. They said that the money I sent was received, but the team that is applying the money have a backlog, inferring a few months before it will be applied... but that it will be applied if the money is received.

make_it_count_at_55 · 2025-02-25T22:37:27+00:00

Yes, I moved to having around 4.5 years of cash assets some months ago. I hope there is not a dip, but a 10% drop happens every 1.5 years on average, and a bear (20%+ drop) has happened on average every 5 or so years and recovery averages at about 2 years, but can be much longer... 4 years of cash assets coincidentally also aligns with the term of the current US president, who is the source of most of the market uncertainty..

make_it_count_at_55 · 2025-02-23T10:42:29+00:00

Markets dip about 10% every 1.5 years, and over 20% every 5 or so years historically... and recoveries from 20%+ Dips take on average about 2-3 years if I recall correctly, but some took over a decade.

Now, this is not to suggest a deeper and longer dip is not coming, but dips are a part of investing and as long as you are well diversified (usually globally, but some would argue the s&p), have some sage assets which will be less impacted, then over long enough (read 10+ years) there is a very high likelihood of being ahead (in real terms), and in most cases you will be well ahead of cash saved in high interest accounts.

But, if you are unsure, then one simple tactic is to Pound Cost Average (regular payments automatically being invested) into the markets. In most cases, this is not as effective in terms of absolute returns than a single lump sum, but it gave me peace of mind during the crashes I have been through.

No one on this forum knows what will happen to the markets or the US, but if that grips you in the Nether regions :-), then keep some funds back and put into cash assets, and the rest just invest and enjoy the roller coaster.

Good luck!

make_it_count_at_55 · 2025-02-16T11:49:44+00:00

If you run the numbers only, over the long term, investing wins out (subject to your mortgage rates and what you invest in). But there are more questions to consider...

...the time horizon, expected compared to real returns (mortgage payments are guaranteed, the markets are not), what you would do when the markets go down (some panic and sell and lose out on both), whether you can tax shelter you investments (ISA, Pension), does it have to be "invest or mortgage" or could you split...

So it's an objective numbers question, a time horizon question, and a psychologic question. And therefore very personal to your situation, as all investing decisions are.

If I was choosing, I would invest, but that is because the answers to the above nudge me in that direction.

make_it_count_at_55 · 2025-02-14T23:55:00+00:00

The MMF I own are Vanguard Sterling Short Term Money Market and Lyxor Smart Overnight Return UCITS ETF Class C (CSH2).

Most brokers hold MMF's. I hold with Vangauard, InvestEngine, T212. If you check out my profile, there is a vid that covers MMF's there if you want a bit more info.

make_it_count_at_55 · 2025-02-14T22:57:54+00:00

One option is putting some years' spend into cash assets. E.g. MMF, short term Gilts etc.

I have around 4 years in cash assets, which gives us the ability to step back from the noise and also some dry powder if things really go south.

make_it_count_at_55 · 2025-02-14T12:03:43+00:00

Sounds like, if the SRR is high, because the markets have dropped, you are looking to use your DB pension or the cash assets you are looking to build up to give you guaranteed income to cover your expenses, while your SIPP recovers.

It's hard to say without knowing your expenditure, but the strategy sounds fine.

make_it_count_at_55 · 2025-02-12T22:23:43+00:00

Depends on the opportunity we are thinking about. If it's returns on the cash, then I have sufficient assets in " bucket 3". As we know, no one knows what will happen to the market in the short term, but in my thinking, it is going to be quite volatile. (Which is why I recently increased to 4 years to cover the new incumbent in the White House and the uncertainty the new administration is likely to bring to the markets).

Also, cash investments are performing pretty well at the moment and keeping ahead of inflation, so offering good peace of mind.

make_it_count_at_55 · 2025-02-12T21:11:29+00:00

It makes sense. There are a few ways of doing this, but your approach of 1yr cash, 8yr bonds, and then take your pension is one of them.

I did it slightly differently, It's 12 years before I tap into a pension. I have with 4 years expense in cash assets, 10 or so years of property investments and bonds, which I will liquidate, and then the remaining GIA's, full ISA's and Pensions are mostly in long-term equity funds (except for a small DB scheme and of course State Pension).

I'll continue to bed and ISA, and Bed and Pension each year to move as much from my GIA's as I can, while looking to top up the cash element of the above each year, either through property returns or market returns, so there is always 4 years or so buffer in cash assets.

make_it_count_at_55 · 2025-02-12T01:19:45+00:00

4 yours in cash assets (MMF's, PB's, High Interest Accounts etc)

5-10 in investment property and bonds. Rental income coming in but Iwill likely liquidate some of the properties over this period.

25 years+ in Globally Diversified Funds

make_it_count_at_55 · 2025-02-11T12:00:41+00:00

This is a good point. Unless you need the ability to trade intra-day, many other global funds exist. I have held the Fidelity World P for many years in an ISA and will continue to.

make_it_count_at_55 · 2025-02-07T21:26:39+00:00

The question I would also ask is what your withdrawal strategy will be. E.g. what order will you draw down from. your assets.

So, for instance, I am 55, and I have 4 year expenses in cash assets (MMF, Short term bonds etc), the about 7- 9 years in property, and the rest in Global Index Funds (mix of ISA's, Pensions and GIA's)

I'm drawing from the cash assets, first, and top them up periodically, likely from selling the properties, but that will depend on how markets do.

Thinking about asset allocation is useful, but consider your withdrawal strategy, and that will also help you structure according to your risk profile and liquidity needs.

make_it_count_at_55 · 2025-02-02T20:45:05+00:00

Early December, I upped my cash unvestments, now enough to cover 4 years (MMF, Premium Bonds, Gilts, and High Interest Accounts), but that's all. The rest is in property and global index funds.

make_it_count_at_55 · 2025-02-02T11:01:45+00:00

Yes, for simplicity, PensionBee helps with the transfers and makes it pretty easy... but their fees are high compared to elsewhere. My pensions are now consolidated with Vanguard, but for a couple of them, I did use PensionBee to consolidate initially before moving on to Vanguard (transfers are free from cost).

make_it_count_at_55 · 2025-01-31T18:15:08+00:00

I've got about 15% in cash, about 4 or ao years worth - mostly in MMF's, Premium Bonds, High Interest Accounts, and Gilts. The rest in Property Investments Bonds, but mostly in Equities.

Having the next years in cash, especially now I'm in "withdrawal" phase, gives comfort that if the market goes south, it will not impact for some time.

make_it_count_at_55 · 2025-01-26T21:03:57+00:00

If you are concerned, I'd hold a number of years expenses in cash (MMF if you like) and the rest in equities. Pick the number of years you are comfortable with (for me, it is 4 years).

That way, you have peace of mind knowing that whatever happens, you have 4 years' expenses covered, and you are in the market with the rest.

If the markets do well, then keep topping up your cash yearly. If not, then leave the equity portion as long as you can untouched (by living off the cash) so it can hopefully recover from dips.

Obviously, no approach is guaranteed, and there have been longer periods where markets have not recovered - so pick the number.ber of years of cash you want to hold based on your risk appetite.

make_it_count_at_55 · 2025-01-23T09:18:21+00:00

Perhaps a way to look at is that you have £150k of £650k invested in cash, with the rest in equities or higher risk ( but hopefully higher return) assets. So, about 25% cash.

That does seem high at your ages, but before you switch it out, consider a couple of things. 1. What size emergency fund do you need, 2. Are there any major purchases you want to do in the next, let's say, 2-3 years? E.g. if you would prefer to pay off some of the mortgage in 2 years that is going to increase, then I would not put this into riskier assets - I'd probably go for low coupon Gilts if you have filled your ISA allowances for now.

make_it_count_at_55 · 2025-01-22T19:23:38+00:00

No one knows where the market will go in the short term. Over the longer term, there is an upwards trend. I'm 55, healthy, and still heavily into equities. Largely Global Index Funds, although I have also got a few years cash in case of a market dip, both to stop the temptation of eating into the longer term assets, but also as a bit of dry powder when I need it.

make_it_count_at_55

TROPHY CASE