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Unread 07-01-2022, 11:28 AM
Switching Off
 
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Quote:
Originally Posted by redhegemony
what percent shares to bonds?
Its 100% equity. I'm invested (and buying regularly) for another 15-20 years so I can ride out any crashes. If you're investing for less than 5 years go for one with lower equity exposure, depending on what you're comfortable with. They do 20%, 40%, 60% and 80% equity too.

And buy the accumulation units. They reinvest your dividends for you. Compounding over the long term makes a massive difference.
 
Unread 07-01-2022, 11:29 AM
redhegemony
 
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Quote:
Originally Posted by Hyman_Roth
What does a typical pension pot need to be to be able to retire?

I realise it depends on what you spend per annum but just some general rules.

Iím absolutely clueless with this shit as itís never interested me. I need to become interested now I guess.
#metoo
 
Unread 07-01-2022, 11:29 AM
tatty
 
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Quote:
Originally Posted by Hyman_Roth
What does a typical pension pot need to be to be able to retire?

I realise it depends on what you spend per annum but just some general rules.

Iím absolutely clueless with this shit as itís never interested me. I need to become interested now I guess.

A Sustainable Withdrawal Rate (SWR) is usually considered to be about 3%, maybe 3.5% at a push, over a 30-year retirement.

So whatever you reckon you'll need annually, multiply by 30 and you'll get a ballpark figure.
 
Unread 07-01-2022, 11:34 AM
My Name is Heath
 
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Quote:
Originally Posted by tatty
A Sustainable Withdrawal Rate (SWR) is usually considered to be about 3%, maybe 3.5% at a push, over a 30-year retirement.

So whatever you reckon you'll need annually, multiply by 30 and you'll get a ballpark figure.
So if I want £25k per year when I retire in 15 years does that mean I need £750k pot OR an adjusted pot to reflect that? If inflation goes crazy and a load of bread is a grand, youíd need about 750 million wouldnít you?
 
Unread 07-01-2022, 11:41 AM
tatty
 
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Quote:
Originally Posted by My Name is Heath
So if I want £25k per year when I retire in 15 years does that mean I need £750k pot OR an adjusted pot to reflect that? If inflation goes crazy and a load of bread is a grand, youíd need about 750 million wouldnít you?
The SWR is based on Monte Carlo simulations run over individual 30 year periods since the stock market was a 'thing'. It assumes you want zero risk of running out of money before the 30 years is up using the very worst 30 year period for investing.

So if you want say a 5% SWR then you would see a meaningful risk of going broke...if you hit a particularly bad window.

And the SWR is based on withdrawals increasing by inflation each year.

The other thing i would say is that your spending over retirement often follows a 'rollercoaster' sort of pattern; the first few years you are buying sports cars and taking world cruises, then you settle down to a cheaper period of being at home, then at the end of life you may face increased spending again with care costs.
 
Unread 07-01-2022, 11:41 AM
Switching Off
 
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Quote:
Originally Posted by redhegemony


and what type of account is it stocks and shares? personal pension?
It's just a fund, but it's cheap and it's a tracker, rather than actively managed. You can buy it in your own name, in an ISA or a SIPP.
Quote:
Originally Posted by Hyman_Roth
What does a typical pension pot need to be to be able to retire?

I realise it depends on what you spend per annum but just some general rules.

Iím absolutely clueless with this shit as itís never interested me. I need to become interested now I guess.
Depends on loads of things. Your age, your current pension pot, are you going to add to it before retirement?

A £500k pension pot should roughly be enough to provide a moderate income in retirement, of around £20k per annum. This is rougher than a Maguire Lindelof defence but gives you an idea.

The best time to start investing in your pension is yesterday btw.

If you have any with ex employers, they may buy you out at a premium. I'm currently transferring my Barclays pot to a Vanguard SIPP and Barclats have offered me 42% on top of it's current value because they want people off their books. So worth looking into.

It's all very complex. It's worth taking advice if you have a large pot, but be mindful the adviser will want to manage it going forward, and theyll charge you for it. Worth it for piece of mind if you dont want to manage it yourself.
 
Unread 07-01-2022, 11:44 AM
waynes ear's
 
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Quote:
Originally Posted by Switching Off
It's all very complex. - Its not

It's worth taking advice if you have a large pot, but be mindful the adviser will want to manage it going forward, and theyll charge you for it. - Tell them to get f***ed

Worth it for piece of mind if you dont want to manage it yourself. - only an idiot would want someone else doing it
 
Unread 07-01-2022, 11:44 AM
measlyshark
 
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Quote:
Originally Posted by Switching Off
Scottish Mortgage had a stellar 2020, I'd definitely have been taking a decent profit last year. Depends on the size of your holding but I'd be looking to sell about 40-50% to bag some of that profit and stick it into Vanguard.

Yeah that's my thinking.
 
Unread 07-01-2022, 11:46 AM
Coracao
 
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Quote:
Originally Posted by measlyshark
This.



Does it (genuine question), got some in Scottish Mortgage in a SIPP I'm thinking of moving. Is it a S&S ISA or other vehicles available?
I invest in the T Class Acc S&S ISA. You can also invest in the fund as a non-ISA.



Worth a watch.

22.1% return for 2021. Think the average since inception is just over 18%

https://www.fundsmith.co.uk/factsheet/
 
Unread 07-01-2022, 11:48 AM
Hyman_Roth
 
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Many thanks all. Really helpful. Repped.
 
Unread 07-01-2022, 11:48 AM
Mr_Ed
 
Default

Quote:
Originally Posted by Hyman_Roth
What does a typical pension pot need to be to be able to retire?

I realise it depends on what you spend per annum but just some general rules.

Iím absolutely clueless with this shit as itís never interested me. I need to become interested now I guess.
Do you retire next year?
 
Unread 07-01-2022, 11:49 AM
measlyshark
 
Default

Quote:
Originally Posted by Coracao
I invest in the T Class Acc S&S ISA. You can also invest in the fund as a non-ISA.


https://youtu.be/IojZCeUjhRg

Worth a watch.

22.1% return for 2021. Think the average since inception is just over 18%

https://www.fundsmith.co.uk/factsheet/
Ta. Mrs has vanguard 100 S&S ISA as have I as part of a SIPP. Might move my S&S ISA to this.
 
Unread 07-01-2022, 12:03 PM
Switching Off
 
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Quote:
Originally Posted by measlyshark
Ta. Mrs has vanguard 100 S&S ISA as have I as part of a SIPP. Might move my S&S ISA to this.
Please don't. Moving to active management from passive, on the back of good performance is not a great idea. Fundsmith has performed really well for a long time, but so did Invesco under Woodford. And then it all went ***s up.

Fundsmith might outperform for the next ten years, or the next 20, or it might not. It will probably do ok, you're unlikely to lose all your money. But its a gamble and fundamentally, I personally don't think its a good idea. Allocating a portion to it is fine, but dont move it all. If you take a hefty chunk out of Scottish Mortgage, you could allocate that to Fundsmith and retain your Vanguard, but I'd be wary of moving it all.
 
Unread 07-01-2022, 12:19 PM
Hyman_Roth
 
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Quote:
Originally Posted by Mr_Ed
Do you retire next year?
No.
 
Unread 07-01-2022, 12:20 PM
measlyshark
 
Default

Quote:
Originally Posted by Switching Off
Please don't. Moving to active management from passive, on the back of good performance is not a great idea. Fundsmith has performed really well for a long time, but so did Invesco under Woodford. And then it all went ***s up.

Fundsmith might outperform for the next ten years, or the next 20, or it might not. It will probably do ok, you're unlikely to lose all your money. But its a gamble and fundamentally, I personally don't think its a good idea. Allocating a portion to it is fine, but dont move it all. If you take a hefty chunk out of Scottish Mortgage, you could allocate that to Fundsmith and retain your Vanguard, but I'd be wary of moving it all.
Not moving my Vanguard, I have a collection of funds and shares in my SIPP; Mrs has a 'steady' Vanguard 100 S&S ISA; I have a plaything S&S ISA (RBLX, 27.93% amongst others) that I want to stop playing with and leave alone. Thought diversifying with Fundsmith is an option. We'd then have two S&S ISAs split between Vanguard 100 and Fundsmith.
 
Unread 07-01-2022, 12:26 PM
tatty
 
Default

Quote:
Originally Posted by measlyshark
Not moving my Vanguard, I have a collection of funds and shares in my SIPP; Mrs has a 'steady' Vanguard 100 S&S ISA; I have a plaything S&S ISA (RBLX, 27.93% amongst others) that I want to stop playing with and leave alone. Thought diversifying with Fundsmith is an option. We'd then have two S&S ISAs split between Vanguard 100 and Fundsmith.
Nothing wrong with Fundsmith, if I was looking for active option it would be on my radar, but you won't be diversifying by adding it to your VLS100.

You will be concentrating risk.
 
Unread 07-01-2022, 12:27 PM
Switching Off
 
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Quote:
Originally Posted by tatty
Nothing wrong with Fundsmith, if I was looking for active option it would be on my radar, but you won't be diversifying by adding it to your VLS100.

You will be concentrating risk.
At a sector level but Smith is pretty savvy about his stockpicking, so there's alpha to be had I guess.
 
Unread 07-01-2022, 12:28 PM
measlyshark
 
Default

Quote:
Originally Posted by tatty
Nothing wrong with Fundsmith, if I was looking for active option it would be on my radar, but you won't be diversifying by adding it to your VLS100.

You will be concentrating risk.
Same broad portfolio in each?
 
Unread 07-01-2022, 12:32 PM
tatty
 
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Quote:
Originally Posted by measlyshark
Same broad portfolio in each?
VLS holds thousands of companies...Fundsmith has 28.

There is a discussion to be had about how many holdings diversify you from unsystematic risk.
 
Unread 07-01-2022, 12:39 PM
measlyshark
 
Default

Quote:
Originally Posted by tatty
VLS holds thousands of companies...Fundsmith has 28.

There is a discussion to be had about how many holdings diversify you from unsystematic risk.
Got it, Ta.
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