So perhaps calling it "Retirement Income Strategies" or something, I dunno.
Maybe it's because I'm less interested in accumulation now that I'm approaching retirement
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swill453 wrote:Currently we have "Retirement Investing (inc FIRE)" in "Investors' Roundtable" and "Pensions - Practical Problems" in "Managing Your Finances". Maybe a slight renaming and redefinition of the latter would do?
Alaric wrote:swill453 wrote:Currently we have "Retirement Investing (inc FIRE)" in "Investors' Roundtable" and "Pensions - Practical Problems" in "Managing Your Finances". Maybe a slight renaming and redefinition of the latter would do?
If talking about bridging an early retirement gap up to normal pension age, the investor might not be looking to draw out of funds subject to pension rules, particularly if the pension was of defined benefit form with sizeable lifetime reductions for taking it early.
swill453 wrote:Alaric wrote:swill453 wrote:Currently we have "Retirement Investing (inc FIRE)" in "Investors' Roundtable" and "Pensions - Practical Problems" in "Managing Your Finances". Maybe a slight renaming and redefinition of the latter would do?
If talking about bridging an early retirement gap up to normal pension age, the investor might not be looking to draw out of funds subject to pension rules, particularly if the pension was of defined benefit form with sizeable lifetime reductions for taking it early.
Agreed, so maybe something like "Pensions and Retirement Income - Practicalities"?
Allitnil wrote:- Decumulation
(or similar – I must admit that I can’t come up with a good name for the third one and it needs something better than I've offered!)
Allitnil wrote:I would welcome a board that specifically discussed decumulation approaches & issues. In a related discussion with some friends, one of them quoted William Sharpe (of Sharpe Ratio fame) who described decumulation as "the nastiest, hardest problem in finance". And having started to grapple with the issues both personally having recently retired with a wife nearing retirement, and considering how best to advise my mother following my father’s death, I couldn't agree more! Decumulation isn't as simple as selling assets and there are major considerations when it comes to CGT and IHT.
Gilgongo wrote:I'm not in favour of splitting boards, so this isn't a call for that. but might the Retirement Investing board benefit from some "guidence" for people to talk about decumulation as opposed to accumuation? The accumulation side of things is more than catered for on other boards (HYP, Investment Strategies and others), while the business of getting income from investments after retirement is somwhat scatterd about (often on those other boards). It's also a topic that creates quite a lot of "thread drift" on those boards because of that, perhaps?
So perhaps calling it "Retirement Income Strategies" or something, I dunno.
Maybe it's because I'm less interested in accumulation now that I'm approaching retirement
Allitnil wrote:Can I humbly suggest that we have 3 boards:
- Pensions – Practical Problems
- Financial Independence, Retire Early
- Decumulation
(or similar – I must admit that I can’t come up with a good name for the third one and it needs something better than I've offered!)
DrFfybes wrote:I no longer work, and live on investments, plus MrsF's DB pension and part time income. After spending years saving, investing, and planning our strategy changed massively after talking to an adviser who came up with several suggestions, some of which were blindingly obvious with hindsight.
1nvest wrote:DrFfybes wrote:I no longer work, and live on investments, plus MrsF's DB pension and part time income. After spending years saving, investing, and planning our strategy changed massively after talking to an adviser who came up with several suggestions, some of which were blindingly obvious with hindsight.
Ah! What a tease! Care to share?
Alaric wrote:Allitnil wrote:- Decumulation
(or similar – I must admit that I can’t come up with a good name for the third one and it needs something better than I've offered!)
"Living off (accumulated) wealth and savings" perhaps?
UncleEbenezer wrote:Alaric wrote:Allitnil wrote:- Decumulation
(or similar – I must admit that I can’t come up with a good name for the third one and it needs something better than I've offered!)
"Living off (accumulated) wealth and savings" perhaps?
Or more succinctly, and in the modern idiom of ungendered language, Fools of Leisure?
DrFfybes wrote:1nvest wrote:DrFfybes wrote:I no longer work, and live on investments, plus MrsF's DB pension and part time income. After spending years saving, investing, and planning our strategy changed massively after talking to an adviser who came up with several suggestions, some of which were blindingly obvious with hindsight.
Ah! What a tease! Care to share?
I'm not sure there is a board for that
Basically he looked at money as a whole, rather than the 'investment pots' we had been concentrating on building up to generate income to live on. So rather than concentrate solely on generating income, have some 'good' divi paying holdings for Income(eg CTY), and Invest in some lower yield/higher growth (eg ATST, Marlborough micro-cap) which if required can be sold down to maintain the level of income you want.
Rather than take dividend income from ISAs, sell down non-ISA holdings for income, thus effectively topping the ISA up by the dividend income we would have taken (this was the balatantly obvious bit we hadn't thought about, being focussed on generating Income)!
Within the ISA have automated divi reinvestment or buy Acc units, and when the time comes take divis and sell Acc units to generate the required steady income.
Also worth investing into a SIPP for potential future IHT mitigation - only small amount for me but with no children to leave the house to, if the rules are the same in 30 years it will make a difference. And if we need the money, everything else will be ISAd by then so fewer tax complications. MrsF already does salary sacrifice but can increase that to take herself to minimum wage.
Actually, with a bit more thought about it, I'm not sure there is enough mileage in decumulation for its own board.
Paul
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