kempiejon wrote:You've burnt through 1 year of your reserve in less than a year? Have you been adding more cash to the market? Not drawing any of the income from the investments? I recon 3 years of expenditure could allow a halving of expected income taking 7 years to recover.
Not quite as simple as that. I was lucky that Statutory Redundancy and other bits off the government kept me going between September and December. During that time I drew down my 25% cash lumpsum on my small SIPP and added that to the semi HYP that I had been building up with the help of TLF. I'd been aiming for a 10k yr ISA income, 16k UFPLS from the big pension and 5k from cash savings until the state pension kicked in in 5 years time. The big pension was all in low cost global growth so took a hit in April. It then recovered a lot, so I moved about half into safer water, but of course that has hampered the portfolio growth, but as mentioned above, at least I could sleep at night. So, I'm now waiting until I have at least 4% portfolio growth before taking any drawdown. Also, I had planned on taking the ISA Hyp income in arrears, so I'm still waiting for that money to slowly build up in the account having been lucky to not have selected to many divi cancelers. So, my 30k income for 2020 has all had to come from the 3 year emergency funds I had put aside in BS accounts. Luckily, I was sitting on a lot of cash for various reasons when the market fell. So, had I been smart enough, I'd have shoved a load of new money in at the bottom of the drop and come out better off than I was in January. I was smart enough to spot the bottom, but not gutsy enough to take the risk. I have added some extra bits to the HYP at good prices, but my opinion, for what its worth, is that a further fall is likely. If it does happen, I am now positioned to take advantage and know what to buy. If it doesn't I'll steadily transfer some back to equity as we go along. The interesting thing was that I had a plan, I knew at some point I'd have to endure a big correction, but when it happened I couldn't just switch off the PC and come back in a years time as I had planned to do.