What's the received wisdom - most active fund managers cannot beat the market long term - those that can are lucky.
There are much worse plans than holding global tracker(s) taking any income thrown off and adding to that with sales in good times or drawing from a cash float to lessen any hit from down years. How big does the float have to be becomes your question and will you hold it cash or bonds or something else?
In practice I hold about two years. In cash.
Do you think bonds would be a good idea? And am intrigued, what do you mean by 'something else'??
Pemium Bonds seem to be a fairly popular method of holding emergency funds, and I plan on utilising that method in some way too for near-term cash requirements once retired, but it's sometimes not clear when people might talk about 'cash' in the above sense whether they might already group 'Premium Bonds' into that 'cash' description..
Given that an adult can hold up to £50,000 in Premium Bonds, then it opens up a relatively safe option for this type of emergency funding, especially for couples, but of course there may be an element of inflation-risk sat alongside the reduced chances of the capital actually being at risk itself...