Re: FIRE - Psychology of investment once retired
Posted: June 1st, 2020, 12:18 pm
I'm now in my final year of work with retirement due in 10 months' time. Until the State Pension kicks in, I will be reliant entirely on my portfolio, held in a variety of wrappers.
A cash buffer is not a good idea in financial terms, but will give peace of mind and may prevent selling in a downturn, so is worth doing. I will hold 2 years' non-discretionary spending in Premium Bonds.
The balance of my portfolio is 70:30 equities:bonds all in low-cost world tracker funds. Re-balance annually.
This position follows several years of reading about how to invest. I am confident that this position constitutes the optimum possible, so I won't fret.
A cash buffer is not a good idea in financial terms, but will give peace of mind and may prevent selling in a downturn, so is worth doing. I will hold 2 years' non-discretionary spending in Premium Bonds.
The balance of my portfolio is 70:30 equities:bonds all in low-cost world tracker funds. Re-balance annually.
This position follows several years of reading about how to invest. I am confident that this position constitutes the optimum possible, so I won't fret.