Investing & Protecting Your Retirement Cash from inflation?

[anonymous-user]

I've decided to stop working at 54. The house is paid off and I have a 2 decent pension pots (DC pension) which I do not want to touch for at least another 8 years so to maximise growth.

This means that I'll be living off my savings.

So the question is, what is the best investment approach to at least protect the cash from inflation and, if possible, grow it slightly.

I've not used my ISA allowance this year.

Thanks
Gary

[rsbmw]

Depending on your appetite to risk, perhaps low cost tracker funds are a good fit. Something like Vanguard Lifestrategy range

[GT03ROB]

We are into a 7th straight year of gains on world markets, with the last 2 seeing double figure gains ..... if you introduce a significant lump sum into the equity markets today the question is "Do you feel lucky?"

[anonymous-user]

rsbmw said:

Depending on your appetite to risk, perhaps low cost tracker funds are a good fit. Something like Vanguard Lifestrategy range

That was along the lines of what I was thinking. I'll take a good look, thanks.

[anonymous-user]

GT03ROB said:

We are into a 7th straight year of gains on world markets, with the last 2 seeing double figure gains ..... if you introduce a significant lump sum into the equity markets today the question is "Do you feel lucky?"

Or drip feed over the next year if I don't

[Yipper]

Stick it in one of the new cryptos.

Some, like Ripple, have gone up 15-fold in a month.

[red_slr]

rsbmw said:

Depending on your appetite to risk, perhaps low cost tracker funds are a good fit. Something like Vanguard Lifestrategy range

That's what I do.

[red_slr]

GT03ROB said:

We are into a 7th straight year of gains on world markets, with the last 2 seeing double figure gains ..... if you introduce a significant lump sum into the equity markets today the question is "Do you feel lucky?"

Or it could tick up for another 3 years, or more who knows?

Personally I would rather be in the market than not at all. If you have to ride out a rough couple of years then so be it but after every drop in history the markets have recovered. Its just a matter of time.

Your best to look at average returns IMHO, so include the rough years with the smooth.

Someone like Vanguard has not been going long enough to see how they handle a dip but given they are managed to a fairly good extent then I think they can handle it. If you are really risk averse then VLS20 should cover it.

[anonymous-user]

red_slr said:

Or it could tick up for another 3 years, or more who knows?

Personally I would rather be in the market than not at all. If you have to ride out a rough couple of years then so be it but after every drop in history the markets have recovered. Its just a matter of time.

Your best to look at average returns IMHO, so include the rough years with the smooth.

Someone like Vanguard has not been going long enough to see how they handle a dip but given they are managed to a fairly good extent then I think they can handle it. If you are really risk averse then VLS20 should cover it.

After a recent pension review one of my pension pots will stay mainly invested in equities across UK, Europe and US and the other will gradually move from 85% equities to 35% equities over the next 5 years and then gilts over the last 5 years.

Something like the 20% Vanguard looks like a good addition to the mix.

Thanks for the information (apart from that from the Y bot) and I'll keep reading and learning!

[bitchstewie]

Might be worth a read especially the info graphic:

http://monevator.com/using-vanguard-lifestrategy-f...
http://monevator.monevator.netdna-cdn.com/wp-conte...

[BanzaiMan]

red_slr said:

Someone like Vanguard has not been going long enough to see how they handle a dip .

They've been around >40 years

[anonymous-user]

bhstewie said:

Might be worth a read especially the info graphic:

http://monevator.com/using-vanguard-lifestrategy-f...
http://monevator.monevator.netdna-cdn.com/wp-conte...

Cheers bhstewie - I'll take a good look.

[FredClogs]

You want the moon on a stick you do...

An absolute return fund or some mixed asset fund maybe the way but to match inflation each year for 8 will be a tough ask and fees will play a big part, plus maybe 10% in cheap trackers.

If you can budget it a fund that pays a yearly or bi annual income rather than monthly might be better at preserving capital.

[anonymous-user]

BanzaiMan said:

red_slr said:

Someone like Vanguard has not been going long enough to see how they handle a dip .

They've been around >40 years

I've not used my ISA allowance this year so assume that I can use an ISA wrapper for these SLS funds? That's £40K sorted and tax free by April 6th.

[red_slr]

BanzaiMan said:

red_slr said:

Someone like Vanguard has not been going long enough to see how they handle a dip .

They've been around >40 years

Sorry I should have said VLS products not the company.

[bitchstewie]

garyhun said:

I've not used my ISA allowance this year so assume that I can use an ISA wrapper for these SLS funds? That's £40K sorted and tax free by April 6th.

That's how I'd see it yes. You can dump or drip up to £20k/year.

[BanzaiMan]

red_slr said:

BanzaiMan said:

red_slr said:

Someone like Vanguard has not been going long enough to see how they handle a dip .

They've been around >40 years

Sorry I should have said VLS products not the company.

In theory they should be tracking the markets (and have shown to do that well), so as long as you are happy with the underlying markets they are following (e.g. happy with UK bias and bond duration) they would seem to be a good choice.