UK PP down -1.6% YTD.
Blackrock funds ISF, IGLS, IGLT, SGLN
Inflation is up at 10% though (CPI) and older RPI (retail price index) is running at 14%
Moderator: Global Moderator
That's not what HB said in his book, "Fail Safe Investing".mathjak107 wrote: ↑Fri Nov 25, 2022 8:05 am Well if markets are down where is all the money you spend down from cash coming from to refill for the following year if that is the source of spending cash ?.
Depending how far other assets are hit you may have to buy more of the other assets with any cash left further reducing your cash for spending going forward .
It would be a hell of a way to fund a retirement that way when you have bills to pay and need a certain amount of money to get you through the year .
So spending down that cash at the same time other assets are falling and have to be bought to rebalance can leave you with little cash to live on or certainly a lot less .
You may want to really think trying to live off the cash in the pp if that was the plan.
I am retired and living off my portfolios for over 7 years but I would never try to use the cash that was an integral part of the portfolio as my spending money to live off of.
That is money with two very distinct different purposes
Ok, but what do you do when you retire & start to drawdown the PP. HB says draw down the Cash and Craig & Tex's book says to skim off the asset/s that are above your target allocations. One of the benefits of the HBPP is that your Emer Fund is baked in and as far as rebalancing, you always have dry pow.mathjak107 wrote: ↑Mon Jan 09, 2023 5:18 pm Harry didn’t live in our world as it exists today.
He may have done things very differently.
You really want to go by. What makes sense and drawing large amounts of cash to live on will unbalance the assets of the pp even if still at the fringes of the bands .
If you rebalance them to get back your protection ,then you may be doing the same thing anyway you wanted not to do , like selling other assets when things are down.
Hey , you all can do as you. Like , but I wouldn’t use the cash portion as a checking account unbalancing everything
In Harry's time, stocks might have been dropping 4% dividend yield into 'cash', as might cash and bonds been paying 6% interest rates also dropping into 'cash'. Expansion of cash by 16% each year, 25% weighted and drawing 4% as income = basically spending dividends and interest.johnnywitt wrote: ↑Mon Jan 09, 2023 5:31 pmOk, but what do you do when you retire & start to drawdown the PP. HB says draw down the Cash and Craig & Tex's book says to skim off the asset/s that are above your target allocations. One of the benefits of the HBPP is that your Emer Fund is baked in and as far as rebalancing, you always have dry pow.mathjak107 wrote: ↑Mon Jan 09, 2023 5:18 pm Harry didn’t live in our world as it exists today.
He may have done things very differently.
You really want to go by. What makes sense and drawing large amounts of cash to live on will unbalance the assets of the pp even if still at the fringes of the bands .
If you rebalance them to get back your protection ,then you may be doing the same thing anyway you wanted not to do , like selling other assets when things are down.
Hey , you all can do as you. Like , but I wouldn’t use the cash portion as a checking account unbalancing everything