Thanks for your reply jg12345.
And, lastly, even bonds are not safe (In my scenario 2). But hopefully if I get in ASAP, with no further interest rate rises, bonds wont crash. I am expecting rate cuts so hopefully my 75% bonds in the pension may even go up. Apologies, such discussion is against the spirit of this forum.
I have no idea if I will go away to India or not. I never decide, I take one day at a time. I didnt move to UK by choice. I was based out of the US, came to UK on short term ( 6 weeks) which became 6 months, and now I have spent 20 years. I have never planned a move. Circumstances force me and I follow suit. Eons ago, I was reluctant to leave India to go to the US for higher studies. I applied for PhD but secretly prayed that I would be denied a scholarship. Without scholarship I could not afford to go to the US. But unfortunately I got the scholarship and I had to go due to FOMO. My whole life has this pattern.
I enjoyed the UK summer 3 weeks ago. I would hate to leave UK for good. But then I get my hearing problem only in the UK. I dont like living in India so much, I miss the parks, footpaths and silence of UK and private medical care in Harley Street, Marylebone, London. I may not get a job in India at my age. In UK job may still be possible. But India is where my elderly mother lives and I need to see her frequently. She doesnt want to come to the UK. I thought I would find a gig in UK where I can stay 7 months in UK and take off 5 months to India so I stay less than 182 days in India, but not sure if this is all going to work out. Employers may not like that. Or I could retire but without owning a home in UK I dont know if my £2.5 million net worth is enough to retire in UK (as a single person). Rent is the killer here. Rent will keep going up, way above inflation, in the SouthEast where I live, not sure I want to move up north. CFiresim says I can spend 40,000 per year (Inflation adjusted) and not run out in 40 years but I dont know. So my future plan is quite uncertain.
I thought Scenario 1 was the least worst option because it closes some loops and yes, the money moves to a taxable account but I can turn up the knob on equities in the pension pot and not need to access it for a while. But I guess Scenario 2 is also ok, I have to pray damned bonds dont crash. So far bonds have given me nothing but trouble in life. Poor returns as long as I can remember and periodic crashes.
Thanks
I did consider this approach but I would need to keep the rest (75%) of the pension pot as well in "safe" investments (Scenario 2), right ? - because if it crashes the pension pot valuation will reduce, and 25% of the pot may no longer be 250K. Setting aside cash of 250K doesn't help in and of itself, am I right ?I think Scenario 2 seems the most reasonable. I wonder if it helps thinking it out this way:
1) 25% of SIPP in short term bonds, ready to take out
2) all the rest invested as per allocation, with the point 1) investments considered as part of your bond allocation (which I suppose will be rather high?)
And, lastly, even bonds are not safe (In my scenario 2). But hopefully if I get in ASAP, with no further interest rate rises, bonds wont crash. I am expecting rate cuts so hopefully my 75% bonds in the pension may even go up. Apologies, such discussion is against the spirit of this forum.
I have no idea if I will go away to India or not. I never decide, I take one day at a time. I didnt move to UK by choice. I was based out of the US, came to UK on short term ( 6 weeks) which became 6 months, and now I have spent 20 years. I have never planned a move. Circumstances force me and I follow suit. Eons ago, I was reluctant to leave India to go to the US for higher studies. I applied for PhD but secretly prayed that I would be denied a scholarship. Without scholarship I could not afford to go to the US. But unfortunately I got the scholarship and I had to go due to FOMO. My whole life has this pattern.
I enjoyed the UK summer 3 weeks ago. I would hate to leave UK for good. But then I get my hearing problem only in the UK. I dont like living in India so much, I miss the parks, footpaths and silence of UK and private medical care in Harley Street, Marylebone, London. I may not get a job in India at my age. In UK job may still be possible. But India is where my elderly mother lives and I need to see her frequently. She doesnt want to come to the UK. I thought I would find a gig in UK where I can stay 7 months in UK and take off 5 months to India so I stay less than 182 days in India, but not sure if this is all going to work out. Employers may not like that. Or I could retire but without owning a home in UK I dont know if my £2.5 million net worth is enough to retire in UK (as a single person). Rent is the killer here. Rent will keep going up, way above inflation, in the SouthEast where I live, not sure I want to move up north. CFiresim says I can spend 40,000 per year (Inflation adjusted) and not run out in 40 years but I dont know. So my future plan is quite uncertain.
I thought Scenario 1 was the least worst option because it closes some loops and yes, the money moves to a taxable account but I can turn up the knob on equities in the pension pot and not need to access it for a while. But I guess Scenario 2 is also ok, I have to pray damned bonds dont crash. So far bonds have given me nothing but trouble in life. Poor returns as long as I can remember and periodic crashes.
Thanks
Statistics: Posted by bluejeansman — Sun Jul 21, 2024 12:45 pm — Replies 12 — Views 2424