- Joined
- 10 March 2009
- Posts
- 452
- Reactions
- 451
I am retired and mainly using an industry fund to fund a self funded retirement. My superannuation is set up in mainly balanced with a portion in bonds. I normally draw down on the balanced account. The plan was during recessions/slowdowns to swap to the bonds account for draw down until things return to normal market wise.
My plan was to a trigger to swap to bonds draw down when the return over the last 12 months on the balanced drops below a positive 4%. I draw down 4% per annum on a monthly basis and would review the 12 monthly return each month.
After swapping to the bonds account, I would continue to monitor and when the returns over a previous 12 months return to being 4% positive, I would swap the draw down back to the balanced account.
I have enough in the bonds account to last 18 months and review this each year in June.
I also have the option to put all the bond money back into balanced account if there was confidence we have bottomed on the share market, if there was any money left there.
As this slow down is the first time I may have to change the draw down, I am interested if others have used a similar approach and have any experience. Also after any opinions on the approach.
Iggy
My plan was to a trigger to swap to bonds draw down when the return over the last 12 months on the balanced drops below a positive 4%. I draw down 4% per annum on a monthly basis and would review the 12 monthly return each month.
After swapping to the bonds account, I would continue to monitor and when the returns over a previous 12 months return to being 4% positive, I would swap the draw down back to the balanced account.
I have enough in the bonds account to last 18 months and review this each year in June.
I also have the option to put all the bond money back into balanced account if there was confidence we have bottomed on the share market, if there was any money left there.
As this slow down is the first time I may have to change the draw down, I am interested if others have used a similar approach and have any experience. Also after any opinions on the approach.
Iggy
