Taking Pension. Monthly or Yearly?

[vand]

Markets have an upward bias - the longer you keep your money invested the better, in general; withdraw on a just-in-time basis.

[kempiejon]

Markets have an upward bias - the longer you keep your money invested the better, in general; withdraw on a just-in-time basis.

Markets can fall quickly you don't want to have to draw just after a drop. Allocate your assets.

[vand]

Markets have an upward bias - the longer you keep your money invested the better, in general; withdraw on a just-in-time basis.

Markets can fall quickly you don't want to have to draw just after a drop. Allocate your assets.

Yes it can - that has always been true. And if you can tell us when they just about to do so then you have a superpower than no one else does.

For the rest of us the aim should be to remain invested and ride out the rough periods.

The market rises on average 3 in every 4 years and go up on average 6-7%/year in real terms. If you make 1 large withdrawal at the start of the years you are foregoing, on average, a real 6-7% return on that chunk withdrawn.

[kempiejon]

Markets can fall quickly you don't want to have to draw just after a drop. Allocate your assets.

Yes it can - that has always been true. And if you can tell us when they just about to do so then you have a superpower than no one else does.

For the rest of us the aim should be to remain invested and ride out the rough periods.

The market rises on average 3 in every 4 years and go up on average 6-7%/year in real terms. If you make 1 large withdrawal at the start of the years you are foregoing, on average, a real 6-7% return on that chunk withdrawn.

Yes but you don't have to have your whole investment at the whim of the market when you're expecting to take out some cash. If next year is the 1 in 4 when the market doesn't rise then next year I won't want to withdraw cash - if you could tell me if that's right that'll help if not some of my money ear market for spending in the next 2 years is off the market.

[vand]

Yes it can - that has always been true. And if you can tell us when they just about to do so then you have a superpower than no one else does.

For the rest of us the aim should be to remain invested and ride out the rough periods.

The market rises on average 3 in every 4 years and go up on average 6-7%/year in real terms. If you make 1 large withdrawal at the start of the years you are foregoing, on average, a real 6-7% return on that chunk withdrawn.

Yes but you don't have to have your whole investment at the whim of the market when you're expecting to take out some cash. If next year is the 1 in 4 when the market doesn't rise then next year I won't want to withdraw cash - if you could tell me if that's right that'll help if not some of my money ear market for spending in the next 2 years is off the market.

The correct solution is to have an asset allocation that is aligned with your risk tolerance so that the portfolio can remain fully invested and you are comfortable making withdrawals even when it is in a drawdown... not to run a strategy that is too aggressive and therefore enticing you to hold more cash than is optimum.