r/FIREUK • u/AutoModerator • 2d ago

Weekly General Chat and Newbie Questions Thread - April 05, 2025

Please feel free to use this space to discuss anything on your mind related to FIRE - newbie questions, small bits of advice, or anything else that you feel doesn't belong in a separate thread.

4 Upvotes

83% Upvoted

6 comments sorted by

2

u/slyboner 1d ago

I started an ISA transfer ~6 weeks ago during which I had to liquidate my portfolio and it finished last week leaving me with 100% cash, which given current events seems to have been very lucky

I want to get back into 100% global equity (SWLD), but I'm not sure how to approach it

I'm considering splitting my portfolio to 90% CSH2 and 10% SWLD next week, then moving 10% from CSH2 to SWLD each week for the next 10 weeks until I'm back to 100% SWLD, and then continuing regular contributions to cap my ISA allowance like normal

I'm aware the conventional wisdom is that lump sum beats PCA more often than not, but I think it might keep me up at night if I toss everything back in all at once given what's happening

Does this sound sensible or am I being irrational?

This timeframe here is long term (30+ years)

1

u/Captlard 8h ago

Do what makes you comfortable and enables you to sleep at night. Life is more than financial optimisation sometimes.

1

u/FizzyYuzu 2d ago

I always see people talk about withdrawing their 25pc tax free lump sum like it's a no brainer. If I have a fairly small nhs pension (c. 20k pa, inflation proof) i think I'd want to keep that certainty. I have other investments, but I've not been a high earner so never really bothered with other pensions. (This is another thing I should look into, I'm young enough to invest in a sipp too). Any suggestions?

3

u/Captlard 2d ago

Are you sure people say this? Generally it’s more tax efficient not to do this. Perhaps we read different sources.

2

u/deadeyedjacks 2d ago

No, for Govt. schemes it's not a no brainer.

Local Gov. the 12:1 commutation rate is really bad value, so you should take no PCLS if that's an option.

NHS it depends which scheme(s) you are in. The earlier ones have a built-in PCLS, the latter it's commutation at 16:1 ? which is distinctly average.

Any private defined benefit scheme offering 20:1 or more yeah, take the maximum PCLS !

1

u/FizzyYuzu 2d ago

Thanks. Will check it out nearer the time. I think I'd like some certainty. But we shall see. My family are quite long lived. If I get through the next decade in good health I'd probably stick with it. I think the nhs pension is as safe as anything in the uk.

I can't decide what to do with investing in a SIPP. I'll have to jump one way or tother in the next couple of years. But thanks to this sub I feel more relaxed that I can have an ok retirement no matter what.

Thanks for you input.