Hi guys,
45M UK, I'm going round in circles a bit over my S&S ISA portfolio, I was 100% equities until recently, but have decided to semi retire/go part time. I have tried to de-risk my portfolio and ensure liquidity, and ended up with 40% in cash ISA's of various durations around 4% and 60% in FTSE Global All Cap.
Whether this is the optimal solution is still up for debate, but it helps me sleep at night and will allow me to take the next step into semi retirement knowing that I have 5 years of spending put aside, and with a bit of belt tightening could maybe eek it out for 2 - 3 more years.
One thing I do know is I have little stomach for a 30% equity drop, despite having 5 years of cash, and wondered whether such a thing exists as a defensive 60/40 portfolio rather than just a vanilla 60/40 portfolio?
By this I primarily mean the 40% rather than just being in a global aggregate bond, could be split a bit more specifically to reduce max drawdown in a crash. For example I mean 10% cash, 10% short term government bonds, 10% long term government bonds, 10% gold. Just wondering if such a strategy exists that I could leverage, as I don't claim to have any edge for creating portfolios.