I am in UK and my current plan is as follows:
Throw as much into personal pensions as I can to fill up on 40% tax rebate
Save into Stocks and shares ISA to cover period from ER (49) to 55 when can access pensions
Get state pension forecast to work out how much due and when
Have 1 year of living expenses in cash account to be used if the markets are down
We will not be looking to 'reduce risk' when ER. The investments will stay where they are, with us gradually drawing down from them
That's basically the same plan that I have now.
So maybe I am not going all that far wrong?
Pension is covered as much as our LTD can afford.
We have 2 houses (1 Pri Res 1 let). Currently at LTV c.50% over both - both on good rates.
We have FU fund of c.2 years living costs.
The main thing is our savings, we currently have "spare" around £2k per month.
Our main savings pot was in PBs but we moved house and spent most of that (£80k) in the process.
Now building back up and looking for somewhere to put that £2k a month. PBs are not what they used to be and 123 is maxed out at 1.5%.
I don't like ISAs in the current market, yes its a guaranteed return tax free but for 1-1.5% I cant see the point in locking money away for 3-5 years. I think the banks are getting a way better deal than the customer.
P2P sounds pretty good, I will look into that today.