Hi all. I am 58F (very nearly 59) and just got made redundant. All my thinking was that I would start reducing my work over the next few years so I was still in the accumulation phase. All of a sudden I am retired with no idea of what to do with my finances.
My son is at uni for another year so that will cost me around 12k. Normal spending on bills / food etc is 30k per year.
My position is:
- Cash 64k
- Premium bonds 50k
- Cash ISA 60k (fixed 4.1% until 08/27)
- Vanguard S&S ISA 160k (25% VWRP 75% VUAG)
- Vanguard GIA 220k (70% VWRL, 25% VUSA)
- Pension 900k (50% index trackers)
- Full state pension in 8 years
- House 1.7 million (no mortgage) no intention of selling or downsizing
I know I have enough to retire but my immediate problem is I am not sure what to do with this years ISA allowance. I can also invest another 10k in to my pension. I am going to sell around 20k from the GIA to put in to the ISA which will use up the CGT allowance for this year.
Should I reconfigure the GIA to be more invested in gilts / bonds to provide an income? Should I be shifting my S&S isa to something that pays dividends and use that as income or do I just sell investments to provide an income? I am worried that I should have diversified my portfolio as the advise seems to be to do that a few years out from retirement. I was planning on living on cash for a bit and maybe selling some of the GIA and paying some CGT. This years tax free allowance will be used but I could take some pension to use up the 20% allowance. I am heavily invested in the US and I am nervous of any crash although I know I will be ok as I have enough cash to last a while.
Feeling overwhelmed and slightly (but /probably/ unjustifiably) worried. Any advice?