Wednesday, November 21 2012
I have recently written in a blog about a problem I have with unitised "big bucket" super funds in pension phase - the way they force you to sell down growth assets at times that might not be ideal to do so.
Scott Francis in his recent Eureka Report - Feeling the pension pinch - thrashes this issue out in greater detail.
The solution is to build a distinct cash hub from where pension payments can be drawn and interest and income can be paid into, supported by a significant defensive fixed interest component.
An investor should never be forced to sell growth assets to pay pension payments at the wrong time.