It seems everyone advises that in pension mode you keep a couple of year worth of cash to draw from to avoid forced sale of shares at low prices in a downturn. I resent this as the cash is not earning enough. I reckon we have some reliable growers that I do not want to sell significantly to raise cash. Therefore I am thinking to have the only cash as it comes in from dividends and keep half our assets in the growers and the other half in reliable franked dividend payers e,g, LICs e.g. CAM, Argo, Soul Pats. They have historically paid AND MAINTAINED divs through thick and thin. After franking the div yield would be around 6% and cover half the pensions. The obligatory pensions must be 6% at my age. From the 8 carefully chosen growers I reckon (and proven) I can get a conservative 12% growth average p.a. so I would sell 6% to complete the pension. On paper, I have applied this thinking to 3 scenarios which are A) average years when the growers come in at 12% B) bad years when both earners and growers are down 30% C) good years when earners are up around a conservative 10% and growers 30%. I take into account that the pensions will be 6% of the total assets i.e. small in bad and high in good. We can actually live o.k. with zero pensions and I’d rather just let the super grow or even pay the 15% tax on earnings but I’m not sure if that can be done. With annual recalculations, by my amateur reckoning, and in our circumstances, I think this works. I think I have a dilemma with the SF Strategy acceptance by the ATO and Actuary. Please comment, call me a dill, call me naive, whatever.