I will admit that I haven't read all five pages of this thread. But let's go back to your example above of someone who has €600,000, takes the €150,000 tax-free lump sum, lives on it for as long as s/he can before touching the ARF, keeps the €150,000 in cash and invests the other €450,000 in equities etc., without worrying about sequence risk. (I know that this is not Sarenco. I guess this is Sarenco 2 - The Sequel. And like so many sequels it's not as good as the original. The original has €600,000 in the ARF. The sequel only has €450,000.)Whilst I have you on the line, as it were, Liam! - anything else to add (solutions wise!) on de subject?!
Anyway, Sarenco has pointed out that he uses the tax-free cash to pay off the mortgage. So he can't rely on the tax-free lump sum for income. Perhaps it has been mentioned already but couldn't he invest 25% of the ARF assets (or any other percentage) into cash or other relatively safe, liquid assets and draw the mandatory income from that? Invest the other 75% in equities without worrying about sequence risk.