Transfere pension to low risk fund?

gfiandy

Hi,

I currently have a balanced managed pension fund and have seen its value tumble in the last year and especially in the last 6 weeks. Should I transfer it out to a low risk fund such as a sterling fund or a money fund?

Regards,
Andrew

EdInvestor

No, because you will then miss the upturn when the recovery comes.Think long term, we have one of these downturns every 5 years or so, they are quite normal.

dunstonh

Ed is correct. Also, if you are still paying monthly then it is a great buying opportunity as you buying units at 2003 prices at the moment.

Investments zig zag. Its what they do and times like this occur more often than the media suggest. 8 since 1956 - last one was at the start of the millenium and the stockmarket dropped more in that period then has this time round.

Day_Trader

gfiandy wrote: »

Hi,

I currently have a balanced managed pension fund and have seen its value tumble in the last year and especially in the last 6 weeks. Should I transfer it out to a low risk fund such as a sterling fund or a money fund?

Regards,
Andrew

See how it has performed compared to its benchmark and equally look at other funds that are balanced managed to see if yours is a lame duck. Now is a good time to take stock and see how good the funds you hold are. Most funds have fallen but some more than others.

gfiandy

Well at least you are all consistant, my financial advisor said exactly the same thing. It just feels wrong leaving the investment in stock that is falling so fast with no end really in sight. All the talk is of a recession and probably a big one, won't that mean that stock will keep falling for some time to come? Couldn't I move it out then move it back after a few months consistant rise, looking at the graphs it seems stock falls fast but recovers slowly.

Compaired to other funds it has not done badly, it just compaired to what it was worth 3 months ago.

Regards,
Andrew

dunstonh

All the talk is of a recession and probably a big one, won't that mean that stock will keep falling for some time to come?

No. The markets react in advance. That is why it has been falling now. Its the fear of recession.

Couldn't I move it out then move it back after a few months consistant rise

Did you do that during the last bear market? are you going to do that in the next one?

sophistica

HI I am going to put a spanner in the works. I was on a financial trading seminar last month with a guru in the field. He explained about the likelihood/certainty of a stock market crash. A couple of days later I converted my SIPP to cash which is getting 4% interest and put my ISAs in a 4% cash park. I reckon I have saved myself about £25k in the last few weeks. I am going to forget about a buy and hold strategy for now and concentrate on making short term gains having done some prior research. Invest, take your profits, get your money off the table!

EdInvestor

It's typical of the novice investor (aka "mug punter") to buy high and sell low.Timing the market requires a crystal ball - otherwise all the advisors and fund managers out there would be rich and so would their clients.

For a long term investment like a pension, it is better for most people to get the asset allocation right, in line with attitude to risk, age etc and then just monitor the scheme annually watching out for changes to charges (which can have a substantial effect over the long term), any major events in the fund management universe that may affect you, and any significant changes in the balance of the portfoliuo due to market movements, which might suggest a redirection of future contributions.

Then just let it run for the long term..