Pension Fund Choices

jcumpsty

Where is the best place to go to get advice on Pension Fund choices?

My small business, offers a stakeholder pension to our (2) employees. When I set up the pension plan, I elected for whatever the default funds where at the time. I would like to reconsider this choice, but dont know where to go for advice.

The pension is with Scottish Equitable.

What funds do other people on here invest in? How do you decide?

Thanks

dunstonh

Where is the best place to go to get advice on Pension Fund choices?

There is only one place. An IFA. Tied reps cannot provide advice on other company contracts and most cannot provide portfolio advice (its documented that they ascertain the risk and show you the funds that match your risk for you to pick - doesnt always happen like that but its how it is documented).

The IFA that is responsible for the plan would be a good choice as they are either being paid commission or fee for the plan.

What funds do other people on here invest in?

doesnt matter what others do. Your risk profile is unlikely to be the same. Nor your timescale, fund selection or investment experience. Its a personal thing and not one you should copy someone else unless they know what they are doing and you are identical to them.

How do you decide?

Personally, I prefer sector allocation linked to your risk profile and timescale but only if you are experienced enough or using an IFA for servicing. If you are inexperienced and not using anyone I would stick to default funds.

jcumpsty

Thanks for the advice. I have little faith in IFA's (or any "professionals" in most fields). I find that they stick the finger in the air just like the rest of us, as the current financial situation bares testiment to.

I dont really agree with "it doesnt matter what others do". There are so many choices of funds to pick from, yet the bottom line is that some do well and some dont. I agree that a persons willingness to take risk is a factor, and my risk level sits on the fence (bordering on risqu'e).

All I am looking for here, is peoples general, unoffical opinions on what their investigations have suggested, as to the types of funds that are likely to perform well in the future.

as for "not one you should copy someone else unless they know what they are doing"; that certainly wouldnt be an IFA, which is why I used Cavendish.

So, what choices have other people made for their own pensions? I think this discussion would be helpful, not to make decisions for me (and I am sure others), but to give people a steer for their own research.

Cheers.

dunstonh

So, you wont use an IFA who is qualified, experienced and authorised but will use a random unknown individual on a website. Very strange.

If you think that its just a case of sticking a finger in the air then why dont you just do that.

jcumpsty

dunstonh wrote: »

So, you wont use an IFA who is qualified, experienced and authorised but will use a random unknown individual on a website. Very strange.

If you think that its just a case of sticking a finger in the air then why dont you just do that.

Well, I am actually planning on doing just that...Making my own best guesses. I cant do any worse than IFA's I have used in the past have done with my investments.

I am not using a random unknown individual. I am just looking for opinions, from which to draw my own conclusions. I also watch the news.

I am sorry if I offended. I didnt read your sig. I didnt notice you are an IFA.

dunstonh

I cant do any worse than IFA's I have used in the past have done with my investments.

Yes you can. You can do a lot worse. You could do better as well.

However, your view is that the selection is random. Yet you will have investment strategies such as asset allocation, sector allocation, high yield and others which are used. None of these is necessarily better than the other and at different times they could all be the best for that period. Personally, I use sector allocation most of the time for growth. That is not at all random.

I am sorry if I offended. I didnt read your sig. I didnt notice you are an IFA.

A little offended that you make assumptions about all of us that way but dont let it worry you that I am an IFA. Its a discussion forum so lets discuss.

If you dont have the experience and knowledge with investments then you really are best sticking to the default funds. They almost certainly wont be the best option but if you start mucking around with fund choice you need to decide your strategy, keep it under review and rebalance the funds. If you dont then you can do far more damage than sticking with default.

I really believe that sector allocation is the best way to invest when using funds. However, I would say around half of what I do still ends up in bog standard balanced managed or lifstyle funds because the individual concerned doesnt want servicing and doesnt have the skills to do it themselves. I know that its not the best option and it wont give the best return but its best for them. Perhaps previous IFAs you have used have thought the same about you when making fund choices? Or maybe they werent IFAs but were FAs and had no choice?