Newbie question: Pensions and declining share values

hozepipe

OK I've just realised that my IFA is not an IFA, he is with Zurich/Openwork which from my understanding means he is not looking at the whole market, at least for insurance/pensions to get the best deals for me. Is that right?

(If so I take back anything I have said about IFAs!)

dunstonh

OK I've just realised that my IFA is not an IFA, he is with Zurich/Openwork which from my understanding means he is not looking at the whole market, at least for insurance/pensions to get the best deals for me. Is that right?

Correct. He is tied. Effectively, its old Allied Dunbar. Or Allied Crowbar as they used to be known as. Research has shown that over half of people seeing a tied agent thought they were seeing an IFA. So, you are not alone.

(If so I take back anything I have said about IFAs!)

You wait, you will go find a bad one now!!!!

So diversification or equities helps ameliorate things?

Diversification helps spread the risk and can increase the potential. However, you want to be wary of a hit and hope approach where you put random amounts in the different sectors. A strategy that shows a spread that matches your risk profile is important.

purch

But your thoughts, as far as I can tell are basically buy low, sell high

I think you are either misunderstanding me or misrepresenting me.

All I am saying is that buying into a sustained Bear market is probably not a good idea.

we don't have crystal balls

Nope, which is why I would rather buy in a market that is rising, than one that is falling.

dunstonh

Nope, which is why I would rather buy in a market that is rising, than one that is falling.

And when it that and when do you decide it is that?

For all we know the bottom of the market could be today or it could be in 2 years time. We may see a bottom that remains more or less stable for many years before recovery comes. You cannot predict the unpredictable so you may as well get on with it and ensure that you dont put all your eggs in one basket and rebalance.

If you really believe you can spot the points in the market then nothing stops you using cash in a pension and picking your moment. However, as history shows, most that belief they can time the markets end up being wrong with just a limited number who end up getting it right, and thats usually down to luck.

purch

You cannot predict the unpredictable

you can spot the points in the market

most that belief they can time the markets end up being wrong

(SIGH) :rolleyes:

It is because I cannot predict the unpredictable, or spot the exact points in the market, or believe I can time the market, that I will wait until the market is moving higher in what appears to be a sustainable manner until I buy into it.

I will not buy into a market that has been a clear Bear market for a number of months, in the desperate and vain hope that by magic I'll manage to hit the bottom.

I cannot time the market, I cannot spot the bottom of the market.

I can see a trend....and the trend should be your friend.

Continuing to buy into this Bear market, makes the trend your enemy.
Is that so hard to understand ??