Getting old and worried where it’s all going?

Daledog

I had a pension with one of the major insurance providers but got talked into putting it into one of the now nationalized major banks 2007.Fortunatly it was in cash when the market collapsed but is still in cash now and steadily losing money (because of what must be minus interest payments and charges) albeit nothing like the big drop avoided by the crash.

I still don’t trust the market for going back in with equities as I think with the cuts and general downturn things will get a whole lot worse before they get better!
Like many I am at a loss with the current climate with retirement looming doe’s one keep in cash making nothing and loosing re inflation? Or take a chance on a market?
Everything seems such a gamble and I’m not the gambling type. Especially as I am nearing retirement. I have always been a saver but earned to save for old age and retirement not to gamble it all in the last years on a boom or bust guess on the markets.

I struggle to trust banks and financial advisors as I think in the main see you as commission and will put you in anything (subject to FSA rules) to get theirs. They surely are a load of guessers also, albeit better informed guessers and you see so much conflicting advice the whole thing seems a lottery!
It really seems to be a giant casino with nearly all the players loosing other than the smart traders that buy and sell short etc day to day and with whom us normal mortals never get involved with.

Is everyone in this boat and sees it like this or is it just cautious old Victor Meldrew me?
Can someone convince me I am wrong?

Is there a direction I am missing?

dunstonh

I still don’t trust the market for going back in with equities as I think with the cuts and general downturn things will get a whole lot worse before they get better!

OK, so if we take a risk scale of 1 to 10 (based on unit linked funds with cash savings starting at 1 and the riskiest unit linked fund being 10), you dont want to go back into equities which typically kick in around risk 6 upwards and you are currently in cash at risk 1. Why are you looking at both extremes and not in between?

Like many I am at a loss with the current climate with retirement looming doe’s one keep in cash making nothing and loosing re inflation? Or take a chance on a market?

How do you plan to take you retirement income? An unsecured pension income or secured pension income? If unsecured, then timescale will differ to secured option.

I struggle to trust banks and financial advisors as I think in the main see you as commission and will put you in anything (subject to FSA rules) to get theirs.

That is correct with sales reps but is very unfair of advisers. Especially those operating on an agreed fee basis (which is how you should do it).

They surely are a load of guessers also, albeit better informed guessers and you see so much conflicting advice the whole thing seems a lottery!

Nobody has a crystal ball and you shouldnt expect it. Also, investing is about opinion, knowledge and experience. You will get different opinions. Especially if you have seen bank sales reps in the past rather than independents. Bank sales reps work to a lower remit under tied or multi-tied advice. The remit doesnt allow them to consider a wider range of options. Sales processes generally encourage them to rubbish alternative options as they want to sell to you. You need to split the classification between sellers and advisers. You appear to have used sellers in the past (based on your saying you used a bank).

t really seems to be a giant casino with nearly all the players loosing other than the smart traders that buy and sell short etc day to day and with whom us normal mortals never get involved with.

Its nothing of the sort unless you want it to be. There is no need to micromanage it like that.

Is there a direction I am missing?

At the moment you seem to be focusing on putting it all on black (to go with your casino analogy). That is never how you should invest. Going 100% cash is not a good idea just as going 100% equities is not a good idea. Diverse portfolios built before the crash are now getting back above where they were before the crash. However, if you were 100% equity based, then they wouldnt.

jrexgis

I think I shouldn't be the one thanking you first but still i thank you for that great reply Duns.. you've been a great help..

Daledog

Yes a good and very sensible reply ,thank you ,sorry about my slanted view it must be my Victor Meldrew side taking over .You make it sound so easy .