Company Stakeholder Scheme Investment Help!

Jakestar

I've recently signed upto my companies stakeholder pension scheme, its with Legal & General.

Im 24 so got in relatively early.

L&G allows me to choose which ever funds / lifestyle profiles I wish and its easy to switch around online.

The default choice is a UK Equity Index Fund Lifestyle portfolio (lifestyling kicks in 10yrs from retirement age).

I've had a look on the website and it appears this fund is within their "Moderate Risk" category.

There are lots of funds (non-lifestyle and lifestyle) to choose from and I have no idea which one would best suit me! Would an IFA be able to provide some guidance to me on which one to select?

I basically need some reccomendations rather than me just picking one becasue it sounds good... and I have no real inclination on judging investment options, so I'd prefer somoene who is qulaified and experience to choose for me!

I willing to be adventourous at the moment (as the plan has a long duration) but need some help choosing the correct fund.

Any thoughts?

dunstonh

Would an IFA be able to provide some guidance to me on which one to select?

Yes but it will cost you

basically 100% UK equity is not good investing. Its eggs all in one basket. If you intend to be a lazy investor (not working to a defined strategy, not reviewing and rebalancing etc) then look for the portfolio funds. Funds that automatically invest in the different areas and rebalancing within the fund.

Loughton_Monkey

You are young, and because of this, the 'normal' advice would be to avoid low or medium risk categories. This is because you have time to 'ride' the volatility. Even if the market goes down [say, a 15% mini-crash] it means you are still contributing your regular payments and buying more 'low cost' units that will rise substantially in the 'recovery' phase.

I agree with the above about over-exposure to UK. Your best strategy would be to look for good 'diversification' - perhaps towards those parts of the world, or economy, that you see as gaining wealth over the foreseeable future. Your choice. But I think it is worth looking more towards Asian, and 'BRIC' markets, perhaps, and commodities/Natural Resources. But don't ignore UK/Europe/USA completely.

phil80

Your company will use a Financial adviser more than likely. Ask whoever deals with the Scheme at your company as to who the scheme advisers are and give them a call and discuss it with them.

Jakestar

I shall get in touch with the pension provides, though from what I can gather all they will say is I need to speak with an IFA as they cannot advise? At least that is what the chap or did the introduction presentation stated!

Essentially the list of funds I can choose from is detailed here (I don’t want to go the SIPP route):

http://www.legalandgeneral.com/pensions-retirement/pensions/fund-types/

I was thinking of the following mix:

UK Equity Index Fund 40%
http://lt.morningstar.com/lc4pd0x6ai/snapshotpdf/default.aspx?SecurityToken=VAUSA05RRD]9]1]SAGBR$$PSA_160

GLG Continental Europe Fund 20%
http://lt.morningstar.com/lc4pd0x6ai/snapshotpdf/default.aspx?SecurityToken=VAUSA05RRA]9]1]SAGBR$$PSA_160

USA Equity Index Fund 20%
http://lt.morningstar.com/lc4pd0x6ai/snapshotpdf/default.aspx?SecurityToken=VAUSA05RRG]9]1]SAGBR$$PSA_160

L&G Far Eastern Fund 20%
http://lt.morningstar.com/lc4pd0x6ai/snapshotpdf/default.aspx?SecurityToken=VAUSA05RR1]9]1]SAGBR$$PSA_160

Does this sound like an OK mixture?

Lokolo

Yep that's the sort of idea you want. Personally I would put a little less in the index fund, maybe 10% but then spread it among Europe and USA. (30/25/25/20) but that's really just personal choice.