Dismal pension performance

Faraday_Cage

just google passive investing, checkout monevator, create a balanced portfolio of low cost trackers and you'll get back on track.

I hadn't come across monevator but have just had a quick look, there's a huge amount of information there and lots to learn.

Thank you for your advice and encouragement.

Faraday_Cage

Don't see a problem with that.

You ''.....don’t see a problem......'' with 0% growth in 5 years? And this is not a mess? If so you must be right – there is a big hole in my understanding.

Is the adviser responsible for the credit crunch and global recession?

I have just been told that before I respond to that I must count, very slowly, to a hundred...

...do some reading yourself

I do agree with you there.

I think at the moment you need to go back to the adviser and tell them that you don't understand investing and ask them to explain it to you

Actually if I ever went back to that adviser it would be to tell him that he doesn't understand investing.

Lokolo

Faraday_Cage wrote: »

You ''.....don’t see a problem......'' with 0% growth in 5 years? And this is not a mess? If so you must be right – there is a big hole in my understanding.

Not when 2007 had a massive crash, its likely your original investment went down, a lot, and your contributions + growth are only just getting it back to its value.

Instead of looking at the 5 year valuation, get the yearly valuations and see how the growth is on a year by year basis.

Actually if I ever went back to that adviser it would be to tell him that he doesn't understand investing.

No, I suspect it's you that doesn't, not him.

Edit - FYI here is a chart shwoing HSBC FTSE All Share tracker. As you can see, in 1 year, from 2007-2008, it almost halved. So there was a lot of loss. Even if you had invested in trackers, you still wouldn't have got away from the big loss.

Unfortunately I don't know what you have invested in exactly, so it's difficult to say whether the funds you have were decent or not.

DiggerUK

Faraday,
When I hear those peddling pensions saying don't blame me for your problems, it reminds me of cigarette makers who used to say don't blame us for lung diseases.

This crisis is not going to be painless, but there are lots of ways to better protect an income in retirement. Pensions are getting hit hard, even final salary pensions could be hit hard if inflation takes off.

Take a deep breath, calm down, do some research, and make your own decision in good time.
There is a lot of doom, but it isn't all gloom. Best of fortune.
..._

dunstonh

I suppose what was getting at is the money would have been better in a building society but you're absolutely right, of course, and thank you for your correction.

You will always have periods that underperform cash. You average them out with the periods that outpeform cash. You cannot look at growth periods or negative periods in isolation.

You ''.....don’t see a problem......'' with 0% growth in 5 years? And this is not a mess? If so you must be right – there is a big hole in my understanding.

I suggest you look up credit crunch and global recession. You may not have realised the events of the last 5 years.

Actually if I ever went back to that adviser it would be to tell him that he doesn't understand investing.

You havent mentioned the investments once in your thread. So, we cannot give a view on what the adviser did. However, the fact you cant understand why your fund has providing a net figure of no growth over that period does indicate you do not understand investing.

If we take the 5 year period before that, you could double your money. That period was not the norm and the period of the global recession and credit crunch is not the norm either. Hence you average out the long term figure and not look at short term periods covering one bit of the economic cycle in isolation.

Anyway, it appears you want to listen to the least helpful posters on this site and not those that know what they are talking about. Some people are beyond help.

BLB53

I imagine there will be transfer fees to look out for........any other pitfalls I should be aware of?

I don't think there are any fees to pay on the transfer to Sippdeal - but check with Skandia if there are any penalty fees for moving away.

If you want to post a list of the unit/investment trusts which have done ok, people could comment as to whether they think they are suitable to hold within the sipp?

Monevator is a great website, also you might checkout www.retirementinvestingtoday.com for a few more ideas on the diy approach.

Eellogofusciouhipoppokunu

DiggerUK wrote: »

Faraday,
When I hear those peddling pensions saying don't blame me for your problems, it reminds me of cigarette makers who used to say don't blame us for lung diseases.

This crisis is not going to be painless, but there are lots of ways to better protect an income in retirement. Pensions are getting hit hard, even final salary pensions could be hit hard if inflation takes off.

Take a deep breath, calm down, do some research, and make your own decision in good time.
There is a lot of doom, but it isn't all gloom. Best of fortune.
..._

I have my pension in a SIPP. I read between the lines and sold everything into cash before the stock market crash and then bought back once things settled down. I've seen 31% gains across the whole of my portfolio, with the best fund (Invesco Perpetual UK Aggressive Accumulation Units) gaining 58.51% since I bought back in in 2009.

Not everyone's pension is tanking.

Faraday_Cage

DiggerUK wrote: »

Take a deep breath, calm down, do some research, and make your own decision in good time.
..._

Perhaps the best advice so far. Thank you.

Definitely a time for research and reflection rather than action - I'm thinking now may be a bad time to jump ship and maybe I should wait until the funds have at least gone back to par before moving?

Faraday_Cage

dunstonh wrote: »

You will always have periods that underperform cash.

Twenty-year ones?

Linton

Faraday_Cage wrote: »

Perhaps the best advice so far. Thank you.

Definitely a time for research and reflection rather than action - I'm thinking now may be a bad time to jump ship and maybe I should wait until the funds have at least gone back to par before moving?

A basic feature of investing: whether your current investments have lost or gained doesnt matter for the future - it has happened and there is nothing you can do about it. What is important is what investments you believe will take you from where you are now to a better place. When you have researched, reflected, and come to a conclusion then that is the time to move.