Should I be concerned

gh67

LHW99 wrote: »

Also if you invested in Nov. 17, 1 year is hardly long enough to evaluate performance, particularly after such a generally volatile year as said above.

I suppose it is it just when a few people in the same situation have earned 4% after fees, for me to make that up next year mine has to preform at 7% this year.

Malthusian

gh67 wrote: »

I suppose it is it just when a few people in the same situation have earned 4% after fees, for me to make that up next year mine has to preform at 7% this year.

Are you planning on cashing in the entire fund and spending it next year? If not why does it matter?

In ten years your friends will be asking why they were dumped in Prufund instead of a transparent unit-linked portfolio like yours.

Thrugelmir

gh67 wrote: »

Thanks again sorry I didn't realise what you meant by timescale, I have checked my fund regularly but and apart from the first 10 weeks its always been lower than I invested. I invested at the end of Nov 17.

Did you move the funds out of a DB pension scheme?

gh67

Thrugelmir wrote: »

Did you move the funds out of a DB pension scheme?

Yes I did and I know folk will say I would have been better to leave it where it was but I have my reasons for moving it.

If I left it there I couldn't take it until i'm 62 unless with penalties, I plan to retire early and with other small investments i will be able to live on half my income from the age of 55. I wont touch this pot until I'm nearer 60.
I only had 20 year in it so would only ever be 1/3 of my income at the time of closure a couple of years ago, as my company has now changed hands its no longer salary linked although it will go up with inflation which might be similar apart from I've had a significant promotion since.
If worse case I pass away before retirement my spouse would only receive halve of my yearly pension, this way she receives full pot or my Daughter will. I still have 6 x salary for death in service.
If it doesn't preform as good as I hoped then worse case scenario is I have to work until possibly 57 so still 5 years early.
I'm currently debt and mortgage free and own several properties.

gh67

Malthusian wrote: »

Are you planning on cashing in the entire fund and spending it next year? If not why does it matter?

In ten years your friends will be asking why they were dumped in Prufund instead of a transparent unit-linked portfolio like yours.

I hope not to touch this pot for 8 year min, I assume by your answer you think over 10 years this will come good or at least OK.

Dox

gh67 wrote: »

Yes I did and I know folk will say I would have been better to leave it where it was but I have my reasons for moving it. Hopefully you understood the full implications of moving it and ensured that your reasons held good

If I left it there I couldn't take it until i'm 62 unless with penalties, Don't forget 'penalties' simply reflect the fact that your pension is being paid sooner than expected and will be paid for longer than if you'd waited until you are 62. Moving it to a defined contribution arrangement gives you 'penalties' for taking funds 'early which are sometimes overlooked: i.e. the pot has less time to grow the sooner you start to draw it; and if you decide to buy an annuity, rates are age related, so the younger you are the smaller the annuity. You may well be fully aware of all this but I've included it in case others reading this thread aren't as clued upI plan to retire early and with other small investments i will be able to live on half my income from the age of 55. I wont touch this pot until I'm nearer 60.
I only had 20 year in it so would only ever be 1/3 of my income at the time of closure a couple of years ago, as my company has now changed hands its no longer salary linked although it will go up with inflation which could well beat your own investment choices - as is the case here, or at least it is currentlywhich might be similar apart from I've had a significant promotion since.

Hope the above comments might be helpful to someone reading this thread.

gh67

Dox wrote: »

Hope the above comments might be helpful to someone reading this thread.

Thanks for that and yes I'm aware of all you have quoted and think what I'm doing is right for me and my financial circumstance, I know its not right for everyone and each indivdaul should do whats right for them.

OldMusicGuy

It's worth reading up a bit about investing because you are making the classic mistake of a newbie investor. You "trust" an IFA but as soon as another fund shows slightly better performance, you get nervous and consider switching. Chasing funds based on short term performance is one of the worst mistakes investors can make. If you can't take market ups and downs, you should have stayed in the DB pension.

I suggest you read up on how funds work, risk levels, mix between equities and bonds (and other investments) and have a discussion with your IFA on a more informed basis so that you can be sure you have a good investment strategy and are in the right funds. Otherwise you will always be looking over your shoulder.....

FWIW it's taken me about 5 years to learn this lesson.

Thrugelmir

gh67 wrote: »

Yes I did and I know folk will say I would have been better to leave it where it was but I have my reasons for moving it.

If I left it there I couldn't take it until i'm 62 unless with penalties, I plan to retire early and with other small investments i will be able to live on half my income from the age of 55. I wont touch this pot until I'm nearer 60.
I only had 20 year in it so would only ever be 1/3 of my income at the time of closure a couple of years ago, as my company has now changed hands its no longer salary linked although it will go up with inflation which might be similar apart from I've had a significant promotion since.
If worse case I pass away before retirement my spouse would only receive halve of my yearly pension, this way she receives full pot or my Daughter will. I still have 6 x salary for death in service.
If it doesn't preform as good as I hoped then worse case scenario is I have to work until possibly 57 so still 5 years early.
I'm currently debt and mortgage free and own several properties.

Not passing any judgement on your personal decision. More concerned that you are worried over short term performance. Volatility is normal for markets. A decade of smoothing following interventionist Central Bank policies has endeared a huge amount of complancency in investors. Equities are a long term investment. Not for the faint hearted.

gh67

OldMusicGuy wrote: »

It's worth reading up a bit about investing because you are making the classic mistake of a newbie investor. You "trust" an IFA but as soon as another fund shows slightly better performance, you get nervous and consider switching. Chasing funds based on short term performance is one of the worst mistakes investors can make. If you can't take market ups and downs, you should have stayed in the DB pension.

I suggest you read up on how funds work, risk levels, mix between equities and bonds (and other investments) and have a discussion with your IFA on a more informed basis so that you can be sure you have a good investment strategy and are in the right funds. Otherwise you will always be looking over your shoulder.....

FWIW it's taken me about 5 years to learn this lesson.

I trust my IFA but sometimes its nice to get reassurance, I have a meeting with him in the next few days and he's already told me he's happy with the funds. I can take ups and downs and understand this and in no way am i thinking of changing funds, just looking for the more informed opinion and I think to answer my question it looks like I shouldn't be concerned.

Thanks for your reply.