Low Risk Pension

[Deleted User]

Call me ageist but someone in the 90s shouldn’t be investing.

OldMusicGuy

Deleted_User wrote: »

Call me ageist but someone in the 90s shouldn’t be investing.

I won't be. I will gradually annuitize what is left in the DC pot as I get older.

AnotherJoe

Deleted_User wrote: »

Call me ageist but someone in the 90s shouldn’t be investing.

Unless they have more than they need and are leaving it in their will.

cfw1994

Deleted_User wrote: »

Call me ageist but someone in the 90s shouldn’t be investing.

Come back in 2 years and tell Warren Buffett that :rotfl:

Thrugelmir

fred246 wrote: »

My sister employs an IFA to manage her pension. If you ever mention IFA or pension she repeats the words "low risk" about 20 times. Everything has to be "low risk". Will this sort of behaviour seriously damage your wealth?

If one cannot afford to lose the capital. Then taking an excessive amount of risk could potentially lead to personal disappointment. Risk comes in a considerable number of forms. Complacencey is an investors worst enemy.

One of my favourite quotes.

“If past history was all that is needed to play the game of money, the richest people would be librarians.”

Dox

fred246 wrote: »

My sister employs an IFA to manage her pension. If you ever mention IFA or pension she repeats the words "low risk" about 20 times. Everything has to be "low risk". Will this sort of behaviour seriously damage your wealth?

"Everything' can't be low risk. Low risk of capital loss = high risk of not keeping up with inflation, high risk of lost opportunities...

Time sister got a new mantra!

[Deleted User]

cfw1994 wrote: »

Come back in 2 years and tell Warren Buffett that :rotfl:

Funny you should mention that. Munger and Buffett are both pushing it. Something weird has been going on with Berkshire Hathaway. Does not seem to be run to maximize investor returns. If it was one of the companies they own, Buffett would have forced them to use generated cash for buybacks.

They might be getting ready for one of them to pass away and for what happens next.

username12345678

Risk is a funny word when it comes to investing.

My view of risk is that I won't have enough in retirement...and I would have thought that, for most of us, that's the aim of the game.

An overly-cautious approach from a young age with a heavy fixed-income allocation could be considered risky as the hidden ravages of inflation works its evil on your PF.

The flip side is that once you have 'more than enough' then even playing the game could be unnecessarily risky.

If your sister would be constantly checking her balance with a more aggressive equity allocation and be fretting about selling up at the first sign of turbulence then there is little point going down that road.