Work pension vs saving accounts

ffacoffipawb

Marine_life wrote: »

I suspect this was originally drafted in crayon.

... and the calculations were checked by John McDonnell.

Afraid_of_Kittens

What type of NEST pension do you have - where are the funds - are they languishing in a defaut fund or have you transferred them?

My funds have gone into the Sharia fund - 96.6% return in 5 years.

https://www.trustnet.com/fund/price-performance/p/pension-funds?manager=NETF&tab=fundOverview

AnotherJoe

Afraid_of_Kittens wrote: »

What type of NEST pension do you have - where are the funds - are they languishing in a defaut fund or have you transferred them?

My funds have gone into the Sharia fund - 96.6% return in 5 years.

https://www.trustnet.com/fund/price-performance/p/pension-funds?manager=NETF&tab=fundOverview

I was intrigued by what a Sharia investment would look like.
Apparently much like a technology trust !
A decent performer compared to most NEST funds I suspect


1 MICROSOFT CORP 6.70 %
2 APPLE INC 6.10
3 ALPHABET INC 5.40
4 JOHNSON & JOHNSON 2.90
5 FACEBOOK INC 2.70
6 EXXON MOBIL CORP2.50
7 PFIZER INC 2.10
8 VISA INC 2.00
9 PROCTER & GAMBLE CO 1.90
10 INTEL CORP 1.8

hugheskevi

I was intrigued by what a Sharia investment would look like.
Apparently much like a technology trust !
A decent performer compared to most NEST funds I suspect

Several years ago, I heard that the reason it was the best performer from the NEST fund selection was that due to it not being able to hold investments paying interest it was more heavily weighted to equities than the other NEST funds.

If so, then its performance over the other funds is primarily reflecting a risk premia during a period that has rewarded risk.

bowlhead99

hugheskevi wrote: »

If so, then its performance over the other funds is primarily reflecting a risk premia during a period that has rewarded risk.

Yes, the other NEST funds (other than the 'lower growth' fund which is entirely in short duration investment-grade bonds) are mixed asset funds where even the 'higher risk' mixed asset fund is only 70-80% equities (as there is 20-30% of bonds, property, property shares and commodities). The Sharia fund offered by NEST is their highest 'risk' fund with biggest projected annual volatility.

Something that focuses exclusively on equities (even if certain industry sectors are excluded to make it Shariah compliant) will generally do better in an equities boom than something containing fixed interest assets and diversifiers such as commodities and lightly-leveraged property. But as it invests in a single asset class it will suffer terribly in a global equities downturn and if you are the type of person who watches your pension balance on a weekly or monthly or quarterly or half-yearly basis, it will make painful reading in some years.

FWIW, I do agree that the OP is garbage.

Firefax

Thank you to all of you, I am not an expert and as I thought I missed some major things like employer contribution etc. Now it all makes sense.

AnotherJoe

Please invest it, not save.