Squeaky bum time!

vacheron

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

cfw1994

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

Question is more about what % is it down.  
Peak for mine was Feb 21st.   Currently down 4.8% against that, but actually up 1% from the start of Jan....

Thrugelmir

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

In 11 years time you could be facing another "event".  Until "events" occur many people rarely consider their appetite for risk seriously. Or the wisdom of their investment choices. 

[Deleted User]

Actually, events like this happen, on average, once a year. That is assuming it stays as a correction 

[Deleted User]

cfw1994 said:

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

Question is more about what % is it down.  
Peak for mine was Feb 21st.   Currently down 4.8% against that, but actually up 1% from the start of Jan....

What is your asset allocation? What are you reporting? Money weighted return? Or are you reporting large contributions in January? 

Parking_Trouble

Deleted_User said:

Actually, events like this happen, on average, once a year. That is assuming it stays as a correction 

So it's a regular correction of an overheated market, not the risk of the global economy being shafted by a pandemic?

Thrugelmir

Parking_Trouble said:

Deleted_User said:

Actually, events like this happen, on average, once a year. That is assuming it stays as a correction 

So it's a regular correction of an overheated market, not the risk of the global economy being shafted by a pandemic?

That's the nature of markets. Growth comes to a halt when a major event occurs. Whether it be war, a financial crisis, health issue or simply investors driving share levels to unachievable earnings ratings. Ultimately markets reflect the actions of millions of individual investors. The direction of the herd moves the price. 

cfw1994

Deleted_User said:

cfw1994 said:

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

Question is more about what % is it down.  
Peak for mine was Feb 21st.   Currently down 4.8% against that, but actually up 1% from the start of Jan....

What is your asset allocation? What are you reporting? Money weighted return? Or are you reporting large contributions in January? 

Mine?  Not entirely sure I understand what you are asking, sorry: I added one small amount (< 0.3%) in Jan, but essentially I am reflecting 'the entire pot' (haven't broken down the daily differences in the funds - probably should!)
Think I have posted fuller detail a few times, but briefly, my main 'pot' (all with Aviva) consists of this:

• 20% Pre-retirement Fixed Interest
• 15% BlackRock Over 15 Year Corporate Bond Index Tracker
• 15% BlackRock Over 15 Year Gilt Index Tracker
• 25% BlackRock World ex UK Equity Index Tracker
• 25% North American

Two rising days this week now: up 2.5% since start of Jan, now down 3.5% since the peak on 21st Feb.
That help?
Don't get me wrong - I am not in ANY way claiming to be an expert in this field, certainly not an IFA/FA, & I suspect we will see more challenging times in the weeks ahead, but I remain optimistic this isn't the end of the world as we know it.  If I felt that, I'd be investing in canned food, bottled water and razorwire for our home   

[Deleted User]

cfw1994 said:

Deleted_User said:

cfw1994 said:

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

Question is more about what % is it down.  
Peak for mine was Feb 21st.   Currently down 4.8% against that, but actually up 1% from the start of Jan....

What is your asset allocation? What are you reporting? Money weighted return? Or are you reporting large contributions in January? 

Mine?  Not entirely sure I understand what you are asking, sorry: I added one small amount (< 0.3%) in Jan, but essentially I am reflecting 'the entire pot' (haven't broken down the daily differences in the funds - probably should!)
Think I have posted fuller detail a few times, but briefly, my main 'pot' (all with Aviva) consists of this:

• 20% Pre-retirement Fixed Interest
• 15% BlackRock Over 15 Year Corporate Bond Index Tracker
• 15% BlackRock Over 15 Year Gilt Index Tracker
• 25% BlackRock World ex UK Equity Index Tracker
• 25% North American

Two rising days this week now: up 2.5% since start of Jan, now down 3.5% since the peak on 21st Feb.
That help?
Don't get me wrong - I am not in ANY way claiming to be an expert in this field, certainly not an IFA/FA, & I suspect we will see more challenging times in the weeks ahead, but I remain optimistic this isn't the end of the world as we know it.  If I felt that, I'd be investing in canned food, bottled water and razorwire for our home   

Makes sense. I am down 2.5% year to date. You are up 1%. That’s because you have a balanced portfolio (50/50) and I have an aggressive one (80/20; was 90/10 in 2019).  Interesting you exclude UK from your stock allocation (I don’t). You also have much longer average duration for your bonds, which benefits you more when rates drop. 

Sailtheworld

Thrugelmir said:

vacheron said:

My DC pension is down £28K over the last 6 weeks, and that includes the £2200 I paid in this month! However, as I'm 46 and at least 11 years from retirement I'm really not bothered. Just keep buying through and (hopefully) out the other side. 

If you're a couple of years from retirement though you may have a right to be slightly more concerned.

In 11 years time you could be facing another "event".  Until "events" occur many people rarely consider their appetite for risk seriously. Or the wisdom of their investment choices. 

Pretty pointless having a portfolio built to suit the risk appetite of your future self 11 years hence.