Why do posters here have disproportionately higher than average pension funds...

Malthusian

Deleted_User said:

Albermarle said:

Studies have shown that investors who literally forget about investments do the best. (And I am sorry I don’t remember the references but if you read books analyzing actual returns secured by investors you will have come across it)

Maybe you meant this 

A news item that has gotten a lot of attention recently concerned an internal performance review of Fidelity accounts to determine which type of investors received the best returns between 2003 and 2013. The customer account audit revealed that the best investors were either dead or inactive—the people who switched jobs and “forgot” about an old 401(k) leaving the current options in place, or the people who died and the assets were frozen while the estate handled the assets. 

My speculation on why dead people beat everyone else is that there is no temptation to employ recency bias and sell a stock simply because the price of the company went down or they assume that the recent bad economic conditions will continue perpetually into the future.

Not this particular one, but I’ve come across very similar studies. Very consistent.  Dying is the best thing you can do to maximize future returns. 

Not only do dead people not churn their portfolio, but they don't panic and cash in, they don't take income from their investments so no pound cost ravaging, and loans are generally repaid on death so a deceased's investments won't be geared.

It's a wonder we allow the living to hold investments at all.

Sailtheworld

If the vast majority of people don't beat the markets and dead people are better investors than the living why do people keep tinkering? Probably because the broker who makes £9.95 with every trade has an interest in convincing the punters they all have an edge.

Albermarle

Sailtheworld said:

If the vast majority of people don't beat the markets and dead people are better investors than the living why do people keep tinkering? Probably because the broker who makes £9.95 with every trade has an interest in convincing the punters they all have an edge.

I understand that is how many City type people get rich . Not by investing them selves  but by persuading others to churn their holdings ( or get involved in useless mergers )

TBC15

The dead miss out on the state pension, but the reduced price of accommodation probably offsets that.

Malthusian

TBC15 said:

The dead miss out on the state pension, but the reduced price of accommodation probably offsets that.

Grieving relative: You're charging how much to set my dad on fire, press play on either a) Abide With Me b) Disco Inferno c) Family's choice (£500 extra subject to PRS licence) and hand him back in a jar?

Undertaker: How much was the care home depleting your inheritance by every week?

Grieving relative: Can you play Always Look On The Bright Side Of Life? Dad always loved that song.

Prism

Sailtheworld said:

If the vast majority of people don't beat the markets and dead people are better investors than the living why do people keep tinkering? Probably because the broker who makes £9.95 with every trade has an interest in convincing the punters they all have an edge.

I'm not sure we have any UK stats on how many people do or don't beat the markets. There is no way they could know if I do or don't for example. But tinkering rarely seems to work for me at least. I would be better off leaving alone.

Thrugelmir

Albermarle said:

Sailtheworld said:

If the vast majority of people don't beat the markets and dead people are better investors than the living why do people keep tinkering? Probably because the broker who makes £9.95 with every trade has an interest in convincing the punters they all have an edge.

I understand that is how many City type people get rich . Not by investing them selves  but by persuading others to churn their holdings ( or get involved in useless mergers )

City types make recommendations to their clients to buy while offloading the same stock off their books. Remember the Big Short and the global trader at Deutsche Bank in the US who personally became extremely wealthy. 

Gadfium

TBC15 said:

The dead miss out on the state pension, but the reduced price of accommodation probably offsets that.

Ever seen the price of a cemetery plot?

TBC15

Gadfium said:

TBC15 said:

The dead miss out on the state pension, but the reduced price of accommodation probably offsets that.

Ever seen the price of a cemetery plot?

It is a one off purchase, unless you are planning on moving after a few years.

Nickolai

This is no different to a Watch forum I go on. 

I have a range of watches but nothing costing above four figures (the majority are nowhere near the £1000 mark) but there are guys on there who own, Rolex’s, Patek’s, Tudor’s, Omega’s and high end watches worth many times the value of my car. 

Much like I’m never going to have a £1m pension pot, I’m probably never going to own one of those watches (If I sold my collection I could afford one or maybe two pre owned) but it doesn’t stop me posting on the daily thread a photo of me wearing a £100 Vostok and in the next photo someone is wearing their top of the range Rolex.