Switching Funds and Choices

Thrugelmir

Donpatch_2 said:

  Total gross contributions have been £50k and it is now worth £75K. So I think this seems like a very cautious choice by the advisor given the age I was at the time.

I believe I have quite a high risk tolerance.

Now you are contributing £437 pm (and rising) compounding will start to kick in. As you get older it's noticiable how much quicker the pot starts to grow.  The amount you contribute is the real key to eventual portfolio size. . 

Easy to say you have a higher risk tolerance. Few people actually do when markets become volatile, and the value of your  portfolio swings a five figure sum on a frequent basis.

[Deleted User]

For someone in early 40s, a major drop is great news regardless of emotions. Lots of time to recover. Meanwhile you are buying equity at a discount. Just write down you investment policy and stick with it. If you need to revise your policy, do it after recovery.

Albermarle

Deleted_User said:

For someone in early 40s, a major drop is great news regardless of emotions. Lots of time to recover. Meanwhile you are buying equity at a discount. Just write down you investment policy and stick with it. If you need to revise your policy, do it after recovery.

The problem is that many people just can not see it in those/your terms and panic and pull out when there is a big market drop.
So if this is a possibility the probably better for them in the long term to stick to less risky investments.

[Deleted User]

I think it used to be like you describe  but not at all sure many behave like that any more. Simple trackers / lifestyle funds, pensions/401k encourage better behaviour. There will be some who panic but a lot of the selling in times of crisis seems to be algorithm driven. 

Thrugelmir

Deleted_User said:

I think it used to be like you describe  but not at all sure many behave like that any more. Simple trackers / lifestyle funds, pensions/401k encourage better behaviour. There will be some who panic but a lot of the selling in times of crisis seems to be algorithm driven. 

Those immortal words. This Time Is Diffferent............ it never is.