Embarrassed 40 year old - no pension.

sho_me_da_money

Ladies and Gents - Thank you very much. I cannot thank you all enough for your support here. You are literally shaping my life and future.

MaxiRobriguez

Alexland said:

kuratowski said:

Yes: your L&G MT global developed equity index fund is a global tracker.  The terms "world" and "global" are often used to mean developed markets only (e.g. MSCI World Index) and often small cap is excluded so that's why people have been suggesting various combinations of different trackers.

I tend to see 'Global Tracker' used as a broad term that could cover Developed, All-World, Global All Cap, etc indexes whereas 'World' usually seems to be used to mean Developed only.

kuratowski said:

As I mentioned earlier a global tracker will have only a small UK allocation, if you want to increase this, going overweight, then going world ex UK with a separate UK tracker is the answer.

Maybe a FTSE250 tracker but I wouldn't touch the FTSE100 or All Share with a barge pole. I accept there is some All Share type exposure within my global trackers as a necessary evil but looking down the list of companies I see high street banks, oil and tobacco. While they may provide some diversification they are wasting assets in mostly irreversible decline. Even some well regarded UK investment trusts have been using high weighting to oil and tobacco to support their income so you need to look carefully under the hood.

I'm not convinced tobacco is in decline. Maybe in Western markets but it is still prevalent in the likes of China, Thailand, Indonesia etc which have much larger, and growing populations, compared to Europe and the US. I don't have any direct exposure to tobacco stocks but I've certainly considered it recently with 7%+ yields from cash-generative businesses. 

Don't think high-street banks are a bad short term play either to protect somewhat against inflation risk - if BoE raises rates and the banks spread increases. 

I have a sneaking suspicion that the FTSE100 will beat most other indexes in the next five years, and that's not because I like the components, but because of relative valuations. 

Wouldn't touch oil with a bargepole though.

kuratowski

Quite, and the same reason why all my ex-employer pensions were transferred out into a SIPP, where I have a lot more choice where they are invested.  Only the active employer pension is subject to the ridiculously limited choice, but fortunately it'll take a few years before it matters.

Edit: I appear to have time travelled and responded to Alexland's post in advance

Alexland

kuratowski said:

Good points; within employer pension schemes, often you have to compromise.

Yes that's why we partially transferred lump sums between our workplace pension and SIPPs for more choice and lower costs. Although our employer eventually improved the scheme so don't bother anymore as the fund choices are now good enough for a proportion of the portfolio.

MaxiRobriguez said:

I have a sneaking suspicion that the FTSE100 will beat most other indexes in the next five years, and that's not because I like the components, but because of relative valuations.

I agree it seems possible but my view not helped by the presence of certain companies. I am more on the fence with miners as while their ESG credientials are also quite poor the world seems likely to keep needing their activities to make electric cars, etc unless we can get our recycling rate really high.

kuratowski said:

Edit: I appear to have time travelled and responded to Alexland's post in advance

Sorry I reposted it to also reply to Maxi.

Albermarle

sho_me_da_money said:

Ladies and Gents - Thank you very much. I cannot thank you all enough for your support here. You are literally shaping my life and future.

Final comment - Don't be tempted to keep fiddling with your new portfolio. Leave it alone for a couple of years at least !

barnstar2077

MaxiRobriguez said:

Alexland said:

kuratowski said:

Yes: your L&G MT global developed equity index fund is a global tracker.  The terms "world" and "global" are often used to mean developed markets only (e.g. MSCI World Index) and often small cap is excluded so that's why people have been suggesting various combinations of different trackers.

I tend to see 'Global Tracker' used as a broad term that could cover Developed, All-World, Global All Cap, etc indexes whereas 'World' usually seems to be used to mean Developed only.

kuratowski said:

As I mentioned earlier a global tracker will have only a small UK allocation, if you want to increase this, going overweight, then going world ex UK with a separate UK tracker is the answer.

Maybe a FTSE250 tracker but I wouldn't touch the FTSE100 or All Share with a barge pole. I accept there is some All Share type exposure within my global trackers as a necessary evil but looking down the list of companies I see high street banks, oil and tobacco. While they may provide some diversification they are wasting assets in mostly irreversible decline. Even some well regarded UK investment trusts have been using high weighting to oil and tobacco to support their income so you need to look carefully under the hood.

I'm not convinced tobacco is in decline. Maybe in Western markets but it is still prevalent in the likes of China, Thailand, Indonesia etc which have much larger, and growing populations, compared to Europe and the US. I don't have any direct exposure to tobacco stocks but I've certainly considered it recently with 7%+ yields from cash-generative businesses. 

Don't think high-street banks are a bad short term play either to protect somewhat against inflation risk - if BoE raises rates and the banks spread increases. 

I have a sneaking suspicion that the FTSE100 will beat most other indexes in the next five years, and that's not because I like the components, but because of relative valuations. 

Wouldn't touch oil with a bargepole though.

Big tobacco is doing better than ever:

https://www.youtube.com/watch?v=riIQ4KtKGtU

As their profits are reduced in one country, they move into another.

Alexland

barnstar2077 said:

Big tobacco is doing better than ever:
As their profits are reduced in one country, they move into another.

Sounds like a really sustainable business strategy so tell me where to signup. I remember being age 9 with my dad having his first heart attack caused by smoking. It was very distressing and hard to process at that age. My focus for the next few years will be finding cost efficient and well diversified ways to increase the proportion of our investments with ESG filters. The market seems to be providing lots of new options. If more people do similar then it should leave some bargains for Maxi to pickup.

rjbear

Thanks for the tips within this thread, they've helped me too with reviewing my own finances/pension

sho_me_da_money

rjbear said:

Thanks for the tips within this thread, they've helped me too with reviewing my own finances/pension

I must admit, this is one of the best and most informative threads I have started. It has really provided me with the knowledge I lacked about pensions and allowed me to at least start shaping up my future a few days after my 40th. Thank God I didn't say 50th or worse yet, 60th.

I feel much better at the moment.

FYI, I decided to move my AVIVA funds over to L&G, which will just add to the balance and be auto-split across my new 70/20/10. The other pension (£6,000), I feel like risking it for a biscuit and going hard with something super risky. That said, it might just be sensible to add it to the overall 70/20/10 pot.

Thank you PSE's (Pension Saving Experts)

MaxiRobriguez

Alexland said:

barnstar2077 said:

Big tobacco is doing better than ever:
As their profits are reduced in one country, they move into another.

Sounds like a really sustainable business strategy so tell me where to signup. I remember being age 9 with my dad having his first heart attack caused by smoking. It was very distressing and hard to process at that age. My focus for the next few years will be finding cost efficient and well diversified ways to increase the proportion of our investments with ESG filters. The market seems to be providing lots of new options. If more people do similar then it should leave some bargains for Maxi to pickup.

As a paid up member of the PC Marxist left-wing unwashed brigade, who just happens to like investing, I'll probably steer clear of the cig companies even if I think from a purely numbers POV they represent an interest investment case.

Sorry to hear your experiences with your dad, and I do hope the ESG funds/stocks do well - the world does need it to happen.