📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Value of pension is freaking me out

Options
1356717

Comments

  • Audaxer
    Audaxer Posts: 3,547 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    NannaH said:
    Our smallest pension pot,  created in September with a £40k lump sum and intended to be used in 5 years time to fund an early retirement gap of approx 5 years @ £11k a year , consists of BG Global Alpha growth (30% of portfolio)  - down 6.65% and 
    BG balanced managed (70% of portfolio) down 7.8%.    So the ‘safer’ , balanced 60/40 fund has lost more than the 90% equity fund 🙄

    BG Managed Fund has 75% equities so higher risk than a balanced 60/40 fund like for example, Vanguard LifeStrategy 60.  It should do better in the long term, but less certain it will over just 5 years.
  • If you're invested in good quality, profitable, ideally growing companies that are not in a bubble, then you have nothing to worry about. 
    Do you have any examples, as most of the "quality" shares tend to be on lumpy valuations at present?
    Right now, I think Facebook is relatively cheap; Microsoft and Apple don't appear to be in a bubble.
  • GSP
    GSP Posts: 894 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    Interesting reading comments on how investments have dropped over the past month or so.
    Ballpark but wondered how much roughly what % people think the low, medium and high risk have fallen, just to see how each is out on their own.
  • GSP said:
    Interesting reading comments on how investments have dropped over the past month or so.
    Ballpark but wondered how much roughly what % people think the low, medium and high risk have fallen, just to see how each is out on their own.
    Under 2%

    Of course, there are some that juggle chainsaws for breakfast and are down more, but if you look at the falls that even a 60/40 portfolio has historically suffered, you have to wonder if they fully appreciate the risks.
  • If you're invested in good quality, profitable, ideally growing companies that are not in a bubble, then you have nothing to worry about. 
    Do you have any examples, as most of the "quality" shares tend to be on lumpy valuations at present?
    Right now, I think Facebook is relatively cheap; Microsoft and Apple don't appear to be in a bubble.
    What PE ratios are you seeing for them?
  • Sunnylifeover50plan
    Sunnylifeover50plan Posts: 184 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    edited 17 January 2022 at 10:20AM
    Might there also be some degradation in value for some of the funds due to gbpusd rate over the last month or so? In fairness that's not going to make much of a difference. My LS40 and LS60 funds have eased in value with the LS40 fairing a little worse but nothing to keep up at night for as it's less than 1%. I bought about c.£25k individual UK shares back in Sep/ October; GSK, RR, L&G, BAE, BP, Close Bros., collectively they have mostly moved in the opposite direction, despite mostly being bought for dividends, in the same period but then LS funds I have aren't really weighted to UK and the bond side likely acting as a drag.

    Cornerstone to my investment strategy is the LS funds given I don't need to do anything except periodically look at their value.
  • Audaxer
    Audaxer Posts: 3,547 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    VLS60 was down 1.46%, and HSBC Global Strategy Balanced was down 2.10% Year to Date, when I checked at the weekend. I therefore don't think that there is much to be concerned about at this time if you have a medium risk portfolio.  
  • GSP
    GSP Posts: 894 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    GSP said:
    Interesting reading comments on how investments have dropped over the past month or so.
    Ballpark but wondered how much roughly what % people think the low, medium and high risk have fallen, just to see how each is out on their own.
    Under 2%

    Of course, there are some that juggle chainsaws for breakfast and are down more, but if you look at the falls that even a 60/40 portfolio has historically suffered, you have to wonder if they fully appreciate the risks.
    Thanks BI. I was thinking something like:
    Overall Total - ?%.
    Of which:
    Low Risk - ?%.
    Medium Risk - ?%.
    High Risk - ?%.
  • I guess that depends on how you quantify risk. My 100% equity portfolio, which could reasonably be considered "high risk" is down 2.6% YTD. All 100% equity portfolios are not equal though and mine isn't over-weighted with unprofitable tech companies.

    Good video, at least for noobs like me, here...

    The Great Stock Rotation - YouTube
  • Brenster
    Brenster Posts: 257 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Interesting thread...
    My pension increased by 10.5% between Jan 21 and Dec 21.  But the pot decreased by 2.5% between Dec 21 and Jan 22 (to date).
    As other said, just a fluctuation, and best no checking too regular as it causes unnecessary worry.  I have logged the value at Dec 21, and will log it again in 6 months, this hopefully will give me an insight into performance and overcome any short term fluctuations. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.