New investor Panicking Already seeking reassurance

Thrugelmir

ChainsawCharlie said:

Thrugelmir said:

eskbanker said:

MarkCarnage said:

eskbanker said:

If you've engaged an IFA then they should be the one explaining volatility to you, and this obviously should have been done when ascertaining your short term and long term needs, and risk tolerance, ahead of choosing an investment strategy to deliver that - did they not do this?  Have you asked them about what's happening (which is indeed far from unusual)?

Having it explained and experiencing it are two different things. 

True, but OP admits to having been invested for 12 years, 

Perfect alignment with the longest bull market run in history. Was always going to end. Something that needs to be factored in when deciding whether there's enough in the pot to take early retirement. The headwinds that lie ahead have been well flagged. Though the timing was always uncertain. 

We were both forced into early retirement  but having said that had actually planned to retire 3 years later

I've known people drop out of highly stressfull well paid jobs and roles to undertake menial roles for a period of time. Always a personal choice. 

eskbanker

Thrugelmir said:

eskbanker said:

MarkCarnage said:

eskbanker said:

If you've engaged an IFA then they should be the one explaining volatility to you, and this obviously should have been done when ascertaining your short term and long term needs, and risk tolerance, ahead of choosing an investment strategy to deliver that - did they not do this?  Have you asked them about what's happening (which is indeed far from unusual)?

Having it explained and experiencing it are two different things. 

True, but OP admits to having been invested for 12 years, 

Perfect alignment with the longest bull market run in history. Was always going to end. Something that needs to be factored in when deciding whether there's enough in the pot to take early retirement. The headwinds that lie ahead have been well flagged. Though the timing was always uncertain. 

The 12 year reference was included to highlight that OP must have experienced volatility in previous dips, rather than genuinely being the 'new investor' claimed in the thread title, but yes, it has coincided with the long bull run - I did go on to suggest derisking but that was more to do with plans to draw down some funds in the short to medium term rather than taking a view about market cycles as such, so I'm not sure about needing to factor the latter in, which would essentially be trying to time the market....

Thrugelmir

eskbanker said:

Thrugelmir said:

eskbanker said:

MarkCarnage said:

eskbanker said:

If you've engaged an IFA then they should be the one explaining volatility to you, and this obviously should have been done when ascertaining your short term and long term needs, and risk tolerance, ahead of choosing an investment strategy to deliver that - did they not do this?  Have you asked them about what's happening (which is indeed far from unusual)?

Having it explained and experiencing it are two different things. 

True, but OP admits to having been invested for 12 years, 

Perfect alignment with the longest bull market run in history. Was always going to end. Something that needs to be factored in when deciding whether there's enough in the pot to take early retirement. The headwinds that lie ahead have been well flagged. Though the timing was always uncertain. 

The 12 year reference was included to highlight that OP must have experienced volatility in previous dips, rather than genuinely being the 'new investor' claimed in the thread title, but yes, it has coincided with the long bull run - I did go on to suggest derisking but that was more to do with plans to draw down some funds in the short to medium term rather than taking a view about market cycles as such, so I'm not sure about needing to factor the latter in, which would essentially be trying to time the market....

Not been a proper correction i.e. bear market in that period. A new experience for a generation. As this is the start of a different market phase. Going to come as a shock how volatile the equity markets can be. Expectations for future returns are generally unrealistic in the medium term. 

eskbanker

Thrugelmir said:

eskbanker said:

Thrugelmir said:

eskbanker said:

MarkCarnage said:

eskbanker said:

If you've engaged an IFA then they should be the one explaining volatility to you, and this obviously should have been done when ascertaining your short term and long term needs, and risk tolerance, ahead of choosing an investment strategy to deliver that - did they not do this?  Have you asked them about what's happening (which is indeed far from unusual)?

Having it explained and experiencing it are two different things. 

True, but OP admits to having been invested for 12 years, 

Perfect alignment with the longest bull market run in history. Was always going to end. Something that needs to be factored in when deciding whether there's enough in the pot to take early retirement. The headwinds that lie ahead have been well flagged. Though the timing was always uncertain. 

The 12 year reference was included to highlight that OP must have experienced volatility in previous dips, rather than genuinely being the 'new investor' claimed in the thread title, but yes, it has coincided with the long bull run - I did go on to suggest derisking but that was more to do with plans to draw down some funds in the short to medium term rather than taking a view about market cycles as such, so I'm not sure about needing to factor the latter in, which would essentially be trying to time the market....

Not been a proper correction i.e. bear market in that period. A new experience for a generation. As this is the start of a different market phase. Going to come as a shock how volatile the equity markets can be. Expectations for future returns are generally unrealistic in the medium term. 

Yes, it's undoubtedly been a bull run without significant corrections, but the point being made was that OP would have experienced similar dips to the current one (based on the reported 3.6% drop) on at least three occasions in the last four years, and so shouldn't be unduly spooked by this one.

Thrugelmir said:
A new experience for a generation. As this is the start of a different market phase. Going to come as a shock how volatile the equity markets can be. Expectations for future returns are generally unrealistic in the medium term. 

Agreed that those who've only invested during this bull run won't have experienced major negatives, and I'm sure most would agree that the future outlook is unlikely to involve another 12 positive years, but in itself that need not be a significant influence on investing strategy, in the absence of any reliable indicators as to specific timescales - time will tell if this really is the start of a new phase, but difficult to generalise about unrealistic expectations without knowing what people's expectations actually are!

eskbanker

ChainsawCharlie said:

Yes did experience a few dips on the way, over 12 years, but this time, having only been in this SIPP portfolio 10 days, what was worrying me this time was the magnitude over a relatively short spell £8000 which I have never witnessed in such a short spell of days before.

Perhaps you're swayed by the absolute figure now being higher than it was, due to portfolio growth, but a 3.6% dip over ten days really isn't freakish!

ChainsawCharlie said:

Sure during that Covid dip, it dropped, but rightly or wrongly, I switched to cash, about 1 week before (Sheer fluke) it dropped, and was lucky enough to time it right by going back into 20-60 fund just before the prices started to climb.

[...]

I didnt really feel like a true investor in the Aviva fund, but I suppose I was.

Interesting that you managed to time the market both on the way down and then up again in 2020, which would suggest a distinctly hands-on active approach to investing, but, as you say and assuming no inside info, being able to do this is generally sheer fluke, so don't kid yourself that this is a sustainable way of investing, and previous studies have apparently concluded that those who try to do this typically lose out versus those who take a buy and hold approach.

jimpwarsop

OP, have you looked at the performance of your investments over the last twenty years ?

eskbanker

ChainsawCharlie said:
I couldn't agree more, it was entirely a pure lucky fluke, I switched out then back in again at the right time just using gut instinct, but of course as you say this is not a sustainable approach, hence my reasons for now using the services of an IFA.  I really need to start enjoying retirement rather than being glued to my portfolio progress.

But with all due respect, that's a false dichotomy - there is a perfectly valid middle ground of choosing your own investments but training yourself to leave them alone rather than feeling the need to tinker with them, without any requirement to pay an IFA solely to keep your hands off them!

Prism

jimpwarsop said:

OP, have you looked at the performance of your investments over the last twenty years ?

The problem is that almost nobody knows their performance over 20 years unless they kept accurate records the entire time.

Thrugelmir

eskbanker said:

Thrugelmir said:

eskbanker said:

Thrugelmir said:

eskbanker said:

MarkCarnage said:

eskbanker said:

If you've engaged an IFA then they should be the one explaining volatility to you, and this obviously should have been done when ascertaining your short term and long term needs, and risk tolerance, ahead of choosing an investment strategy to deliver that - did they not do this?  Have you asked them about what's happening (which is indeed far from unusual)?

Having it explained and experiencing it are two different things. 

True, but OP admits to having been invested for 12 years, 

Perfect alignment with the longest bull market run in history. Was always going to end. Something that needs to be factored in when deciding whether there's enough in the pot to take early retirement. The headwinds that lie ahead have been well flagged. Though the timing was always uncertain. 

The 12 year reference was included to highlight that OP must have experienced volatility in previous dips, rather than genuinely being the 'new investor' claimed in the thread title, but yes, it has coincided with the long bull run - I did go on to suggest derisking but that was more to do with plans to draw down some funds in the short to medium term rather than taking a view about market cycles as such, so I'm not sure about needing to factor the latter in, which would essentially be trying to time the market....

Not been a proper correction i.e. bear market in that period. A new experience for a generation. As this is the start of a different market phase. Going to come as a shock how volatile the equity markets can be. Expectations for future returns are generally unrealistic in the medium term. 

Yes, it's undoubtedly been a bull run without significant corrections, but the point being made was that OP would have experienced similar dips to the current one (based on the reported 3.6% drop) on at least three occasions in the last four years, and so shouldn't be unduly spooked by this one.

Thrugelmir said:
A new experience for a generation. As this is the start of a different market phase. Going to come as a shock how volatile the equity markets can be. Expectations for future returns are generally unrealistic in the medium term. 

Agreed that those who've only invested during this bull run won't have experienced major negatives, and I'm sure most would agree that the future outlook is unlikely to involve another 12 positive years, but in itself that need not be a significant influence on investing strategy, in the absence of any reliable indicators as to specific timescales - time will tell if this really is the start of a new phase, but difficult to generalise about unrealistic expectations without knowing what people's expectations actually are!

Very different when you are in retirement and not adding new monies as you were while in employment. The dips become real money. Not just a number on the screen. That simply working for longer can rectify/bolster. 

jimpwarsop

Prism said:

jimpwarsop said:

OP, have you looked at the performance of your investments over the last twenty years ?

The problem is that almost nobody knows their performance over 20 years unless they kept accurate records the entire time.

https://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?id=VAUSA071T5&InvestmentType=SA

Seems the OPs previous vehicle has dropped 3.84 % this year.

So at -3.6% they must be up on the deal.