New investor Panicking Already seeking reassurance

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.

eskbanker

Thrugelmir said:

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. 

Yes, that was my point, i.e. that adjusting investment strategy (e.g. derisking) because of entering the decumulation phase is a better reason than doing so based on a guess about the direction of the markets!

older_and_no_wiser

ChainsawCharlie said:

 I really need to start enjoying retirement rather than being glued to my portfolio progress.

Haha. Easier said than done. After almost 30 years of not really knowing what a pension was and not understanding my annual paper statements, I got very interested in the investment options and went on a learning spree with YouTube, Google and this forum! I learnt so much but at the same time got obsessed with market performance and my portfolio. The ease of constant access via online logins and mobile apps for my funds made it harder to switch off and ignore it. After about 7-8 months with my new found knowledge, I am finally learning to not look as often now that I have rebalanced my portfolio and moved a load of very low earning savings into investments - ISAs and SIPP.

It was stressful but also fun - and I made a point of not panicking when drops occurred. Stay committed to your portfolio and leave it. Every other YouTuber (and people on here!) will have a better plan for you money, but the best plan is to just leave it where it is. With a good diverse spread of investments you will undoubtably make money over the long term. If you chop and change and/or invest in a small/narrow range of individual companies then you are a ticking time bomb to lose heavily. 

Steve182

Here are some examples of long term returns from the most established investment trusts over the past 10, 20 and 30 years. They will have had many bumps and scrapes on the way, perhaps losing half their value at times. Were one to sell in 2001 for example I would imagine half the investment may be lost. 

https://www.itinvestor.co.uk/2022/02/long-term-returns-of-the-oldest-trusts/

Handsome rewards available for diversified investors in the long term, but only for those willing to overlook short term volatility and stay the course.

I read somewhere that the most successful private investors had either died or forgotten about their investments 

Thrugelmir

Steve182 said:

I read somewhere that the most successful private investors had either died or forgotten about their investments 

Majority of people start to liquidate in later life though. A different ball game. 

Steve182

Thrugelmir said:

Steve182 said:

I read somewhere that the most successful private investors had either died or forgotten about their investments 

Majority of people start to liquidate in later life though. A different ball game. 

I think the article I read suggested that emotion hampered returns, so those who had no control over their investments (due to death or not being aware of them)  were the most successful due to non interference.

Albermarle

I read somewhere that the most successful private investors had either died or forgotten about their investments  

I think that famously came from a US manager at Fidelity some years ago . However I think there are some doubts over its veracity .

In any case there is probably some truth in it . My own tinkering has probably brought more negative than positive results .

Audaxer

Steve182 said:

I read somewhere that the most successful private investors had either died or forgotten about their investments 

I'm not sure I would consider someone a successful investor if they had forgotten about their investments and as a result hadn't enjoyed the gains made.