Pension pot movement

michaels

matth1j said:

I transferred my 3 workplace pots from previous employers to a 'wealth management' company last November, choosing a 'medium risk' plan. What was approx £460k is now hovering around £400k. Correction - just checked, today it's down to £395k (it has been lower). Lol.

Yes, I know I'm lucky to have that amount of money sitting somewhere, and I do have 10 years until my official retirement date. Still a bit worrying though.

No need to worry, the wealth management company will still be doing very nicely thank you despite your pot being 15% smaller.... 

jim8888

Thrugelmir said:

jim8888 said:

Thrugelmir said:

garyelder said:

spoke to my financial adviser says it’s interesting times

Time to buckle up for the ride that lies ahead in my personal opinion. All those years of making easy money are drawing to a close.  

Yes, most of us lived through the dot com crash, the 9/11 crash, the financial meltdown of 2008 and the recent collapse during Covid. No doubt there will be others coming, can't deny that, but you also can't deny that usually the market recovers. 

Ultimately depends what your personal time horizon is. Once upon a time the Nikkei was the place to be invested. 

Investing in a Baillie Gifford Japan Fund five years ago was the final nail in the coffin for me in terms of trying to pick "countries that might do well soon". Five years later and this fund was nowhere compared to a global tracker over the same period. Probably could say the same about the UK over the last five years too, so it's global funds for me from now on. 

Thrugelmir

DT2001 said:

Thrugelmir said:

jim8888 said:

Thrugelmir said:

garyelder said:

spoke to my financial adviser says it’s interesting times

Time to buckle up for the ride that lies ahead in my personal opinion. All those years of making easy money are drawing to a close.  

Yes, most of us lived through the dot com crash, the 9/11 crash, the financial meltdown of 2008 and the recent collapse during Covid. No doubt there will be others coming, can't deny that, but you also can't deny that usually the market recovers. 

Ultimately depends what your personal time horizon is. Once upon a time the Nikkei was the place to be invested. 

May I ask if you are invested in the stock markets at the moment and if so what sort of funds?
I am unsure if you are realistic or pessimistic?

Yes I am invested. Though progressively holding more cash. Bulk of my collective investments are weighted towards renewable energy, infrastructure, emerging markets and private equity. Individual shares predominantly weighted towards dirty oil and gas, energy producers and UK financials. 

At the macro level most definately erring on the side of caution. I assume you've heard of Investment Herd Mentality?  

DT2001

Thrugelmir said:

DT2001 said:

Thrugelmir said:

jim8888 said:

Thrugelmir said:

garyelder said:

spoke to my financial adviser says it’s interesting times

Time to buckle up for the ride that lies ahead in my personal opinion. All those years of making easy money are drawing to a close.  

Yes, most of us lived through the dot com crash, the 9/11 crash, the financial meltdown of 2008 and the recent collapse during Covid. No doubt there will be others coming, can't deny that, but you also can't deny that usually the market recovers. 

Ultimately depends what your personal time horizon is. Once upon a time the Nikkei was the place to be invested. 

May I ask if you are invested in the stock markets at the moment and if so what sort of funds?
I am unsure if you are realistic or pessimistic?

Yes I am invested. Though progressively holding more cash. Bulk of my collective investments are weighted towards renewable energy, infrastructure, emerging markets and private equity. Individual shares predominantly weighted towards dirty oil and gas, energy producers and UK financials. 

At the macro level most definately erring on the side of caution. I assume you've heard of Investment Herd Mentality?  

Yes, I have heard of Herd Mentality. I believe in being invested (if possible) long term rather than trying to guess the direction of the market. I have a small DB pension, a willingness to be flexible in spending and a Plan B so am happy to try and weather the storm.

Kim1965

Im not quite sure how but my pension fund does not seem to have dropped at all over the last 6 months. Ok im accumulating, but its up anyway. The value goes up and down daily, but the background trend has no loss in the period your discussing. 

As a very un savvy investor (my brother looks after my pension) i dont really understand these 10%drops i hear about. Those thatare down, is it because they were in to the s&p and hold lots of tech stocks,? im probably showing my ignorance!
 So Bro tells me im defensive at the moment but will increase my equities in mid summer. I just nod.
 What literature is available for those wanting to learn? 

Albermarle

Starters for 10 . Often your pension providers website will have useful info as well. 

Investing in stocks for beginners: how to get started - MSE (moneysavingexpert.com)


PensionCraft - YouTube

gh67

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension. When I checked my Quilter formally old mutual pension tonight it’s down 6.5% on this time last year but down about 8% since January, I’ve no idea if this is normal but I believe pensions have been hit hard recently. 

Thrugelmir

gh67 said:

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension. When I checked my Quilter formally old mutual pension tonight it’s down 6.5% on this time last year but down about 8% since January, I’ve no idea if this is normal but I believe pensions have been hit hard recently. 

Investments fluctuate in value. These are challenging times for a number of reasons. No one would be surprised by a period of muted returns. Given the returns generated over the past decade. Stock markets ultimately have to reflect economic reality. There has been a detachment and increasing air of speculation. As money has flooded in. 

dunstonh

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension

That probably isn't the best way to do it.  You will be wasting your personal allowance.   You may wish to revisit your drawdown strategy (covering savings/pensions and any other wrappers).

MallyGirl

As Dunstonh says, if you will have no income between 55 and 60, it might be better to drawdown £12k ish to use your 0% tax band - even if you just reinvest in exactly the same thing in an ISA to protect it from future tax. With the 25% tax free element that actually means you could take £16k ish out each year and pay no tax. This avoids you paying tax on this 5x12k = £60k further down the line - a saving of £12k is not to be sniffed at.
This does all depend on the value of the pension, your plans for withdrawal, what SP you have built up etc.