Bonds

ChainsawCharlie

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JohnnyB70

What are your concerns?

ChainsawCharlie

Its just I keep reading about how bonds are going to under perform  and concerned I will seriously lose my pension pot  or do bonds eventually recover?

JohnnyB70 said:

What are your concerns?

Thrugelmir

Where's the remainder of the money invested? 

ChainsawCharlie

Thrugelmir said:

Where's the remainder of the money invested? 

Hi,

Hope this list makes sense,

These are the funds which are not solely bonds, but some of the mixed equity will have bond/cash allocations of course

Vanguard FTSE 250 UCITS ETF (My choice)

Baillie Gifford International B Acc

 Baillie Gifford Pacific B Acc

 HSBC Japan Index C Acc

HSBC Pacific Index Accumulation C

 

IFSL Marlborough Special Sits P Acc

 

iShares Pacific ex Jpn Eq Idx (UK) D Acc

 

JPM Emerging Markets C Net Acc

 

L&G US Index I Acc

 

Liontrust MA Passive Interm S Acc

 

Royal London Sustainable Div C Acc

 

Royal London Sustainable Leaders C Acc

 

Scottish Mortgage Ord

 

Vanguard FTSE Dev Wld ex-UK Eq Idx £ Acc

 

Vanguard LifeStrategy 60% Equity A Acc

Thrugelmir

That's a lot of funds for a £107k portfolio. Why so many? 

ChainsawCharlie

Thrugelmir said:

That's a lot of funds for a £107k portfolio. Why so many? 

I agree, that's what happens when you trust a Chartered IFA!

tebbins

If your ex-IFA is under investigation, you may want to consider a new IFA.
As for bonds, search "PensionCraft bonds" on YouTube, he's done quite a few excellent videos going into academic detail about all things bonds.
I see nothing wrong with having some allocation to bonds in your portfolio, however as to what weighting, which bonds and via which funds - that's getting into personal advice territory. Only your IFA knows what 5/10 on their risk rating system means and none of us know anything about the rest of your circumstances, why you sought advice in the first place or what your original goals for this money were.

ChainsawCharlie

tebbins said:

If your ex-IFA is under investigation, you may want to consider a new IFA.
As for bonds, search "PensionCraft bonds" on YouTube, he's done quite a few excellent videos going into academic detail about all things bonds.
I see nothing wrong with having some allocation to bonds in your portfolio, however as to what weighting, which bonds and via which funds - that's getting into personal advice territory. Only your IFA knows what 5/10 on their risk rating system means and none of us know anything about the rest of your circumstances, why you sought advice in the first place or what your original goals for this money were.

Thankyou,  for the youtube linksI appreciate your reply  and fully understand  what you are talking of, I realise everyone's circumstances are different.
Unfortunately I have totally lost faith in IFA's now  if a chartered one cant get things right..etc...
My remit to the IFA was very straight forward.
1)Average risk
2) Max tax threshold drawdowns for next 4 years out of the pot ( which was £160,000 before I rescued our drawdown money and put it into cash  the rest was losses.
3) leave money alone after that to stay invested as backup for use in 10 years +time.technically wouldn't actually need it as such.
We will have DB pension kicking in soon and wife and I will get full state pension each.

So quite straight forward really.

tebbins

1. There is no agreed definition of average when if comes to investment risk.
2. What do you mean by rescued drawdown money and put it into cash? Are you saying that your entire SIPP is now cash? Is this all a single SIPP that cost £107k and was £160k before the recent dip this year, or before another dip (i.e. before March 2020?). Almost all investors will have suffered both dips. That's the risk of investing. Do you believe your portfolio was in some way unsuitable? Does this SIPP represent your entire portfolio, are there PEPs/ISAs/savings accounts and is your mortgage paid off?
As you have DB pensions and full state pensions, conventional wisdom is you can afford to take more risk than someone relying entirely on a DC pension to retire on - you have the security of guaranteed cashflows from (probably somewhat inflation linked) life annuities.
3. This forum cannot replace the breadth and depth of service an IFA can offer, as you can tell from all the questions I keep stumbling into.

As this was money that you didn't expect to 'need' that is another reason to opt for a conventionally riskier/higher equity % portfolio.

I covered in another recent post (https://forums.moneysavingexpert.com/discussion/comment/79173851/#Comment_79173851) that conventionally lower risk portfolios, i.e. those with higher bond allocations have done worse so far this year than higher equity % portfolios, conventionally considered higher risk, partly because this particular dip has also been about inflation fears. In a majority of dips, bonds tend to behave differently to stocks, that is not always the case which is why it's sensible to have both.

ChainsawCharlie

tebbins said:

1. There is no agreed definition of average when if comes to investment risk.
2. What do you mean by rescued drawdown money and put it into cash? Are you saying that your entire SIPP is now cash? Is this all a single SIPP that cost £107k and was £160k before the recent dip this year, or before another dip (i.e. before March 2020?)

Yes I rescued approx £50,000 from further losses which would be crystallised and put into cash as £17000 of that would be required 3 months after investing.the remaining £33,000 to be taken over next 2 years

So effectively £50,000 as above was put into cash, the rest remains invested in the portfolio detailed  earlier
The losses on the portfolio have been clocking up since January 5% down this year  due to general market conditions.