Pension pot loss

Brenster

Its a brave decision, but many would say now is the perfect time to top up your pension, as you are buying units at a cheaper rate.  The logic makes sense, but i cant help feeling that keeping my money in the bank is an attractive option, but inflation increases will eat away at the spending power, its all a calculated gamble based on individual circumstances to be honest !

Thrugelmir

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

Markneath

SouthCoastBoy said:

There is no guarantee it will come back, and if it does it could take a number of years, for example ftse 100 closed at just under 7000 in 1999 and that closing  high wasn't surpassed until around 2015

Surely with monthly payments paid in at the low points during the early 2000’s along with maybe 3% dividends per annum them most FTSE funds would have been positive again a long time before 2015, even allowing for the capital paid in during this period?

Any money paid in from about 2003 would have seen big gains by about 2007 or am I wrong?

dunstonh

Markneath said:

SouthCoastBoy said:

There is no guarantee it will come back, and if it does it could take a number of years, for example ftse 100 closed at just under 7000 in 1999 and that closing  high wasn't surpassed until around 2015

Surely with monthly payments paid in at the low points during the early 2000’s along with maybe 3% dividends per annum them most FTSE funds would have been positive again a long time before 2015, even allowing for the capital paid in during this period?

Any money paid in from about 2003 would have seen big gains by about 2007 or am I wrong?

Dividend yields were higher back then. The FTSE100 has been a yielding index for many many decades.  So, you need to include yield otherwise the reference to the change in the level of the FTSE over the last 20 years is unfair.

SouthCoastBoy

To be truly reflective inflation should also be factored in

grumiofoundation

Thrugelmir said:

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

The poster did say cheaper not cheap.

Thrugelmir

grumiofoundation said:

Thrugelmir said:

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

The poster did say cheaper not cheap.

Cheaper is still a relative term. Semantics aren't a particularly usefull skill for investors. 

GibbsRule_No3.

For the past five months all the monthly payments I have paid in have actually lost more than has been paid in.  I am supposed to be in a less risk investment due to age, really should be retired by now.  So wondered what would have happened if those five months were the only payments I had paid in, would my pension be showing a minus figure, where I’d owe them?  I don’t think I need to take any money yet and kind of hope it will start to rise again before I do.  Just seemed odd that five months of payments could show a minus + figure.

coyrls

If you add five contributions to a large pot and your pot goes down by 10% then it is possible that 10% would be greater than your five contributions.  If you add five contributions to an empty pot and your pot goes down by 10%, then the reduction would be the same as 10% of your five contributions.

Thrugelmir

GibbsRule_No3. said:

  Just seemed odd that five months of payments could show a minus + figure.

Markets track the underlying financial performance of the companies or investments contained within them. When there's global turmoil.  There's few places to hide. Choice of investment fund is key though. Different markets will react in different ways.