Dwindling Pension Fund (as with everyone) Do i carry on contributing?

Leigh-Anne_60

sheslookinhot said:

you’re spending too much time analysing things

Not really - Try and keep a monthly/bi monthly tab on movements, whether going up or down.  More just to make sure im happy with the fund spread.
Scottish widows, is a bit more difficult as i see everytime i log in on Halifax online banking 

Leigh-Anne_60

Many thanks or all your contributions.  Helped me to decide to carry on with the monthly £1500 

dunstonh

Leigh-Anne_60 said:

sheslookinhot said:

you’re spending too much time analysing things

Not really - Try and keep a monthly/bi monthly tab on movements, whether going up or down.  More just to make sure im happy with the fund spread.
Scottish widows, is a bit more difficult as i see everytime i log in on Halifax online banking 

It was so much better in the old days when you got statements once a year.   And most didn't pay them much attention either.  

I had someone tell me, during the 2020 fall (that was bigger than this fall) that they had never had a drop in their investments before and couldn't understand why it had gone down, which is why they wanted me to help.  I found this strange as he had been invested since 2000 and had gone through two larger drops and a couple of crashes as well as some corrections.         It turned out, that what he should have said is that "he had never seen a drop..."   Many of those negative periods dropped and recovered between the statement dates or his regular contributions in were sufficient to cover any negative.      

If you don't look, you don't see it.  If you don't see it,  you don't worry about it.  The best thing you can do in a negative period is close your eyes to your investments.

joep2

I was in a similar position, but I am taking a different approach to dodge the falling knives. Markets don't bottom out until central banks start considering rate cuts and with inflation at such high levels, that is not happening this year. 

I understand time in market beats timing the market, but the macro sitution we have is hopeless. I reduced my contribution with the aim to ramp it up early next year before the end of tax year, hopefully grab deeper discounts. 

Bravepants

joep2 said:

I was in a similar position, but I am taking a different approach to dodge the falling knives. Markets don't bottom out until central banks start considering rate cuts and with inflation at such high levels, that is not happening this year. 

I understand time in market beats timing the market, but the macro sitution we have is hopeless. I reduced my contribution with the aim to ramp it up early next year before the end of tax year, hopefully grab deeper discounts. 

If you're invested in funds, it's more like a cutlery drawer that will eventually be picked up by the kitchen workers. 

Grumpy_chap

It is quite hard at the moment to see overall investment fall by 20% in 6 months and everyone is aware because it is such a massive and visible global event (war) that has caused such turmoil.  To keep sight that what is contributed now is "buying cheap" and the rebound should then be stronger.

bostonerimus

joep2 said:

I was in a similar position, but I am taking a different approach to dodge the falling knives. Markets don't bottom out until central banks start considering rate cuts and with inflation at such high levels, that is not happening this year. 

I understand time in market beats timing the market, but the macro sitution we have is hopeless. I reduced my contribution with the aim to ramp it up early next year before the end of tax year, hopefully grab deeper discounts. 

Whenever someone mentions "central banks" in a long term personal investment strategy I just turn off. Get your allocation right and invest as much as you can. You'd be better served by doing a budget and seeing where you can save than trying to integrate monetary policy into your personal finances.

doris540

And all those in the public sector continue to sit totally unaffected whilst we see our pots plummet quicker than Norwich out the Premiership

dunstonh

It is quite hard at the moment to see overall investment fall by 20% in 6 months and everyone is aware because it is such a massive and visible global event (war) that has caused such turmoil. 

Actually, the market drop that occurred at the start of the war recovered.  It since fell again but that is due to the cost of living squeeze, inflation and interest rates.   China's coronavirus failures and going back into extreme lockdowns didnt help.   The Russian invasion has just piled on pressure in indirect ways.

QrizB

doris540 said:

And all those in the public sector continue to sit totally unaffected whilst we see our pots plummet quicker than Norwich out the Premiership

Swings and roundabouts.

In 2021, VLS80 (as a passive-fund example from this list) rose 14.4%. I don't recall anyone saying "oh those poor public sector workers with their CPI-linked DB pensions".

And VLS80 is still up 28.5% over the past 5 years.