Pensions worry

QrizB

Rattusnorvegicus said:

Money isnt money until you actually draw on it... its just numbers on a screen dictating the value as of today.

It can be misleading because people always expect the market to go up, they never really consider what happens if the market goes down. Especially after an 11 year bull run.

It's a bit like those people who've invested in fine art or classic cars or vintage wine or whatnot.

"I've got a Duisenberg that's worth £1M" - which might be true, but you only know for sure when you come to sell it.

[Deleted User]

QrizB said:

Rattusnorvegicus said:

Money isnt money until you actually draw on it... its just numbers on a screen dictating the value as of today.

It can be misleading because people always expect the market to go up, they never really consider what happens if the market goes down. Especially after an 11 year bull run.

It's a bit like those people who've invested in fine art or classic cars or vintage wine or whatnot.

"I've got a Duisenberg that's worth £1M" - which might be true, but you only know for sure when you come to sell it.

The difference is liquidity. With illiquid assets like a house or a piece of art, you have a rough idea of the value but you could be way off.  With liquid assets like stocks and bonds, you know what you have at any moment in time within a percent or two. There are some exceptions to this rule but the market value is real whether you realize it now or in the future. Waiting does mean positive expected return, yet Mr Market tells you what you have today rather accurately. 

Worriedpensioner22

Yes £28000 approx still do not understand the question “why are you with Embark?)