Will recent "events" cause a rethink of DC pensions?

Cobbler_tone

MeteredOut said:

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

Is anyone who invests in a global fund (even indirectly through their employer pension in the default fund) not invested in a globally inter-connected market?

Should we really expect them to have an understanding of macro economics and geopolitics?

I was going to point out that the majority of people don't even know how to log into their workplace pension, let alone choose a portfolio and understand macro economics. 
The flip side is that they won't even know whether their pension has dropped or not, which is probably for the best.

westv

Cobbler_tone said:

MeteredOut said:

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

Is anyone who invests in a global fund (even indirectly through their employer pension in the default fund) not invested in a globally inter-connected market?

Should we really expect them to have an understanding of macro economics and geopolitics?

I was going to point out that the majority of people don't even know how to log into their workplace pension, let alone choose a portfolio and understand macro economics. 
The flip side is that they won't even know whether their pension has dropped or not, which is probably for the best.

The news tells them that it's craaaaaashed or pluuuunged! 😂

bonnyrigger

Just decided to hang fire on handing in that notice for a while. Main RL pension is down 7.2% from peak, although still up 1.8% from May last year.
Each month I work is extra DB pension and AVC to insulate against more "Orange Swan" events.

Hoenir

Cobbler_tone said:

MeteredOut said:

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

Is anyone who invests in a global fund (even indirectly through their employer pension in the default fund) not invested in a globally inter-connected market?

Should we really expect them to have an understanding of macro economics and geopolitics?

I was going to point out that the majority of people don't even know how to log into their workplace pension, let alone choose a portfolio and understand macro economics. 
The flip side is that they won't even know whether their pension has dropped or not, which is probably for the best.

There's a huge number of people who like to manage their own investments these days. Hardly surprising when it all can be done at a click and an extended bull market where making money couldn't have been easier. Complancencey ultimately creeps in. 

Cobbler_tone

Hoenir said:

Cobbler_tone said:

MeteredOut said:

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

Is anyone who invests in a global fund (even indirectly through their employer pension in the default fund) not invested in a globally inter-connected market?

Should we really expect them to have an understanding of macro economics and geopolitics?

I was going to point out that the majority of people don't even know how to log into their workplace pension, let alone choose a portfolio and understand macro economics. 
The flip side is that they won't even know whether their pension has dropped or not, which is probably for the best.

There's a huge number of people who like to manage their own investments these days. Hardly surprising when it all can be done at a click and an extended bull market where making money couldn't have been easier. Complancencey ultimately creeps in. 

I was just alluding to personal experience, which I wouldn't assume was that unique. I work for a large corporate and regularly spend time with people who have never accessed either their DB or DC portals. Just yesterday I was helping someone who is 60 years old with 30 years service who thought they better find out as they retire in 7 years. 
I didn't get into if they actually want to retire at state pension age because I have little doubt they could afford to retire now.
I'm 100% sure that the majority don't know there are other investment choices available in our only remaining (DC) scheme, other than the target date fund they are plonked in.
Events like this may raise awareness. 

Yet I do know some of them buy/sell crypto and gold. We are all different.

kinger101

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

Having an understanding is one thing.  That understanding being sufficiently correct or useful enough to come up a way of making a decision that positively impacted my pension is another.  The fact that actively managed funds on average underperform global trackers tells me that most people how proclaim to be good at that stuff aren't.  

I don't know which direction the next brown stuff is coming from or when.  I just know that it does from time to time it will connect with the rotating blades.  

Roger175

I've been quietly buying all week, a bit here a bit there, but hopefully picked up a few bargains.

I've now chewed through most of my 'fun' money and will need to sell some of my short term money market fund to replenish the spending pot. 

Incidentally has everyone noticed how the yield on STMM's has suddenly gone flat in the last day or two.  

SVaz

My small STMM ( acc)  is showing a £68 loss or -2.98% .
My larger inc one is +. 10% .    

MeteredOut

SVaz said:

My small STMM ( acc)  is showing a £68 loss or -2.98% .
My larger inc one is +. 10% .    

That doesn't really tell us anything unless you share the timeframes.

Hoenir

kinger101 said:

Storcko14 said:

kinger101 said:

As annoying as it is to see a five figure sum wiped off my DC fund, I don't see anything has fundamentally changed that what cause me to alter strategy.

It's not even a crash.  Yet.  But if I had to alter my plan in response, than my original plan would have been wrong.  Which it may have been, but finding a better direction is difficult in a fog.

I think this is why an understanding of macro economics and geopolitics (and allowing discussion of on fora such as this) is essential if you're investing in a globally inter-connected market.

The fact that actively managed funds on average underperform global trackers tells me that most people how proclaim to be good at that stuff aren't.  

Global trackers haven't outperpeformed per se.  A handfull of shares have. Being underweight in these shares can only result in one thing. No one mentions the Nikkei crash either. Japan was a 40% index weighting back.  The US just 30%.  Investing with hindsight is easy.