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  • FIRST POST
    • jubilee14
    • By jubilee14 30th Oct 18, 2:19 PM
    • 298Posts
    • 878Thanks
    jubilee14
    Pension values dropped?
    • #1
    • 30th Oct 18, 2:19 PM
    Pension values dropped? 30th Oct 18 at 2:19 PM
    I know that the pensions pots go up and down throughout their lives. but checking on line my pots seem to have dropped quite a bit in the last few months. Is this because of Brexit or another reasons?

    Still have about 20 years to go to retire but not looking like an early escape is very likely!
Page 1
    • Filo25
    • By Filo25 30th Oct 18, 2:22 PM
    • 1,733 Posts
    • 2,557 Thanks
    Filo25
    • #2
    • 30th Oct 18, 2:22 PM
    • #2
    • 30th Oct 18, 2:22 PM
    I know that the pensions pots go up and down throughout their lives. but checking on line my pots seem to have dropped quite a bit in the last few months. Is this because of Brexit or another reasons?

    Still have about 20 years to go to retire but not looking like an early escape is very likely!
    Originally posted by jubilee14
    There has been a noticeable downwards correction in global equity markets for the last month or so, to be honest it has been a pretty down year for most markets outside North America
    • dunstonh
    • By dunstonh 30th Oct 18, 2:27 PM
    • 95,849 Posts
    • 63,569 Thanks
    dunstonh
    • #3
    • 30th Oct 18, 2:27 PM
    • #3
    • 30th Oct 18, 2:27 PM
    I know that the pensions pots go up and down throughout their lives. but checking on line my pots seem to have dropped quite a bit in the last few months. Is this because of Brexit or another reasons?


    nothing to do with Brexit. Just normal market movements.

    Investments zig zag in value on a daily basis. You cant have only zigs. You have to have zags as well.

    The recent drop is minor. Not even classed as a crash. We had a slightly larger loss earlier this year, A number of smaller losses last year. 2015/16 saw a period that lost twice as much over a longer period. And for scale, the dot.com period and the credit crunch saw losses about 4 times the current level.

    All routine and normal. And great news if you are paying in monthly. You need these negative periods and you should be pleased when they happen.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Zola.
    • By Zola. 30th Oct 18, 2:33 PM
    • 1,334 Posts
    • 561 Thanks
    Zola.
    • #4
    • 30th Oct 18, 2:33 PM
    • #4
    • 30th Oct 18, 2:33 PM
    When drops in value happen, does that automatically mean the units are cheaper? Surely its a supply and demand thing?

    E.g. I noticed our Vanguard funds value drop significantly recently, but the unit price is only down by a couple of pounds.
    Last edited by Zola.; 30-10-2018 at 2:37 PM.
    • Thrugelmir
    • By Thrugelmir 30th Oct 18, 2:37 PM
    • 61,083 Posts
    • 54,298 Thanks
    Thrugelmir
    • #5
    • 30th Oct 18, 2:37 PM
    • #5
    • 30th Oct 18, 2:37 PM
    I know that the pensions pots go up and down throughout their lives. but checking on line my pots seem to have dropped quite a bit in the last few months. Is this because of Brexit or another reasons?
    Originally posted by jubilee14
    Trump trade wars, Italian debt crisis, Merkel standing down as Chancellor, Chinese shadow banking, poor company performance etc etc. Take your pick.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Thrugelmir
    • By Thrugelmir 30th Oct 18, 2:40 PM
    • 61,083 Posts
    • 54,298 Thanks
    Thrugelmir
    • #6
    • 30th Oct 18, 2:40 PM
    • #6
    • 30th Oct 18, 2:40 PM
    When drops in value happen, does that automatically mean the units are cheaper? Surely its a supply and demand thing?
    Originally posted by Zola.
    Units are created and cancelled as purchase\sales transaction are made. Units simply reflect the underlying value of the investments held.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Zola.
    • By Zola. 30th Oct 18, 2:49 PM
    • 1,334 Posts
    • 561 Thanks
    Zola.
    • #7
    • 30th Oct 18, 2:49 PM
    • #7
    • 30th Oct 18, 2:49 PM
    Units are created and cancelled as purchase\sales transaction are made. Units simply reflect the underlying value of the investments held.
    Originally posted by Thrugelmir
    Can you go into more detail?
    • lisyloo
    • By lisyloo 30th Oct 18, 2:55 PM
    • 22,736 Posts
    • 11,311 Thanks
    lisyloo
    • #8
    • 30th Oct 18, 2:55 PM
    • #8
    • 30th Oct 18, 2:55 PM
    Still have about 20 years to go to retire

    Let's say the price of burgers varies between £6 and £10.
    If you are buying a burger would you prefer to pay £6 or £10?


    You want the price to be low if you are a buyer.
    • AnotherJoe
    • By AnotherJoe 30th Oct 18, 3:12 PM
    • 11,535 Posts
    • 13,356 Thanks
    AnotherJoe
    • #9
    • 30th Oct 18, 3:12 PM
    • #9
    • 30th Oct 18, 3:12 PM
    I know that the pensions pots go up and down throughout their lives. but checking on line my pots seem to have dropped quite a bit in the last few months. Is this because of Brexit or another reasons?

    Still have about 20 years to go to retire but not looking like an early escape is very likely!
    Originally posted by jubilee14
    Brexit will, all other things being equal have contributed to them going up not down for UK investors. You may have noticed an orange buffoon creating worldwide havoc. Thats the main cause, though a stock market correction has been on the cards for some time. Maybe this is it maybe it isnt.

    As Dunston says this is good news as you have the opportunity whilst putting money into your pension to buy more units at a lower price.

    Its a better than good idea to educate yourself about investing, perhaps try the Monevator website as a starting place and also The Escape Artist on investing and pensions.

    Ps. its funny how many people post here to the same effect you did;
    " i know the stock market goes up and down but why have my pension investments gone down?".
    Its as if theres an intellectual disconnect between the idea that markets go up and down, and the concept that your (pension) investments might also go up and down !
    Last edited by AnotherJoe; 30-10-2018 at 3:18 PM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Thrugelmir
    • By Thrugelmir 30th Oct 18, 3:45 PM
    • 61,083 Posts
    • 54,298 Thanks
    Thrugelmir
    Can you go into more detail?
    Originally posted by Zola.
    New money creates more units.

    Sales\redemptions results in less units.

    The number of units in existance isn't static.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ColdIron
    • By ColdIron 30th Oct 18, 3:47 PM
    • 4,812 Posts
    • 6,330 Thanks
    ColdIron
    E.g. I noticed our Vanguard funds value drop significantly recently, but the unit price is only down by a couple of pounds.
    Originally posted by Zola.
    How do you measure your 'value' if not by unit price? Your number of units does not change. If your units were worth £3 then a drop of £2 isn't something I'd qualify by the word 'only'
    • thriftytracey
    • By thriftytracey 30th Oct 18, 3:56 PM
    • 111 Posts
    • 101 Thanks
    thriftytracey
    I ran a price feed yesterday and my work DC pension investments have gone down £5k in a month. Appreciate my contribution is purchasing more units but I hope this isn't the start of a prolonged fall as I plan to retire next Spring. I was intending to sell my small share portfolio to give me 18 months or so without having to do drawdown but if this continues it won't last very long.
    • TadleyBaggie
    • By TadleyBaggie 30th Oct 18, 4:03 PM
    • 2,948 Posts
    • 2,266 Thanks
    TadleyBaggie
    Could you please clarify who is the orange buffoon?
    Originally posted by rangersfc
    Itís Trump.
    • AnotherJoe
    • By AnotherJoe 30th Oct 18, 4:04 PM
    • 11,535 Posts
    • 13,356 Thanks
    AnotherJoe
    AnotherJoe,
    Could you please clarify who is the orange buffoon? Very disrespectful terminology, in my opinion.
    Regards,
    mrwmartin
    Originally posted by rangersfc

    I'd say given the worldwide damage he's causing, plus now doing his best to poison US citizens even more than they are already being poisoned, plus the US job losses through ludicrous policies* its verging on respectful.
    I'd also say buffoon is very accurate, if you fact check pretty much anything hes ever said he either contradicted it before or since or both ,and its untruthful anyway.


    * such as, for example, putting a tariff on imports of solar panels from china in the name of protecting US companies, such tariffs that only benefited two non-US companies and put thousands of American solar panel installers out of work. That's one of hundreds of similar counter productive policies.
    Last edited by AnotherJoe; 30-10-2018 at 4:07 PM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Thrugelmir
    • By Thrugelmir 30th Oct 18, 4:05 PM
    • 61,083 Posts
    • 54,298 Thanks
    Thrugelmir
    I'd say given the worldwide damage he's causing
    Originally posted by AnotherJoe
    The Chinese don't play by their own rules then? With their own very clearly stated national objectives.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • k6chris
    • By k6chris 30th Oct 18, 4:31 PM
    • 307 Posts
    • 519 Thanks
    k6chris
    Could you please clarify who is the orange buffoon? Originally posted by rangersfc



    It’s Trump.
    Originally posted by TadleyBaggie

    I am outraged, he is NOT orange......
    "For every complicated problem, there is always a simple, wrong answer"
    • rangersfc
    • By rangersfc 30th Oct 18, 6:02 PM
    • 60 Posts
    • 25 Thanks
    rangersfc
    Thanks for the clarification. I am disappointed at the disrespect shown towards the President of the United States, the United Kingdoms strongest ally.
    Despite the distasteful propaganda thrown his way by the media and the other haters, he has the support of many millions of Americans and many people in the UK also support his views.He does what it says on the tin!
    Free speech is to be cherished, but please be civil.
    Regards,
    mrwmartin
    • dmelife
    • By dmelife 30th Oct 18, 6:08 PM
    • 47 Posts
    • 56 Thanks
    dmelife
    Ha ha ha, and a rangers fan to boot!
    • thriftytracey
    • By thriftytracey 30th Oct 18, 6:09 PM
    • 111 Posts
    • 101 Thanks
    thriftytracey
    Thanks for the clarification. I am disappointed at the disrespect shown towards the President of the United States, the United Kingdoms strongest ally.
    Despite the distasteful propaganda thrown his way by the media and the other haters, he has the support of many millions of Americans and many people in the UK also support his views.He does what it says on the tin!
    Free speech is to be cherished, but please be civil.
    Regards,
    mrwmartin
    Originally posted by rangersfc


    Is this post a wind up?
    • rangersfc
    • By rangersfc 30th Oct 18, 6:36 PM
    • 60 Posts
    • 25 Thanks
    rangersfc
    dmelife,
    You want to boot a Rangers fan?
    thriftytracey,
    No.
    I do not wish to sidetrack this post any farther and I apologise to jubilee14,
    Regards, mrwmartin
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