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Where Should I Put My Pension?

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Seriously, I told my IFA that my SIPP wasn't performing like I want (currently in paranoid cash funds) and she suggested some options:

1/ UK Commercial property funds

2/ UK Equity funds

3/ UK Corporate bonds

4/ UK Gilts

5/ Floating Rate Notes, Certificates of Deposit, Bonds (Overseas and domestic)

All investments are through managed funds which spread across the chosen sector.

Which would you pick?

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Seriously, I told my IFA that my SIPP wasn't performing like I want (currently in paranoid cash funds) and she suggested some options:

1/ UK Commercial property funds

2/ UK Equity funds

3/ UK Corporate bonds

4/ UK Gilts

5/ Floating Rate Notes, Certificates of Deposit, Bonds (Overseas and domestic)

All investments are through managed funds which spread across the chosen sector.

Which would you pick?

Find out what your IFA wouldn't suggest, and pick that.

I'm glad I did.

....for now.

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Hmmm, bonds? A market that has been in bull mode for 30 years with huge economic and sovereign debt monsters lurking in the shadows?

Equities, currently valued at near pre-crash values, despite no signs of real growth in the world economy?

Property?! Why are you listening to this guy? He gets paid for this advice? :lol: But of course, he is official, so his words carry gravitas, he isn't some random bole on a blog telling you what to do. ;)

Here's a couple of ideas your IFA won't tell you about, because it doesn't pay THEM to tell you about it:

http://lynncoins.com/spot1.htm

Both of these are breaking records today. As for pensions, I'm not sure about the physical stuff, but I assume you are free to put as many precious metal mining stocks in your SIPP as you please. These will see explosive growth in the coming years, making leveraged gains over the metal itself, although do be aware of the threats of nationalisation and government intervention in such investments, something that isn't a concern with the real thing. Really mining stocks should be used as a higher-risk (but higher reward) complement to a core physical position.

Edited by General Congreve

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Seriously, I told my IFA that my SIPP wasn't performing like I want (currently in paranoid cash funds) and she suggested some options:

1/ UK Commercial property funds

2/ UK Equity funds

3/ UK Corporate bonds

4/ UK Gilts

5/ Floating Rate Notes, Certificates of Deposit, Bonds (Overseas and domestic)

All investments are through managed funds which spread across the chosen sector.

Which would you pick?

Well I'd certainly avoid UK Gilts as they're so overvalued already, it's easy to see gilts downside but very difficult to see any further upside.

Corporate bonds are a little better, but still high and very vulnerable to any rise in interest rates.

I'm a UK equity bull (especially large caps with good dividend records and exposure to emerging markets, ie BAT, Shell, Unilever etc) but I'd have to accept that equities have appreciated nearly 70% since their recent lows, I'm convinced there's another 20% or so still to go but they aren't a giveaway bargain.

UK commercial property offers the best value on your list, they won't fully recover (or even begin to recover) until the market sees they're able to roll over their financing throughout 2011.

Good luck!

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Well I'd certainly avoid UK Gilts as they're so overvalued already, it's easy to see gilts downside but very difficult to see any further upside.

Corporate bonds are a little better, but still high and very vulnerable to any rise in interest rates.

I'm a UK equity bull (especially large caps with good dividend records and exposure to emerging markets, ie BAT, Shell, Unilever etc) but I'd have to accept that equities have appreciated nearly 70% since their recent lows, I'm convinced there's another 20% or so still to go but they aren't a giveaway bargain.

UK commercial property offers the best value on your list, they won't fully recover (or even begin to recover) until the market sees they're able to roll over their financing throughout 2011.

Good luck!

Yep, good luck with commercial property, I don't know about you lot, but I certainly haven't seen legions of empty offices, workshops, warehouses and shops anywhere near the UK recently.

A word of caution. This weekend, the girlfriend of a friend who has just started a job at BHS was telling me the shocking news that BHS have not made a profit since 2002! Not only this, but no one at the company seems the slightest bit worried, even though they are now missing payments to creditors! Looks like they'll be a few more empty commercial buildings coming to a street near you soon.

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Buy the Nikkei.

That's a favourite Money Week tout, the idea being it is so hated and so low, the only way is up. Of course, there is currency risk with the Nikkei, because of all Japan's debt, so that needs to be factored in. No good the Nikkei doubling if the Yen halves in value.

Edited by General Congreve

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Yep, good luck with commercial property, I don't know about you lot, but I certainly haven't seen legions of empty offices, workshops, warehouses and shops anywhere near the UK recently.

A word of caution. This weekend, the girlfriend of a friend who has just started a job at BHS was telling me the shocking news that BHS have not made a profit since 2002! Not only this, but no one at the company seems the slightest bit worried, even though they are now missing payments to creditors! Looks like they'll be a few more empty commercial buildings coming to a street near you soon.

LOL. The well-known commercial area of Bristol where a close friend works is now full of "to-let" office buildings. Large 4-figure people ones. Wasn't the case just 2 years ago.

Cool, I wonder if BHS is listed? May have a wee punt at a SB.

To the OP: Agreed with the others, generally, avoid everything on that list your advisor gave you. Also, avoid anything tipped in the MSM (unless you bought it ages ago at a cheap price in which case get ready to sell into the spike). Yes, that includes MoneyWeek and RHPS. You sound conservative so, try European / US blue-chip funds, or a good global income fund as a choice. There are funds out there with a minority in PMs (say 10%) so you don't have to even buy a pure PM / miner fund for exposure. It sounds like capital protection is what you want rather than income, but my conservative income funds are doing just fine and exceeding the UK inflation rate (which I think is falsely low anyway). My choice would be energy (read oil, then gas) and I would push energy stocks but that's just me.

Edit: MoneyWeek have been pumping the Nikkei for years. I wouldn't put more than a smidgeon into there, the "Lost Decade" is starting to look like it could be a "Lost Half Century" !

Edited by Cash with Nowhere to Go

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Find out what your IFA wouldn't suggest, and pick that.

I'm glad I did.

....for now.

I already did this once. She didn't suggest getting out of the market in 2007, I told her to get me out of everything and into cash. She later had the absent-minded cheek to say, "Thank Heavens one of my customers isn't losing money!"

However I think it's time to move out of cash and into something a bit more adventurous.

Commercial property is interesting. It's mainly about rents not values. Provided the tenants keep paying the fund stays good. But a double dip will bring voids...

UK Gilts... an IR rise is coming, yields rise, values fall... avoid

I'm not willing, and probably not able to get for a single sector mining stock, and noticeably gold shares haven't gone up like gold prices. Presumably the markets think gold is in a spike and mining stock is effectively a purchase of gold futures.

So that leaves the Corp bonds and equities, most are UK registered but not dependant on the UK economy to any great extent. And active fund managers have enough freedom of action to dodge bullets. If you're in UK property and it turns down there's nowhere to go but other UK property. UK Gilts even worse - monopoly supplier.

And of course FRNs and CDs.

So I guess that's where I'll go.

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I already did this once. She didn't suggest getting out of the market in 2007, I told her to get me out of everything and into cash. She later had the absent-minded cheek to say, "Thank Heavens one of my customers isn't losing money!"

However I think it's time to move out of cash and into something a bit more adventurous.

Commercial property is interesting. It's mainly about rents not values. Provided the tenants keep paying the fund stays good. But a double dip will bring voids...

UK Gilts... an IR rise is coming, yields rise, values fall... avoid

I'm not willing, and probably not able to get for a single sector mining stock, and noticeably gold shares haven't gone up like gold prices. Presumably the markets think gold is in a spike and mining stock is effectively a purchase of gold futures.

So that leaves the Corp bonds and equities, most are UK registered but not dependant on the UK economy to any great extent. And active fund managers have enough freedom of action to dodge bullets. If you're in UK property and it turns down there's nowhere to go but other UK property. UK Gilts even worse - monopoly supplier.

And of course FRNs and CDs.

So I guess that's where I'll go.

:lol:HA ! And you stayed with that IFA, even though you out advised her in 2007? Wasn't that a red flag?

Anyway, your call on the pm's/mining stocks (actually they've made some big gains in the last few months from seriously depressed prices - if only I had got in then), good luck with whatever you choose. Remember to check back and let us know how it's going at some point.

EDIT: Yes, property is about yield, but with so much extra supply in the market there is only one way yield can go in the medium to long term.

Edited by General Congreve

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:lol:HA ! And you stayed with that IFA, even though you out advised her in 2007? Wasn't that a red flag?

To be fair, I think of her more as an execution-only IFA! ;)

(Oh look, we've been moved to an investment forum! I didn't even know there WAS an investment forum!)

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I already did this once. She didn't suggest getting out of the market in 2007, I told her to get me out of everything and into cash. She later had the absent-minded cheek to say, "Thank Heavens one of my customers isn't losing money!"

However I think it's time to move out of cash and into something a bit more adventurous.

Commercial property is interesting. It's mainly about rents not values. Provided the tenants keep paying the fund stays good. But a double dip will bring voids...

UK Gilts... an IR rise is coming, yields rise, values fall... avoid

I'm not willing, and probably not able to get for a single sector mining stock, and noticeably gold shares haven't gone up like gold prices. Presumably the markets think gold is in a spike and mining stock is effectively a purchase of gold futures.

So that leaves the Corp bonds and equities, most are UK registered but not dependant on the UK economy to any great extent. And active fund managers have enough freedom of action to dodge bullets. If you're in UK property and it turns down there's nowhere to go but other UK property. UK Gilts even worse - monopoly supplier.

And of course FRNs and CDs.

So I guess that's where I'll go.

And of course FRNs and CDs.

What are they then?

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That's a favourite Money Week tout, the idea being it is so hated and so low, the only way is up. Of course, there is currency risk with the Nikkei, because of all Japan's debt, so that needs to be factored in. No good the Nikkei doubling if the Yen halves in value.

If retirement is 20-30 years away then it makes sense to buy the most bombed-out sectors you can now. I'm overweight on Japanese shares, & housebuilders and expect to be so for the next 5 years at least. At some point they'll be fairly valued and I'll and rotate and buy what's bombed out at that time.

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How old are you? This is important as it determines the level of risk you should be taking.

I have read commercial property is still quite near it's low so might be good for a long term investment.

I like UK equities but not much upside in stocks at the moment and could be some downside. Maybe some high dividend stocks?

If you want a bit of risk with potential for higher returns I can recommend the following investments which are well down from their recent peaks following heavy corrections:

1) XFVT - vietnam

2) ITKY - Turkey

3) INRGY - down 70% from it's peak - clean energy shares

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A buying opportunity!

Yes it definitely is.

ISJP for japanese small caps ETF. IJPN large caps.

I prefer the small caps.

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A word of caution. This weekend, the girlfriend of a friend who has just started a job at BHS was telling me the shocking news that BHS have not made a profit since 2002! Not only this, but no one at the company seems the slightest bit worried, even though they are now missing payments to creditors!

Is it BHS policy to reveal their complete financial details to new girls, or do you believe everything you hear? Did she explain why they are still taking on new staff and yet they are now "missing payments to creditors"?

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Is it BHS policy to reveal their complete financial details to new girls, or do you believe everything you hear? Did she explain why they are still taking on new staff and yet they are now "missing payments to creditors"?

Why don't you do what the investment advisors always suggest here in the US and that is to put 10% to 15% of your funds into each type of investment and keep the rest in cash?

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Why don't you do what the investment advisors always suggest here in the US and that is to put 10% to 15% of your funds into each type of investment and keep the rest in cash?

is that the one where you put it all into funds with 1.5% annual fees, and end up with a similar mix of overall underlying shares to a low cost index fund?

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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