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Spoke To My Pensions Advisor Today

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I spoke to my pensions / financial advisor today, and I think he was suprisingly honest.

Bearing in mind he was trying to sell me a pension he admitted that none of the funds were performing that well at the moment, and probably wouldn't for a while.

He agreed that we were heading for a recession, and that housing was a poor investment at the moment.

He also said that SIPPS would have little or no affect on the housing market, and certainly would not be starting any more booms, that it has been hyped in the media, and that in reality its only for business owners or property professionals.

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I spoke to my pensions / financial advisor today, and I think he was suprisingly honest.

Bearing in mind he was trying to sell me a pension he admitted that none of the funds were performing that well at the moment, and probably wouldn't for a while.

He agreed that we were heading for a recession, and that housing was a poor investment at the moment.

He also said that SIPPS would have little or no affect on the housing market, and certainly would not be starting any more booms, that it has been hyped in the media, and that in reality its only for business owners or property professionals.

Uhmm, not sure if either you heard him incorrectly or he's talking out of his rear end, but:

"none of the funds were performing that well at the moment"

The last time I looked at the FTSE100 it was on course for a 20% return this year - I can't believe he doesn't have a tracker of some sort in his goodie bag!

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The last time I looked at the FTSE100 it was on course for a 20% return this year - I can't believe he doesn't have a tracker of some sort in his goodie bag!

Either that or he is managing to make a loss on a rising market!

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Apart from a tracker, funds will be made up of many different stocks. Remember the FTSE rise is mainly due to mining/oil stocks, with my previous employer, we had a choice of about 10 funds I was very surprised how few of them had positioned themselves to take advantage of commodities/oil. This was a couple of years ago and it was obvious to many that there was a bull market forming in this area.

Was also puzzled on how much weighting some funds had in the retailing sector and too much weighting in the US.

:blink:

I think many fund managers just rely on pure luck!

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Uhmm, not sure if either you heard him incorrectly or he's talking out of his rear end, but:

"none of the funds were performing that well at the moment"

The last time I looked at the FTSE100 it was on course for a 20% return this year - I can't believe he doesn't have a tracker of some sort in his goodie bag!

You seem to be under the illusion that pension funds invest their funds in FTSE100 companies.

They invest a proportion of their funds in the stock market - and the rest in a range of other investments including bonds and commercial property etc. Following the bear market after the dot com boom a lot of managed funds are still historically lightweight in equities - showing just what a bunch of tossers run these funds. They wait until after a bull run to move into equities and wait to the end of a bear market to move out. They are hamstrung by inertia and the fear of calling the market wrong and by the size of their positions.

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Apart from a tracker, funds will be made up of many different stocks. Remember the FTSE rise is mainly due to mining/oil stocks, with my previous employer, we had a choice of about 10 funds I was very surprised how few of them had positioned themselves to take advantage of commodities/oil. This was a couple of years ago and it was obvious to many that there was a bull market forming in this area.

Was also puzzled on how much weighting some funds had in the retailing sector and too much weighting in the US.

:blink:

I think many fund managers just rely on pure luck!

Even if your employer was offering 10 funds, a number of them would have been benchmarked on the FTSE100 - in some regards it is irrelevant what is driving the FTSE100, fund managers have to attempt to outperform and certainly, now we are approaching October, if they are not in significant positive territory they would have been fired by now - I just don't believe this pension adviser is giving our comrade sound advice and quite frankly I'd be looking elsewhere for another advisor.

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Uhmm, not sure if either you heard him incorrectly or he's talking out of his rear end, but:

"none of the funds were performing that well at the moment"

The last time I looked at the FTSE100 it was on course for a 20% return this year - I can't believe he doesn't have a tracker of some sort in his goodie bag!

My wife's pension sceme grew by 16% last year, in addition to her contributions. She got her statement this morning. 3 year growth was 5% and 5 year growth was -2%

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My company scheme (I am a trustee) is 20% bonds 80% equities. Of the equities, 50% are UK companies, so 40% of the overall fund.

UK equities are dominated by the FTSE100.

So yes, we are gaining because the FTSE is rising.

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My wife's pension sceme grew by 16% last year, in addition to her contributions. She got her statement this morning. 3 year growth was 5% and 5 year growth was -2%

Pensions, like any other investment, need continual appraisal - shares had a torrid time post dot-com, so the 5 year rate of return comes as no surprise, but the 1, 2 and 3yr returns should have been significantly positive (her 3yr return rate was crap, is her fund purely equity???). The decline in the equity markets post dot-come has in my view definately contributed to the housing bubble as capital coming out of shares has found a new home. I hope that as people observe the recent performance of the equity markets, that the 'hot money' will no longer be channelled to property, but rather to the equity markets...

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Pensions, like any other investment, need continual appraisal - shares had a torrid time post dot-com, so the 5 year rate of return comes as no surprise, but the 1, 2 and 3yr returns should have been significantly positive (her 3yr return rate was crap, is her fund purely equity???). The decline in the equity markets post dot-come has in my view definately contributed to the housing bubble as capital coming out of shares has found a new home. I hope that as people observe the recent performance of the equity markets, that the 'hot money' will no longer be channelled to property, but rather to the equity markets...

Just re-checked the 3 year figure. It was actually 6.7% (industry standard 6.6)

She appears to have a "lifestyle Strategy" (Fidelity. For all years up to 5 years before retirement it's all invested in equities. Thereafter it's progressively moved away from equities towards bonds and cash. in 1 year before retirement it's abot 75% bonds, 25% cash and no equities.

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Casual Observer, my guess is your statement date is to June 30th, the FTSE 100 has risen over 12% since then alone, so you'll see the benefit come through in your statement to Dec 21st assuming the FTSE 100 doesn't crash in the meantime...

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  • 302 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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