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CentralScrutinizer

My Pension: Should I Switch From Ftse Tracker?

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Hi there

The consensus of this forum seems to be bullish on oil, gold, energy and commodities, and bearish on the UK economy in general. I'm wondering what people have done with their pension funds (and more specifically what I should do with mine). I'm 31, with a pension fund of £30k currently invested 100% in a FTSE all share tracker. Presumably the market will go through many rises and falls before I retire, but after the gains of the last few years it seems silly to watch its value fall again for the next few (assuming we're heading for a recession).

I had a look on the Scottish Equitable site for the funds available to switch it to, and even though there are dozens of options I can't see anything with special emphasis on commodities. I don't know anything about bonds, but apart from cash they seem to be the only option. Would bonds be safe in a recession? They appear to return much better than cash so presumably there's some risk involved.

Any opinions would be welcome. Has anyone parked their fund in cash hoping to time a FTSE crash?

CentralScrutinizer

http://www.fakefags.co.uk

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Opinions are sharply divided about the FTSE, some are bullish and some are bearish. It is very difficult to second guess the market and pull out just at the right time and then go back in at the right time.

Stick to what you have already and keep life simple. As you are investing for the very long term things should work out OK in the long run.

Edited by penbat1

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Hi there

The consensus of this forum seems to be bullish on oil, gold, energy and commodities, and bearish on the UK economy in general. I'm wondering what people have done with their pension funds (and more specifically what I should do with mine). I'm 31, with a pension fund of £30k currently invested 100% in a FTSE all share tracker. Presumably the market will go through many rises and falls before I retire, but after the gains of the last few years it seems silly to watch its value fall again for the next few (assuming we're heading for a recession).

I had a look on the Scottish Equitable site for the funds available to switch it to, and even though there are dozens of options I can't see anything with special emphasis on commodities. I don't know anything about bonds, but apart from cash they seem to be the only option. Would bonds be safe in a recession? They appear to return much better than cash so presumably there's some risk involved.

Any opinions would be welcome. Has anyone parked their fund in cash hoping to time a FTSE crash?

CentralScrutinizer

http://www.fakefags.co.uk

You may get varying replies from different people depending what they are bearish on. From my perspective: I fear deflation more than (hyper)inflation.

My pension fund is a company one, with no input from myself on asset allocation; therefore I have not totally protected myself from what I see as a bearish scenario for ALL asset prices (and perhaps relative yields). My portfolio has been wound down and I’m only holding 5% at the moment in equities.

IF you believe that there is a debt bubble ---- Bonds are not safe. Bonds are debt – public or private, and may not be repaid if / when the bubble bursts. Many debtors will not be in the position to repay you, many will probably default. If you must invest in bonds then consider only high rated bonds (higher yielding junk bonds yield more are named “junk” for a reason). Alternatively (but not entirely conversely)perhaps consider short-term high quality via money market funds.

Otherwise cash in a strongbox is probably the best answer.

And so over to the gold bulls.........................

Edited by vinny

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Stock market investments, particularly if spread across sectors (as in a tracker, although FTSE 100 is now becoming quite lopsided and sectoral), at least are in wealth-generating assets and income from these in addition to any capital growth should not be dismissed. Like property, but more than can be said for precious metals or cash.

Edited by BoredTrainBuilder

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I had a look on the Scottish Equitable site for the funds

Scot Eq is crap.

Miton Special Sits or Ruffer Equity and General. You can access through Merchant Investors Personal Pension.

HTH FP :)

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Scot Eq is crap.

Miton Special Sits or Ruffer Equity and General. You can access through Merchant Investors Personal Pension.

HTH FP :)

Gosh I use Merchant Investors for my pension and invest in Schroder 250 mid caps. They are fab except they dont have any tracker funds.

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<snip>

I had a look on the Scottish Equitable site for the funds available to switch it to, and even though there are dozens of options I can't see anything with special emphasis on commodities. I don't know anything about bonds, but apart from cash they seem to be the only option. Would bonds be safe in a recession? They appear to return much better than cash so presumably there's some risk involved.

Any opinions would be welcome. Has anyone parked their fund in cash hoping to time a FTSE crash?

<snip>

Hi CentralScrutinizer

Funnily enough one of my pensions is with Scot Eq and I'm pretty bearish on the FTSE and stocks in general. I reckon we're facing a deflationary period due to the massive credit expansion we've experienced.

I've moved my pension from the all share FTSE tracker into the Cash(A) fund, which is a short term money market fund. Saying that, since I've done this the FSTE has gained about 8%! Then again, if we do go into a deflation, I'll be happy that I got out at near the peak! If the FTSE doubles, I'll be a bit miffed however :unsure:

Regards,

crude

Edited by crudeFool

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Guest Winners and Losers

I just spoke to my pensions adviser today. Just started at new company. Pension is with Scottish Eq. 5% me and 5% employer. I was going to ask advice, so this thread is perfect! I was going to 60% in medium risk and 20% in UK small companies and 20% in emerging markets (as advised by him). I know nothing about this, but am a bit more wary after what I have learnt on HPC. What do you think? Help appreciated!

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My pension also tracks the ftse all share and I must admit that as I'm bearish on the economy and have been for a while, I would have pulled my pension out about a year ago if I'd thought about it. However, my pension has done very well where it is and I'm very glad I left it. As others have said, its very hard to guess what (or more to the point when) will happen with the markets so I've decided to just leave mine where it is. Who knows, maybe commodities will collapse before the markets do.

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I just spoke to my pensions adviser today. I was going to 60% in medium risk and 20% in UK small companies and 20% in emerging markets (as advised by him).

Pensions adviser (sic!)

So basically you've got a very high risk savings strategy - bad move. Your 'adviser' is an idiot and knows nothing just like 90% of financial advisers.

See all comments above.

Edited by Financial Planner

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Scot Eq is crap.

Miton Special Sits or Ruffer Equity and General. You can access through Merchant Investors Personal Pension.

HTH FP :)

I moved a shed load into Ruffer funds last year and would recommend them

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Guest Winners and Losers

Pensions adviser (sic!)

So basically you've got a very high risk savings strategy - bad move. Your 'adviser' is an idiot and knows nothing just like 90% of financial advisers.

See all comments above.

Constructive advice (not). Gee, thanks.

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Hi CentralS

Like you I wasn't too happy with my previous personal pension with Norwich Union. Although my funds have gone up in the last few years, basically cos most stockmarket indices have risen for the last three years, I found that the gains were no where near as good as what I had achieved by picking some funds in my Fidelity Mini Stocks ISAs in the last three years. In fact the performance was pretty abysmal when I looked into it.

Additionally, the incompetence of Norwich Union in my case was astounding. I had transferred a previous pension to them and they mucked up all the amounts invested, invested in the wrong funds, and it took 9 months to sort this out! I was just desperate for them to sort out the problems so that I could rapidly move the funds away from them!! Even then, when I've requested the transfers they have been similarly useless, not sending out the forms, sending out the wrong values again, etc...

What I have done is to transfer the non-protected funds (my own contributions) to a Hargreaves Lansdown SIPP, who have NO ANNUAL or SETUP charges whatsoever. In their SIPP there is also NO CHARGE to purchase and sell unit trusts and funds, so I plan to invest my pension in a similar way to my ISA. As I am also contracted out of the Second State Pension, I'm not allowed under current rules to transfer the rebated National Insurance contributions (protected rights) to a SIPP, because the government doesn't trust me to invest my own money as I see fit... However I have found that Skandia offer an approved personal pension which is similar to an ISA where you can pick funds from a huge range. This scheme is approved for protected rights, so I am just desperate now to see if Norwich Union are capable of managing this final transfer. I've applied for the pension through Torquil Clark (www.tqonline.co.uk) who I believe will even offer a rebate of some of the ongoing commission they will receive. I've requested all my funds to be invested in the M&G High Interest Fund which is a money market fund, until it becomes clearer what the stockmarket will do next (aren't we near the peak of the dot com boom?)

None of the above is financial advice - it's just a description of what I'm doing. I don't trust the insurance companies one bit to invest my money safely and I'd rather take responsibility for my own future rather than just throw my hands up in the air when / if the stock market goes pete tong either this year or whenever the next crash is due.

Pensions adviser (sic!)

So basically you've got a very high risk savings strategy - bad move. Your 'adviser' is an idiot and knows nothing just like 90% of financial advisers.

See all comments above.

BTW, did anyone see that muppet of a financial adviser on The Apprentice?! He was in change of the budgeting and I think they made around a 40-50% loss this week... Says a lot really

Edited by cbs7

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  • 301 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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