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bearbullfence

Where To Put Pension

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Normally this question doesn't arise, but the limited funds available through my new pension provider means I need to think about it.

Options are:

Cash

Index Linked Gilt

Bonds

Uk Equity (active)

Uk Equity (passive)

Global Equity (passive)

Blended option of an acitve global fund and passive Uk fund.

Personally I don't like passive funds - what the hell are you paying someone for if it is a passive fund? I want someone at their terminal shouting sell into two dozen greasy microphones around their head as soon as things look dodgy. I might as well do Dogs of the FTSE or something.

I don't think UK equity is where I should put my money at the moment anyway. I think the ftse may have another few months riding out the 6600 peaks then drop once the downturn hits. But then a passive global fund would fire investments like a scatter gun all over the world. I think china, us and western europe also are looking decidely overvalued which is the main stay of the global fund.

So what's left? Bonds. Hmm AAA-AA super duper high quality bonds, trust us I'm an investment banker? Me thinks not. Besides the performace on the fund has been negative for the past year. So then what? Gilts. A tasty 3% growth a year? I'm 28 man, not 58.

So my reluctant option right now is cash. Anyone think this is completely misguided?

BTW, if someone says I should invest in a safe, a gun rack, a couple of hundred mercenaries and buy krugerrands till i can swim in them al la Scrouge McDuck I will be paying them a late night visit - look at my avatar, do you really want THAT?!?!

TIA

BBFence

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I have no doubt that my approach will not suit everyone, and may even cause a few to splutter into their coffee, but for the time being I have put my pension funds in cash. I did this earlier in the year (sometime in/around July) and plan to keep them there at least until all of the toxic CDO nonsense is out in the open and sorted out.

Everyone has their own personal risk threshold. Mine is just very low at the moment. Only you can decide what levels of risk/reward you are comfortable with.

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Guest The_Oldie
I have no doubt that my approach will not suit everyone, and may even cause a few to splutter into their coffee, but for the time being I have put my pension funds in cash. I did this earlier in the year (sometime in/around July) and plan to keep them there at least until all of the toxic CDO nonsense is out in the open and sorted out.

Everyone has their own personal risk threshold. Mine is just very low at the moment. Only you can decide what levels of risk/reward you are comfortable with.

Absolutely agree. I transfered my pension funds to security (the closest thing to pure cash they do) in February. I phoned my pension company two weeks ago and my funds have grown some 2% since February. Very poor, but much better than a loss.

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I have no doubt that my approach will not suit everyone, and may even cause a few to splutter into their coffee, but for the time being I have put my pension funds in cash. I did this earlier in the year (sometime in/around July) and plan to keep them there at least until all of the toxic CDO nonsense is out in the open and sorted out.

Everyone has their own personal risk threshold. Mine is just very low at the moment. Only you can decide what levels of risk/reward you are comfortable with.

Depends how old you are. I'm within five years of retirement so it's cash for me too. But if I was younger I'd grit my teeth and go for equities, ideally emerging market equities!

There's never been a twenty year period in the last century of anglo saxon stock markets where you wouldn't have come out ahead, however there's some stock markets around the world where you'd have had to wait for seventy years to get a real return if your initial buy timing was bad. But for a young person, with a long pension scheme ahead of them that includes paying in over a long time, then "pound cost averaging" means equities is the only way to go.

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