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Post by johnofgwent on May 17, 2023 12:35:57 GMT
Standard Life are looking singularly SUB Standard
I might as well put the whole pot into Bitcoin
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Post by Equivocal on May 17, 2023 19:32:55 GMT
Standard Life are looking singularly SUB Standard I might as well put the whole pot into Bitcoin It's bizarre, John. I can understand moving funds into gilts when a member retires, but why on earth the funds (and they almost all do it) move into gilts when members are over 55 and not retired, I just don't understand. In fact, if your provider had not made the usual transfers, your fund would probably have gained 20%. |
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Post by johnofgwent on May 17, 2023 21:26:57 GMT
I don’t know what to do.
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Post by The Squeezed Middle on May 18, 2023 4:45:21 GMT
In the long run, managed funds almost always underperform the market and this is one of the reasons why. OTOH, if they hadn't moved funds into the "Safe haven" of gilts and the market had fallen then people would complain about that.
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Post by The Squeezed Middle on May 18, 2023 4:52:01 GMT
...It's bizarre, John. I can understand moving funds into gilts when a member retires, but why on earth the funds (and they almost all do it) move into gilts when members are over 55 and not retired, I just don't understand... Easy: It's to prevent your pot from being wiped out should the market fall drastically just before you retire. Imagine if the banking crisis or Covid occurred the day before your retirement and your pot reduced by 30% over night. That's what "Lifestyling" is there to safeguard. Of course, it sometimes goes the other way and you miss out on a stock market boom. But then there's never a free lunch. |
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Post by Equivocal on May 18, 2023 5:43:35 GMT
...It's bizarre, John. I can understand moving funds into gilts when a member retires, but why on earth the funds (and they almost all do it) move into gilts when members are over 55 and not retired, I just don't understand... Easy: It's to prevent your pot from being wiped out should the market fall drastically just before you retire. Imagine if the banking crisis or Covid occurred the day before your retirement and your pot reduced by 30% over night. That's what "Lifestyling" is there to safeguard. Of course, it sometimes goes the other way and you miss out on a stock market boom. But then there's never a free lunch. That's the rationale the funds use. Perhaps they should ask themselves, when interest rates are at less than 1%, which is more likely; interest rates increasing from a historic low and devaluing gilts, or a "30%" overnight fall in equities which persists for the 10 years (?) or so that lifestyling is implemented?
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Post by steppenwolf on May 18, 2023 6:56:46 GMT
Agreed. I got rid of bonds shortly after the Credit Crunch when interest rates plummeted. I probably sold too early but, as they say, "always leave something for the next man". I learnt the hard way that leaving it to other people to invest your money is a bad idea.
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Post by walterpaisley on May 18, 2023 7:33:09 GMT
The Star Investor in our family is my Youngest. As a kid, and purely for the purpose of online gaming, he bought a few of a newfangled thing called "Bitcoins", and promptly forgot about them.
By the time he'd remembered where they were, the planet had gone mad and he found he was sitting on crazy money. At 22 (with a little extra chipped in by BOM&D) he was mortgage-free.
Sensibly, I think (and I know NOTHING about investing. It bores the pants off me - I only tend to "invest" in things that might be fun..), he has never touched crypto currency since.
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Post by The Squeezed Middle on May 18, 2023 7:50:39 GMT
With respect that's not investing, it's a gamble that paid off.
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Post by walterpaisley on May 18, 2023 8:12:08 GMT
True enough. And my own "investments" go down as well as up. A third of a tiny cinema will NEVER see anything but losses - but it's great fun. I was only too happy to offload the share in a local pub I once owned (at probably the same return I'd have made by stuffing fivers into my matress). Being an angel on indy films have given the healthiest returns - most things lose every penny, but (for me, at any rate) putting a few quid into one particular comedy easily covered that. My favourite "investments" are through this outfit. www.kiva.org/Micro loans in developing countries. No great "return", sure - but in 15+ years I've never lost anything, and there's the feelgood factor of knowing your money is actually making a difference to someone.. |
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