Changing Pension fund
Discussion
simon800 said:
That offers absolutely no context whatsoever. 10k could be a 0.1% drop or a 50% drop. How has the fund performed compared to it's peers which invest in similar things?
What I’m interested in is why this minor blip in the markets has got your man on the street investor so shook. Posts like this all all over the usual forums, is it because it’s getting more coverage on news platforms due to the meteoric rise of American tech stocks or something else?fat80b said:
How far from retirement are you?
Assuming you aren’t planning on retiring imminently, then just see it as an opportunity to purchase more at a cheaper price.
I’m personally still of the view that the US will be the right place to have put it when I look back in 15+ years time..
This is the approach I am following, work pension is 100% Equities and US-heavy but if I am able to buy cheaper units when prices drop then happy days.Assuming you aren’t planning on retiring imminently, then just see it as an opportunity to purchase more at a cheaper price.
I’m personally still of the view that the US will be the right place to have put it when I look back in 15+ years time..
However the context and other scenario factors always important for these questions, as I am around 15 years away from retirement.
fourstardan said:
I'm about 15 to 20 years away from using the investment so probably panicing and getting a tad greedy based on the positive results over the last 18.months from the fund.
I view it as my pension still owns the same shares etc. They are currently valued a little lower than before. I've only lost money if I now sell them. okgo said:
The only thing that’ll guarantee the loss is selling and moving to another fund chasing gains that happened in the past.
Absolutely. Like most investors I'd like to go back back to mid-February and sell up (same in 2020 and 2022), but now we've had the fall, it's better to dig in and wait for the recovery than bail out. Indeed, you could see this as a good time to buy more because they're cheaper.fourstardan said:
I'm about 15 to 20 years away from using the investment so probably panicing and getting a tad greedy based on the positive results over the last 18.months from the fund.
You need to reset your concern level. If you were 15/20mths away and you were all in on US Equities but didn't have the risk appetite you thought you did, then sure - panic away. But 15-20yrs away... tune out. Unless that is, you don't think the US economy will have grown significantly enough over the next 2 decades (in comparison to another investment alternative).Buffett's 3 main points:
The stock market will grow over time and the S&P 500 reflects that growth.
Low-cost index funds will outperform most actively managed strategies.
A passive strategy ensures financial security without unnecessary risk or complexity.
Stick to that and you'll probably be ok.
okgo said:
simon800 said:
That offers absolutely no context whatsoever. 10k could be a 0.1% drop or a 50% drop. How has the fund performed compared to it's peers which invest in similar things?
What I’m interested in is why this minor blip in the markets has got your man on the street investor so shook. Posts like this all all over the usual forums, is it because it’s getting more coverage on news platforms due to the meteoric rise of American tech stocks or something else?1. We haven't had sustained market volatility for 15 years, and therefore, many investors are unprepared for pain.
2. Many Investors have piled into what is working now (screenshot from summer last year), and what was working now is no longer working quite so well.
For example, 3x leveraged Nvidia is down around 50% over the last month.
okgo said:
What I’m interested in is why this minor blip in the markets has got your man on the street investor so shook. Posts like this all all over the usual forums, is it because it’s getting more coverage on news platforms due to the meteoric rise of American tech stocks or something else?
Yes it's curious, particularly given there were 20% drops in 2018 and 2022 and a bigger drop in 2020 in between. The odd 5/10% correction happens all the time.I guess a lot of people have charged into US equities at all time highs expecting them to keep going up in a straight line whilst the reality is a bit more nuanced than that.
Plus of course the various clickbait headlines and media getting giddy about daily gyrations in the market.
For example you will see headlines like "US STOCKS PLUMMET!!!" when they've gone down by 0.4% in a day. But there isn't a corresponding headline when they go up 1% the following day...
okgo said:
as some firm said the most successful investors were the ones who died and didn’t touch their accounts anymore.
Fidelity, but no one every found the studyhttps://x.com/MikeZaccardi/status/1155165032101138...
fourstardan said:
I'm about 15 to 20 years away from using the investment so probably panicing and getting a tad greedy based on the positive results over the last 18.months from the fund.
Presumably your investment is still higher than 18 months ago though ?With that time left before you need to touch it the last 3 months result is a tad academic unless your pot was so “small” that the monetary drop was 50% for example.
I really wouldn’t panic but if you are then that 20 years is going to be really stressful !
alscar said:
Presumably your investment is still higher than 18 months ago though ?
With that time left before you need to touch it the last 3 months result is a tad academic unless your pot was so “small” that the monetary drop was 50% for example.
I really wouldn’t panic but if you are then that 20 years is going to be really stressful !
Good honest advice. With that time left before you need to touch it the last 3 months result is a tad academic unless your pot was so “small” that the monetary drop was 50% for example.
I really wouldn’t panic but if you are then that 20 years is going to be really stressful !
I'll leave it as it is, it's gone up/down before!
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