Funds that mirror pension funds?
Discussion
No matter what I try and do with my money, my pension always does far better.
I have a very limited understanding of it all, but I was told that my pension is a fairly standard model that most of the big pension funds use.
So is there a fund that will mirror my pension but that I could cash out at will?
Thanks
I have a very limited understanding of it all, but I was told that my pension is a fairly standard model that most of the big pension funds use.
So is there a fund that will mirror my pension but that I could cash out at will?
Thanks
Simpo Two said:
Could it be partly that a pension fund has an economy of scale that yer average £10K ISA lacks, particularly with reference to the various fees, costs, charges etc that all chip away at the bottom line?
That's a good point.If the OP is trading like a crazy man and racking up £20 each time (£10 buy, £10 sell) that is a 2% fee on a £1k position EVERY TIME!
Good point Ozzie about taxing, but no.
It's mainly that everything I touch turns to s
t.
A small child selecting investments via a game of pin-the-tail would be likely to improve on my selections.
I can't be arsed with it any more and it seems so simple and stress free having it in a pension that it just seems logical
It's mainly that everything I touch turns to s
t. A small child selecting investments via a game of pin-the-tail would be likely to improve on my selections.
I can't be arsed with it any more and it seems so simple and stress free having it in a pension that it just seems logical
LeoSayer said:
Over what time period have you compared?
Pension funds tend to be conservatively invested so that might explain relative outperformance during the market dip from June to September this year.
That's a fair point. I haven't much experience, but I did stick most of my money into shares and funds for the first time around June 1st this year. I can tell you it has put me right off!Pension funds tend to be conservatively invested so that might explain relative outperformance during the market dip from June to September this year.
But even averaging it out across the years: Pensions appear to average c7%. I cant see me ever bettering that. Plus with my pension I don't get stressed every time it drops. I don't even notice.
Who is your pension provider and which funds?
I'm sure that there will be ISAs that seek to invest in the same market / mirror the same index.
BUT - if your ISA has exposure to exactly the same things as your pension you'll really lose our when it does badly.
It's usually best to spread your investments around a bit.
At the moment my ISA money is in Fundsmith & Woodford. Neither are doing spectacularly but they're weathering the downturn ok.
I'm sure that there will be ISAs that seek to invest in the same market / mirror the same index.
BUT - if your ISA has exposure to exactly the same things as your pension you'll really lose our when it does badly.
It's usually best to spread your investments around a bit.
At the moment my ISA money is in Fundsmith & Woodford. Neither are doing spectacularly but they're weathering the downturn ok.
blindswelledrat said:
I did stick most of my money into shares and funds for the first time around June 1st this year. I can tell you it has put me right off!
My suggestion is "shut your eyes" for a while. The worst thing to do IMO is to start chopping and changing just because the markets suffer a significant fall soon after you've invested. With a bit of luck things will improve.Ozzie Osmond said:
My suggestion is "shut your eyes" for a while. The worst thing to do IMO is to start chopping and changing just because the markets suffer a significant fall soon after you've invested. With a bit of luck things will improve.
Deep down I know this is the perfect advice.For some reason I have the ability to look at my pension yearly and not give it a second thought.
For some completely different reason I am obsessed with my non-pension investments and cant stop looking at them.
I cant explain why
OP,
Do you know if you have accumulation or income units within your funds? Next, look at the charging structure. If your pension is cheaper/pricier than your investments, your funds may perform identically, but you'll keep more/less accordingly. Also, what is the share class of the fund, do you know?
Do you know if you have accumulation or income units within your funds? Next, look at the charging structure. If your pension is cheaper/pricier than your investments, your funds may perform identically, but you'll keep more/less accordingly. Also, what is the share class of the fund, do you know?
At the simplest level - a pension is just a wrapper, the investment exposure is chosen by the customer and can be (almost) anything. This means it is typically easy to (broadly) replicate the investment strategy with other investments e.g ISA or unit trust etc.
The tax efficient treatment of pensions will clearly affect the net return achieved by the same investment strategy without / within a pension wrapper. Likewise there might be discrepancies in charges levied by the funds.
I believe that Ginge R is the expert here.
The tax efficient treatment of pensions will clearly affect the net return achieved by the same investment strategy without / within a pension wrapper. Likewise there might be discrepancies in charges levied by the funds.
I believe that Ginge R is the expert here.
Pensions will buy the institutional version of a fund, with little of no upfront charge which puts you behind the eight ball.
Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Your own choices may be too adventurous, exposure to China and developing countries esp Latin American will have had a detrimental effect, and of course with commodities oil & mining not doing well will put the 100 in the toilet too.
That doesn't mean you should start selling and buying stuff that's on the up, analyze and decide if it is appropriate for your age and perhaps just be happy that your pension is doing well.
Do you have access to target funds, they might suit you.
Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Your own choices may be too adventurous, exposure to China and developing countries esp Latin American will have had a detrimental effect, and of course with commodities oil & mining not doing well will put the 100 in the toilet too.
That doesn't mean you should start selling and buying stuff that's on the up, analyze and decide if it is appropriate for your age and perhaps just be happy that your pension is doing well.
Do you have access to target funds, they might suit you.
jeff m2 said:
Pensions will buy the institutional version of a fund, with little of no upfront charge which puts you behind the eight ball.
Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Individual pension funds invest in whatever the individual chooses to invest in!Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Or are you referring to the default managed / lifestyle fund allocation?
sidicks said:
jeff m2 said:
Pensions will buy the institutional version of a fund, with little of no upfront charge which puts you behind the eight ball.
Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Individual pension funds invest in whatever the individual chooses to invest in!Pnsions usually have a much larger bond component than most individuals, probably low at present because of politicians trying to control markets, but that will tend to moderate swings that a cyclic index like the FTSE100 has.
2011 was a very good year for bonds, so that may have also moved your pension ahead of your own choices.
Or are you referring to the default managed / lifestyle fund allocation?
Fortunately the market has moved on from the 80s and now you can put whatever you want in a pension (well ALMOST anything you want).
That's the whole point of the "S" in SIPP.
Couple of things,
1. Some pension investment funds have performed very well over time, for instance the Managed Funds from household names Prudential and Equitable Life.
2. An employer can contribute to a SIPP and this is the way many companies are meeting their new Workplace Pension obligations.
1. Some pension investment funds have performed very well over time, for instance the Managed Funds from household names Prudential and Equitable Life.
2. An employer can contribute to a SIPP and this is the way many companies are meeting their new Workplace Pension obligations.
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