Managing pension funds
Discussion
Mid 30's and looking for tactical pension advice.
Over the past few years, I've taken an active interest in managing my pension. I've managed to double one of my pots on interest alone by putting everything into a high risk fund. In theory, by retirement age I should have over £1m in that pot through interest alone.
What sort of strategy should I be employing with regards to risk?
I have a few pots accumulated through different companies and I'm considering consolidating them into one pot, but maintaining a high risk/interest factor.
I often see it banded about that as you get near retirement age you should be putting everything into low risk funds. I'm 30 years off from that. But what about the now? And what do you do if it looks like a recession is inbound? Stay as you are and wait for it to bounce back? Move everything to safe fund(s) until the economy picks up again?
Over the past few years, I've taken an active interest in managing my pension. I've managed to double one of my pots on interest alone by putting everything into a high risk fund. In theory, by retirement age I should have over £1m in that pot through interest alone.
What sort of strategy should I be employing with regards to risk?
I have a few pots accumulated through different companies and I'm considering consolidating them into one pot, but maintaining a high risk/interest factor.
I often see it banded about that as you get near retirement age you should be putting everything into low risk funds. I'm 30 years off from that. But what about the now? And what do you do if it looks like a recession is inbound? Stay as you are and wait for it to bounce back? Move everything to safe fund(s) until the economy picks up again?
'Tactical pension', I like it 
When you say 'I've managed to double one of my pots on interest alone by putting everything into a high risk fund', I can understand what a high risk fund is - take the risk, get the 100% growth - but what do you mean by interest?
Ah I get it. I think you're confusing growth with interest; two opposite ends of the investment spectrum!
On a high risk fund, if you've made a big gain, you can do two things - hold on and hope for more (but if it's had a good run it may well go down as everybody else takes profits) or check out as you suggest and count your winnings, before deciding which horse to back next time. The advantage of youth is that if you f
k up and lose a shedload, you have earnings to replace it, and time for investments to recover.
When you say 'I've managed to double one of my pots on interest alone by putting everything into a high risk fund', I can understand what a high risk fund is - take the risk, get the 100% growth - but what do you mean by interest?
Ah I get it. I think you're confusing growth with interest; two opposite ends of the investment spectrum!
On a high risk fund, if you've made a big gain, you can do two things - hold on and hope for more (but if it's had a good run it may well go down as everybody else takes profits) or check out as you suggest and count your winnings, before deciding which horse to back next time. The advantage of youth is that if you f
k up and lose a shedload, you have earnings to replace it, and time for investments to recover.fasimew said:
I often see it banded about that as you get near retirement age you should be putting everything into low risk funds.
I think this is less of a view nowadays - i.e. it applied when people retired at 65 and needed their pot to keep them going until 75 when they popped their clogs and didn't want a couple of bad years to screw them over. Nowadays, people retire at 65 and intend on living until 95 so the advice can be to keep it invested as normal as you still have a 30 year horizon on the day you retire. i.e. why would you elect to miss out on 30 years of compounding.
Well done on taking control of your pension(s).
I would think with a long timeframe then now is the time to take on higher risk e.g: whether that be heavy US or EM allocation or whatever view you take.
The markets have been kind to my US heavy funds/ETF's but no idea of that will continue into next year/5/10/20 years etc...the million dollar/quid question.
I would think with a long timeframe then now is the time to take on higher risk e.g: whether that be heavy US or EM allocation or whatever view you take.
The markets have been kind to my US heavy funds/ETF's but no idea of that will continue into next year/5/10/20 years etc...the million dollar/quid question.
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