Investments. Pleasantly surprised

[jim8flog]

So I finally plucked up the courage to review my investments today dreading a repeat of 2008.

What I lost was about 65% of last years gains.

Very relieved bunny for the time being.

 

[USER1999]

Currently about 20k down on my pension, and another 20k down on other investments. Could be better, could be worse. Not that happy though.

 

[SwingsitlikeHogan]

Maybe I should look. I’ve taken the view that they will be what they will be. I’ve asked our FA and the message is don’t panic - longer term.

A couple of years back I converted quite a large a final salary element so we could pay off all debts inc mortgage and I could take 6months unpaid leave so we could travel.

That has all been done - and though I I have been worrying about my fund collapsing - when I look at where the world is today we are grateful that we did what we did - no matter what state my pension fund is in. We are a lot better off in that respect than most.

 

[PhilTheFragger]

Think it depends on the mix of your investment

Basic trackers will have been hit hard, investments with a mix of equities/bonds/cash less so. And the less the percentage of equities the better.

Those with cash are laughing, notwithstanding inflation of course

 

[TheDiablo]

So I finally plucked up the courage to review my investments today dreading a repeat of 2008.

What I lost was about 65% of last years gains.

Very relieved bunny for the time being.

A nice, but very cherry picked way of looking at it.

The 'gains' made in 2019 were just a recovery from the massive correction in Q4 2018 where 15% was wiped off steadily over a few months - many people were never really aware - Trump, Brexit etc were taking center stage and without a 'Black xday' event it never made it beyond the financial news.

In fact, those 'gains' in 2019 probably never fully recovered from previous highs.

Compare it to summer 2018 and it will look a very different but more realistic picture.

 

[jim8flog]

A nice, but very cherry picked way of looking at it.

The 'gains' made in 2019 were just a recovery from the massive correction in Q4 2018 where 15% was wiped off steadily over a few months - many people were never really aware - Trump, Brexit etc were taking center stage and without a 'Black xday' event it never made it beyond the financial news.

In fact, those 'gains' in 2019 probably never fully recovered from previous highs.

Compare it to summer 2018 and it will look a very different but more realistic picture.

I take the long view on my investments, there will always be highs and lows and as long as the progression over a few years shows an upward trend well above what i could do with my money invested in simple cash accounts I am happy.

 

[rudebhoy]

I've got money in 4 different funds and am about 10% down since last September. Not great but given the FTSE is down about 30%, I'm relatively happy.

Pension is final salary so that's unaffected thankfully.

 

[Crazyface]

A mate of mine at the start of all this was moaning that his fund had lost £50K. He started with £350K, so my eyes just rolled into my head. Oh, and he's not even started to take it yet after retiring 12 months ago. Poor little lamb........

 

[SwingsitlikeHogan]

A mate of mine at the start of all this was moaning that his fund had lost £50K. He started with £350K, so my eyes just rolled into my head. Oh, and he's not even started to take it yet after retiring 12 months ago. Poor little lamb........

His £350,000 sounds a huge load of dosh. However bear in mind that for the fund to be sustainable over a long period, he'll be getting advised to draw down something like 4% of it per annum. 4% of £350,000 is £14,000 a year - and if that's his only income he'll lose about £400 of it in tax - so £13,600 a year. On the basis of that 4% his £50k drop loses him £2000 a year - so he drops to £12,000 a year. If it's his only private pension it's not a vast amount prior to the state pension coming along.

 

[Siolag]

His £350,000 sounds a huge load of dosh. However bear in mind that for the fund to be sustainable over a long period, he'll be getting advised to draw down something like 4% of it per annum. 4% of £350,000 is £14,000 a year - and if that's his only income he'll lose about £400 of it in tax - so £13,600 a year. On the basis of that 4% his £50k drop loses him £2000 a year - so he drops to £12,000 a year. If it's his only private pension it's not a vast amount prior to the state pension coming along.

There'll be a feeding frenzy after this for people like this guy to complain about 'Miss selling' and 'poor advice' because they've given up a final salary pension thats indexed linked for a CETV. I think in 2 years time Final Salary transfers will either be banned or so expensive, that no one will do them.

 

[SwingsitlikeHogan]

There'll be a feeding frenzy after this for people like this guy to complain about 'Miss selling' and 'poor advice' because they've given up a final salary pension thats indexed linked for a CETV. I think in 2 years time Final Salary transfers will either be banned or so expensive, that no one will do them.

Depends who he did it through and when it was done.

When I had mine converted (it was for my first 16yrs of work and so not my only pension) my FA had to jump through many hoops and he himself couldn't make any recommendations; and the specialist colleague who drafted the alternatives for me, recommendations and rational couldn't OK it - it had to go to a separate central audit team. My FA said that they probably would have recommended against a transfer had my wife not got a guaranteed NHS Pension that would cover all our household bills ( once mortgage cleared) - and we had very specific rationale for doing it (my wife's cancer) and what we would do with funds we could release - pay off all loans etc - take 6 months unpaid leave and travel for over four months down-under.

I had plenty of opportunity to say no and I was under absolutely no pressure to convert.

 

[Deleted member 21784]

A mate of mine at the start of all this was moaning that his fund had lost £50K. He started with £350K, so my eyes just rolled into my head. Oh, and he's not even started to take it yet after retiring 12 months ago. Poor little lamb........

considering that pot has to last him the rest of his life its not actually that high...

 

[Siolag]

Depends who he did it through and when it was done.

When I had mine converted (it was for my first 16yrs of work and so not my only pension) my FA had to jump through many hoops and he himself couldn't make any recommendations; and the specialist colleague who drafted the alternatives for me, recommendations and rational couldn't OK it - it had to go to a separate central audit team. My FA said that they probably would have recommended against a transfer had my wife not got a guaranteed NHS Pension that would cover all our household bills ( once mortgage cleared) - and we had very specific rationale for doing it (my wife's cancer) and what we would do with funds we could release - pay off all loans etc - take 6 months unpaid leave and travel for over four months down-under.

I had plenty of opportunity to say no and I was under absolutely no pressure to convert.

I wasn't saying this particular guy, but people like him. Thats exactly how the process should work, but I suspect a lot of people that have little or no previous investment experience will lose the plot when their portfolio drops, and the claims management companies will be along. As mentioned elsewhere, £350,000 isn't a lot when its got to last possibly 25-30 years, and not everyone has a partner with guaranteed income for life. In fact, that is the perfect scenario you have.