Pension

[ClaireNJ]

Hubbie just had yearly review of his pension it’s lost £9700 over 10% never been like that before & that’s even before Coronavirus 😢

[tspill]

Well if he had lost 10% before CV started, I would be asking questions as the markets have done very well in recent years to that point - a bull market. Mine is up over 10% in the year to just before CV (low risk investments). Standing much the same now as it was a years ago - so haven't really lost anything over the year to CV. What on earth was he invested in that lost 10% (not inc. CV)? It has been really hard to lose money in recent years.

He needs a serious chat with their advisor. Investments are long term (7+ years). If they need to start drawing on these investments, they should be moving them to low risk investments and savings starting 5-7 years out from when they need them.

Bad drops happen every few years. Very bad drops happen a little less often - but they do happen.
If this concerns you/OH, then I think you are invested way above your tolerance to financial risk. A lot of people are finding this out the hard was.

TBH., it really all depends on age and when you need this money.

[ClaireNJ]

Originally Posted by tspill

Well if he had lost 10% before CV started, I would be asking questions as the markets have done very well in recent years to that point - a bull market. Mine is up over 10% in the year to just before CV (low risk investments). Standing much the same now as it was a years ago - so haven't really lost anything over the year to CV. What on earth was he invested in that lost 10% (not inc. CV)? It has been really hard to lose money in recent years.

He needs a serious chat with their advisor. Investments are long term (7+ years). If they need to start drawing on these investments, they should be moving them to low risk investments and savings starting 5-7 years out from when they need them.

Bad drops happen every few years. Very bad drops happen a little less often - but they do happen.
If this concerns you/OH, then I think you are invested way above your tolerance to financial risk. A lot of people are finding this out the hard was.

TBH., it really all depends on age and when you need this money.

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Thanks for advice he’s only 54 but it’s quite worrying that yours is up by 10% & his is down

[YorkshireT]

I lost 100k off mine last week, but we have to remember it isn’t lost until we cash it in. Today I noticed my losses had reduced to 60k (!) but I made about 50k on it the last year.
Unless you are retiring shortly it shouldn’t make much difference hopefully. I have a decade left so am now fairly relaxed. I am kicking myself though as I saw this coming and told my wife I was shifting it to deposit, but when I reviewed it I just changed the funds a bit and didn’t have time to review shifting it to deposit. If I had I would be 60k better off today!
I’m now in a no win situation where I don’t want to cash out- if I’d done that the other day I would’ve have seen the 40k growth since then.
Having the app which lets me see and manage it is a real stress causer at the mo!
But I would question how he lost before Corona, I had about 15% growth. Maybe though he is not in higher risk stocks and won’t be as badly affected.
One thing this has taught me, 5 years from retirement I’ll be transitioning those funds slowly to safer investments.

[tspill]

Originally Posted by ClaireNJ

Thanks for advice he’s only 54 but it’s quite worrying that yours is up by 10% & his is down

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Just looked in a bit more detail.
If I look at 2019 - my core investment (Vanguard LifeStrategy 40 Acc) it was up just over 12% on that - and I think there was already a small drop in December - maybe CV related.
I have a few other supporting investments. One went down the pan (Woodford - I stupidly dropped the ball on that through my laziness), and others are up well over the 12% I mention above, but are higher risk.
I really cant see how anyone could lose money the way the market has been in the past few years - even taking CV into account. Higher risk funds would have made way more than me (and would have been hit harder by CV).

At 54, they need to start thinking about when they want the money out. If this is under 10 years, they need to start putting a derisking plan in place. No one wants to be hit with something like CV at the time that need to use the money and are forced to crystallise their losses. My strategy is plan for what I need to cover 5 years of living in cash (but I have a very low risk to investment risk). Doing this exposes me to inflation risk - but I am OK with that.

If they dont get some seriously good answers from their advisor - they need a new advisor.

[tspill]

Originally Posted by ClaireNJ

Thanks for advice he’s only 54 but it’s quite worrying that yours is up by 10% & his is down

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Not "advice" - that would be against the rules

Good luck!

[ClaireNJ]

Originally Posted by tspill

Well if he had lost 10% before CV started, I would be asking questions as the markets have done very well in recent years to that point - a bull market. Mine is up over 10% in the year to just before CV (low risk investments). Standing much the same now as it was a years ago - so haven't really lost anything over the year to CV. What on earth was he invested in that lost 10% (not inc. CV)? It has been really hard to lose money in recent years.

He needs a serious chat with their advisor. Investments are long term (7+ years). If they need to start drawing on these investments, they should be moving them to low risk investments and savings starting 5-7 years out from when they need them.

Bad drops happen every few years. Very bad drops happen a little less often - but they do happen.
If this concerns you/OH, then I think you are invested way above your tolerance to financial risk. A lot of people are finding this out the hard was.

TBH., it really all depends on age and when you need this money.

See more...

It says the fund is :
Stakeholder Balanced Pension Accumulator
Series 01(PensBaIL 1)
It used to be a HSBC private pension was taken over a few years ago by Reassure
They charge 1% of fund
They’ve offer to change if you want to other funds
Below

[YorkshireT]

Originally Posted by tspill

Just looked in a bit more detail.
If I look at 2019 - my core investment (Vanguard LifeStrategy 40 Acc) it was up just over 12% on that - and I think there was already a small drop in December - maybe CV related.
I have a few other supporting investments. One went down the pan (Woodford), and others are up well over the 12% I mention above, but are higher risk.
I really cant see how anyone could lose money the way the market has been in the past few years - even taking CV into account. Higher risk funds would have made way more than me (and would have been hit harder by CV).

At 54, they need to start thinking about when they want the money out. If this is under 10 years, they need to start putting a derisking plan in place. No one wants to be hit with something like CV at the time that need to use the money and are forced to crystallise their losses. My strategy is plan for what I need to cover 5 years of living in cash (but I have a very low risk to investment risk). Doing this exposes me to inflation risk - but I am OK with that.

If they dont get some seriously good answers from their advisor - they need a new advisor.

See more...

Sorry to hear you were caught on the Woodford, remember a few financial advisors coming to my office and heavily pushing that, glad I didn’t listen. You seem to have done well elsewhere though.

If you’ve got the balls and liquidity now, I think you could make some very good money. I was about to pay a sum in though 2 weeks ago- I chickened out in case I need the money and it’s now sat in the bank instead.

[tspill]

Originally Posted by YorkshireT

Sorry to hear you were caught on the Woodford, remember a few financial advisors coming to my office and heavily pushing that, glad I didn’t listen. You seem to have done well elsewhere though.

If you’ve got the balls and liquidity now, I think you could make some very good money. I was about to pay a sum in though 2 weeks ago- I chickened out in case I need the money and it’s now sat in the bank instead.

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Luckily I wasn't in too deep. Many years ago when I started doing my own investments - when I was still working and could take a few bigger risks - I put a few quid into 4 or 5 higher risk investments. Most have done well - but I was totally caught out on Woodford. Totally my own fault and by the time I got around to doing anything, they had locked trading.

I have been drip feeding a bit into the markets over the past weeks. Not huge sums. I am trying to stick to my 5 years cash strategy, but resisting using some of this to buy is hard. So a wee bit just scratches that itch. Not enough to do too much damage. But who knows what I might do . I know I am TOO risk averse, but that's life.

[tspill]

Originally Posted by ClaireNJ

It says the fund is :
Stakeholder Balanced Pension Accumulator
Series 01(PensBaIL 1)
It used to be a HSBC private pension was taken over a few years ago by Reassure
They charge 1% of fund
They’ve offer to change if you want to other funds
Below

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I haven't looked in detail, but would this be it -
trustnet/factsheets/...er-balanced-pn

This is the fund I have been using as my core -
trustnet/factsheets/...tegy-40-equity

There are one or two IFAs on here might be able to look at that fund more intelligently than I can.