Pension

[Yorks85]

Yes, but which equities? And what if I don’t plan on earning beyond my 40s?

This is a bond fund. Bonds are there to smooth the ride. They are less volatile than equities (businesses). They don’t perform aswell as equities.

You sell some equities (businessesand buy more bonds as you get older.

I’m not saying you don’t need a FA.They can be useful in stopping you from selling during a crash.
A crash is perfectly healthy btw.

But I’m saying that their fee’s along with those of fund managers are hugely destructive.
There is a whole debate out there on index v active investibg. Index always comes up top.

Do a bit of research on index vs active. Find a FA does charge by the hour.
None of this ‘just a 3% initial charge Mr Smith’. That’s cr*p
Put say £3,000 into an online compounding interest calculator @ 6% for 40 years and it’s not ‘just 3%’.

 

[Highland Mule]

This is a bond fund. Bonds are there to smooth the ride. They are less volatile than equities (businesses). They don’t perform aswell as equities.

You sell some equities (businessesand buy more bonds as you get older.

I’m not saying you don’t need a FA.They can be useful in stopping you from selling during a crash.
A crash is perfectly healthy btw.

But I’m saying that their fee’s along with those of fund managers are hugely destructive.
There is a whole debate out there on index v active investibg. Index always comes up top.

Do a bit of research on index vs active. Find a FA does charge by the hour.
None of this ‘just a 3% initial charge Mr Smith’. That’s cr*p
Put say £3,000 into an online compounding interest calculator @ 6% for 40 years and it’s not ‘just 3%’.

I’d rather 97k @7% than 100k @6%. And no, I don’t accept that I can manage to select shares as good as the experts - I wouldn’t even know which equities or indexes to chose. Given I’ve asked you that multiple times and you won’t give a straight answer, I’m not sure you do either.

Oh, and why would I need an online calculator to compound 6% over 40 years? It’s a very simple sum (1.06^40).

 

[Yorks85]

If rather 97k @7% than 100k @6%. And no, I don’t accept that I can manage to select shares as good as the experts - I wouldn’t even know which equities or indexes to chose. Given I’ve asked you that multiple times and you won’t give a straight answer, I’m not sure you do either.

Oh, and why would I need an online calculator to compound 6% over 40 years? It’s a very simple sum (1.06^40).

Not trying to be condescending. Sorry!

 

[Highland Mule]

Not trying to be condescending. Sorry!

But you are being evasive - so why not answer my questions?

 

[Yorks85]

But you are being evasive - so why not answer my questions?

I would sleep very easy with all my savings in the S&P500 index which measures the performance of the largest 500 listed companies in America.

But i can cope with seeing my investments DOWN 40% every now and then. Something most people can’t emotionally handle.

Or the FTSE All World

There doesn’t need to be any switching. No buy high sell low. Because that is beyond human ability.

The active funds will always be around because people will always buy into marketing and as humans we seek to outperform.

A FA can select your asset allocation. But that’s a 1-2 hour job. Frankly, they will probably have about 10 templates ready made!

But a FA cannot say that the funds they choose will beat the index. What he can tell you is ..”it is very unlikely the actively managed funds will outperform their benchmark over the long term”.

 

[Highland Mule]

I would sleep very easy with all my savings in the S&P500 index which measures the performance of the largest 500 listed companies in America.

Ah, well that’s where we differ. I don’t want funds that let me sleep easy - I want higher risk/ reward for my money.

And yes, there does need to be switching - to rebalance the geographic splits so I’m not over exposed to a historical high performer who is going off the boil.

 

[Yorks85]

The s&p has delivered 12% annually over the long term. This is even when you take into account the huge crashes we hear of.

No human can call when a country is about to boil over and outperform the market. Any news will be priced in.

This is hurdle we can’t pass. If they do it once in their career they are a star. Luck will have had a large part to play.