Join the dots.Hes a company director, and has been saving into low risk pension plans over the past few years, but with high fees, the outcome, even before inflation, has been negative. Hes 48 at the moment, and happy to invest for 15-20 years.
With an investment timeframe of up to two decades - and maybe even longer if retirement is deferred or the pension is rolled over into an ARF - he really should be exposed to some level - and possibly a high level - of equities.happy to invest for 15-20 years.
Just wondering could you offer any pointers on what would be a suitable investment route for that amount, it could be repeated for the next few years also
Low risk is risky, just a different kind of risk to the ones people are looking to avoid.Join the dots.
It's not at all risky. It's pretty much a nailed down guarantee of terrible returns.Low risk is risky, just a different kind of risk to the ones people are looking to avoid.
has been saving into low risk pension plans over the past few years, but with high fees,
The risk of lower returns is still a risk, regardless of that risk approaching 100%It's not at all risky. It's pretty much a nailed down guarantee of terrible returns.
I agree totally but it's worse than that - it's a built-in certainty, not a risk.The risk of lower returns is still a risk, regardless of that risk approaching 100%
Every time someone mentions low risk they should read this comment.It's not at all risky. It's pretty much a nailed down guarantee of terrible returns.
It's because of inflation that the worst performing investments are so called "low risk" funds. These are overweight in government bonds and since 2020 we are in a bond bear market because interest rates are rising and consequently bond prices are falling.I agree totally but it's worse than that - it's a built-in certainty, not a risk.
Unless there is inflation or in a sharply rising market, you'll rarely get high returns on a low risk fund
In my experience pension providers give much more nuanced and detailed information about funds - they don't just call them "low/medium/high risk" and leave it at that. Here's the information sheet for the fund that most of my pension is invested in for example:There should be a law banning the use of "low risk" to describe investments in bonds because many people have been duped by this sort of terminology
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