Judging the performance of a long term investment like a pension over a relatively short period like a year is not really that meaningful.
Don't forget that you presumably benefited from significant tax/PRSI relief on contributions so this is a very tax efficient way of saving for retirement.
Judging the performance of a long term investment like a pension over a relatively short period like a year is not really that meaningful.
Don't forget that you presumably benefited from significant tax/PRSI relief on contributions so this is a very tax efficient way of saving for retirement.
Unless you are within a few years of retiring you really should at least consider having most or all of it in one or more high equity content (up to 100%) equity funds and not paying too much attention to relatively short term fluctuations/volatility. But a lot depends on personal circumstances, preferences etc.
Unless you are within a few years of retiring you really should at least consider having most or all of it in one or more high equity content (up to 100%) equity funds and not paying too much attention to relatively short term fluctuations/volatility. But a lot depends on personal circumstances, preferences etc.
NO - I would argue that you need to review your pension funds regularly.
If you are at the top of an equity market and the future is gloomy then a 100% equity position should really be at least partially locked into cash until the clouds ar least clear, most "managed" funds are actually index trackers - eg consensus or managed by fund managers who rarely beat the index - so where does that leave you - locked into a downwards rollercoaster ride if you get stuck in equities as the markets fall.
Most good observers feel that a global depression is possible and a global recession likely (I am not going to argue the obvious here - look yourself)
In this extreme situation - a cash position is not a bad thing to lock in previous gains / funds invested - remember after dotcom and your funds were underwater by 50% - it took a 100% gain over the next four years to get that back.
So - in summary riding the indexes downwards is foolish - pinning your hopes on a top-class fund manager who will be doing the above and trying his best to get out at the top / in at the bottom / new markets early is OK - but they are so rare to find - why do Irish fund managers hold 20-25% in Irish equity when it accounts for less than 1% of european equity - VIs.
Yes the sheeple will go on about you can't time the market and dollar cost averaging - but a long term position is generally a bet that went wrong.
If you don't believe me - have a look at 10/15 year index performances
signed - happy in cash / commodities since june 2007 for equity holdings and june 2006 for property holdings - waiting for the recovery.
Please note that I never said not to do this. I did say not to be unduly concerned about relatively short term volatility/market fluctuations. I totally disagree about attempting to time the market on a long term investment such as a pension as you seem to be suggesting.