When stocks rebound, WHERE best to invest?

[ryanb741]

I've never known anyone to trade their pension so actively as you Ryan; good luck.

I'm not usually anywhere near as active as this and just 'play' with small amounts but I don't feel comfortable having a huge equity position and the overnight rally gave me an opportunity to get out with much smaller losses.

[Montello]

I'm not usually anywhere near as active as this and just 'play' with small amounts but I don't feel comfortable having a huge equity position and the overnight rally gave me an opportunity to get out with much smaller losses.

Did you watch that Shack video linked above?

Being out of the market for just a few key days in cash can seriously dent your long term wealth; if you are about to retire I can see the value in reducing equity exposure but I believe you are some years away from retiring so meddling as you are will likely damage your long term prospects ... but maybe your market timing moves will work out ... who knows ... all I know is its very difficult to call the markets; full time teams of professionals fail at it so I have given up trying to outsmart them ... I have tried this myself with mixed results ... I called the dot com crash and did well but tried to get smart during the covid crash and was too slow to get back in to some cost ... since then I have vowed to be a passive investor.

[Peck]

The general TZ-UK investing rule of thumb is “do the opposite of Ryan”. Works out pretty well more often than not

[hogthrob]

Coming soon: Ryan's guide on using drawdown to fund Spread Betting and Day Trading, for profit and fun*




*Not necessarily your profit, and for a given value of fun.

[stooo]

Coming soon: Ryan's guide on using drawdown to fund Spread Betting and Day Trading, for profit and fun*




*Not necessarily your profit, and for a given value of fun.

And the follow up: How to retire with a six figure income starting with a zero.

[ryanb741]

Very droll. I'm even since the start of March so eat doo doo gents.

[Bondurant]

More to the point of what Slack was saying though, where will you be next March, or in five years? Versus someone who stuck it out.

[stooo]

Very droll. I'm even since the start of March so eat doo doo gents.

So is the fiver on my desk.

[hogthrob]

Very droll. I'm even since the start of March so eat doo doo gents.

[Montello]

As we have entered a new tax year I've been doing a bit of rebalancing ...

Seems our retirement pot is down 1.4% YTD ... not too bad ...

[noTAGlove]

As we have entered a new tax year I've been doing a bit of rebalancing ...

Seems our retirement pot is down 1.4% YTD ... not too bad ...

Well done.

But if you follow general pension investment rules, your hit should also be dependent on how close to retirement you are?

Those younger with almost full exposure to stocks will be hit hardest.

Those closer to retirement, who have significantly more invested in bonds, will be hit less.

Stocks have fallen; bonds very little.

It used to be the % stocks in pension should be 100 minus your age.

So, if you are 65, 35% of your portfolio is stocks. If this is the case, and you are close to retirement you should not be losing a lot from your pension during a SM fall.

Are these rules still the case? I have a DB pension, so don’t keep up to date with pension investment guidelines.

[Ikincooper]

As we have entered a new tax year I've been doing a bit of rebalancing ...

Seems our retirement pot is down 1.4% YTD ... not too bad ...

That’s a great performance given the current market.

I tend not to look too much at my pension, as I’ve still plenty of time before retirement (42 yo) and being 100% in shares and mostly American things are volatile currently. To provide some context to your return, I’ve just calculated that my pension pot is down about 17-18% from the peak.


Sent from my iPhone using Tapatalk

[Montello]

Well done.

But if you follow general pension investment rules, your hit should also be dependent on how close to retirement you are?

Those younger with almost full exposure to stocks will be hit hardest.

Those closer to retirement, who have significantly more invested in bonds, will be hit less.

Stocks have fallen; bonds very little.

It used to be the % stocks in pension should be 100 minus your age.

So, if you are 65, 35% of your portfolio is stocks. If this is the case, and you are close to retirement you should not be losing a lot from your pension during a SM fall.

Are these rules still the case? I have a DB pension, so don’t keep up to date with pension investment guidelines.

100 - your age is a well established rule of thumb but 120 - your age seems to becoming more common I believe as people live longer and have longer retirements.

I believe many managed schemes lifestyle as they approach retirement age but I am on the DIY programme.

My portfolio is 60% stocks and 40% defensive ... I did well putting this years SIPP in on 8th April which has helped.

I probably have too much cash but not sure I'm seeing much benefits of bonds over cash at present.

[wotsthecrack]

As we have entered a new tax year I've been doing a bit of rebalancing ...

Seems our retirement pot is down 1.4% YTD ... not too bad ...

This prompted a look at my DC pot which is 51% Equities and 49% bonds. YTD from 1st Jan is down 3% but up 3% if I look at the tax year 24/25. I'm sitting tight.

[pacifichrono]

In my retirement, I have a "wealth management" firm handling my investments. As of Friday, the S&P 500 was down 10.1% YTD, but my portfolio was only down 1.9%. Of course, I'm on a conservative equity/bonds mix.

[dandanthewatchman]

In my retirement, I have a "wealth management" firm handling my investments. As of Friday, the S&P 500 was down 10.1% YTD, but my portfolio was only down 1.9%. Of course, I'm on a conservative equity/bonds mix.

And that is undoubtedly the right plan for you

However those that have lost the 10% and more will have likely benefited from massive rises in the last 2 years


Sent from my iPhone using TZ-UK mobile app

[M1011]

Well done.

But if you follow general pension investment rules, your hit should also be dependent on how close to retirement you are?

Those younger with almost full exposure to stocks will be hit hardest.

Those closer to retirement, who have significantly more invested in bonds, will be hit less.

Stocks have fallen; bonds very little.

It used to be the % stocks in pension should be 100 minus your age.

So, if you are 65, 35% of your portfolio is stocks. If this is the case, and you are close to retirement you should not be losing a lot from your pension during a SM fall.

Are these rules still the case? I have a DB pension, so don’t keep up to date with pension investment guidelines.

Is that still the general rule? I'm forever off retirement so perhaps I have this wrong, but I though now that annuities had gone out of fashion people were staying exposed to the market well into retirement.

[pacifichrono]

And that is undoubtedly the right plan for you

However those that have lost the 10% and more will have likely benefited from massive rises in the last 2 years

Yes, I am sure you are spot on!

[Montello]

Is that still the general rule? I'm forever off retirement so perhaps I have this wrong, but I though now that annuities had gone out of fashion people were staying exposed to the market well into retirement.

I believe you are correct but it’s normal to dial down equity exposure to reduce the risks of a crash as you have less time to recover plus you don’t want to be forced to sell cheap when you have no income.