J_Boro_Clock
Active member
Consolidated a few pensions last year, had a 25% growth on the pot in a year, anyone else using similar service
PensionBee
- Thread starter J_Boro_Clock
- Start date
BobUpnDown
Well-known member
I looked at them though it's just putting them into a new pension, I wanted to just pool all into on existing pot, rather than merge all into yet another policy..
VladKinder
Well-known member
They are great for merging your pension pots, but when you look at the funds they choose to put your money in they are not great:
Too many bonds, too much exposure to the FTSE and quite large fees.
IMO, once PB have done all the work for you, move the money into a low cost diverse passive index fund like the ones Vanguard offer on their own platform.
But make sure you pick an Accumulation fund for compounding of dividends.
E.G https://www.vanguardinvestor.co.uk/...se-global-all-cap-index-fund-gbp-acc/overview
And just a boring stat:
Over 20 years more than 90% active managers underperform their bench marks.
There is website called SPIVA which has scorecards:
Too many bonds, too much exposure to the FTSE and quite large fees.
IMO, once PB have done all the work for you, move the money into a low cost diverse passive index fund like the ones Vanguard offer on their own platform.
But make sure you pick an Accumulation fund for compounding of dividends.
E.G https://www.vanguardinvestor.co.uk/...se-global-all-cap-index-fund-gbp-acc/overview
And just a boring stat:
Over 20 years more than 90% active managers underperform their bench marks.
There is website called SPIVA which has scorecards:
Loading…
www.spglobal.com
The markets have been up by about that much so you would have had the same growth in separate pots. They aren't getting you more growth.
Services like that make sense because it's difficult to keep track of multiple pension pots, especially if you have had a lot of jobs. It simplifies things and should make it easier for you to choose your investments but it doesn't really do anything more than that and you can probably DIY it and do the same thing even cheaper because I assume there is some fee to them which may not be the absolute best value.
NorthumberlandBoro
Well-known member
Not sure about putting all your eggs in one basket.
For that reason I'm out.
For that reason I'm out.
VladKinder
Well-known member
A global market fund will have 4,000 to 7,000 stocks with at most 4% exposure to the biggest stock and it automatically rebalances.
But of course you never put all your money into the stock market hoping to get rich quick.
You should have enough money to pay bills and be able sleep easy at night, and that way you Buy right and Sit tight for at least 10 years.
The biggest way investors sabotage themselves is selling when the market is going down.
If you have good long term assets and money you don't need anytime soon on the sidelines you should be buying more.
(like going to your favourite shop and finding the top quality items are on sale).
NorthumberlandBoro
Well-known member
Yes, the markets have served me well over the years. Lost a fortune on paper when big bad events hit(Brexit, pandemic). But as you say if you hold tight/can take a longer term view such events can be smoother out.