Savings and Investments thread

RaplhMilne said:

Well taking a start point of about 3 weeks ago, my £170,000 stock/fund portfolio is now worth £154,000 so a 9.4% loss in days.  I’m just glad I took my final salary pension as a pension.  I couldn’t imagine sitting invested with drawdown and seeing near 10% wiped off my future in a few days.  

Will it come back, I expect some stocks will recover quickly. Others may take years. As a Former Lloyds employee, I am overweight in Lloyds which is helping drag me down. 

You must be very heavily weighted in equities. My pension fund has fallen around 5% this week, but I have around 30% in bonds/property.

Not sure when this "correction" will stop & things recover, but it will. As pp have said, the FTSE100 is not a good gauge of UK shares. Big companies like BP make up a large proportion of its value & I think about 6 or 7 shares make up 20% of the overall total.

In my SIPP I'm down just under 3% over the last week. Helped that I sold a few shares a couple of weeks back, also I have a number of Gold funds (majority is in Investec Global Gold) that are picking up some of the share losses. Got a few Royal London Government funds that are also helping.

As always spreading the risk helps, I see too many people say they have spread the risk over say 15 funds, but when you look at them the majority are very similar investments. 

@ralphmilne - If you are drawing your final salary pension I assume you are over 60, if so it sounds like your SIPP investments need reviewing, you shouldn't be down nearly 10%, you must be far too heavy in Stocks.

Points drop, not even in the top 20 for percentage drops. 2008 was much worse. But we’ll need to see where it bottoms out. 

SomervilleAddick said:

Points drop, not even in the top 20 for percentage drops. 2008 was much worse. But we’ll need to see where it bottoms out. 

Exactly. It's not the number it's the percentage. On black monday 1987 the Dow Jones fell less than today (500 points) ........but it was a fall of 22%. That puts things in focus I think.

Covered End said:

FTSE All Share index fallen from 4200 to 3800 in the last few days. 
Roughly a 10% fall.
I'd say a good investment opportunity, but you shouldn't take financial advice from a football forum.

Things could get a whole lot worse, so I'd advise against seeing a 10% fall as an opportunity right now. Gold is at record highs, and I suspect could be set to rise higher.
But as you say, you shouldn't take financial advice from a football forum.

LargeAddick said:

Bit worried as I have all my pension monies in a SIPP.

Question - How does an Annuity work? For example if I had say £300k in my SIPP and needed £15k per annum to live off my Pension is it as simple as saying that the £300k could buy me an Annuity paying me £15k per annum for 20 years?

Edit. - just done a bit of research myself and I see it isn't that simple and probably won't raise as much income as I require. So it will have to sit tight in the SIPP and I'm sure things will improve eventually.

Depending on your age, a £300k fund would get you around £15k pa gross income - that's for life. So quids in if you live for another 30 years but a real bummer if you die in 5 years!

  JamesSeed said:

Covered End said:

FTSE All Share index fallen from 4200 to 3800 in the last few days. 
Roughly a 10% fall.
I'd say a good investment opportunity, but you shouldn't take financial advice from a football forum.

Things could get a whole lot worse, so I'd advise against seeing a 10% fall as an opportunity right now. Gold is at record highs, and I suspect could be set to rise higher.
But as you say, you shouldn't take financial advice from a football forum.

I think Gold will go a little higher, might be a good time to raid the Jewellery box and dig up the sovereigns though  

Rob7Lee said:

LargeAddick said:

Bit worried as I have all my pension monies in a SIPP.

Question - How does an Annuity work? For example if I had say £300k in my SIPP and needed £15k per annum to live off my Pension is it as simple as saying that the £300k could buy me an Annuity paying me £15k per annum for 20 years?

Edit. - just done a bit of research myself and I see it isn't that simple and probably won't raise as much income as I require. So it will have to sit tight in the SIPP and I'm sure things will improve eventually.

https://www.sharingpensions.co.uk/annuity_rates.htm

Gives some idea of what each £100k earns you with either flat or escalation and at different ages, also if you want a spouse pension. Annuities as @bobmunro has stated are for life, so it's always a gamble as to how long you'll live!

To get 15k from £300k you'd pretty much have to have a flat pension and no spouse pension (assuming taking at 65).

Yes agreed - if you wanted to retire earlier, inflation proofing included, and a spouse pension then £300k would get you less than £10k income.

LargeAddick said:

thanks for all the replies. Seems an Annuity is not for me !!

I did tell you this before you transferred your pension. 

Not only are you tied into an annuity it also dies with you (unless you build in a spouse's benefit which means you get less pa than your £15k)......whereas in your Sipp drawdown pension the remaining fund passes tax free UK your spouse (before the age of 75).

I agree.........you shouldn't take financial advice from a football forum, you should see an IFA 😉

Fortune 82nd Minute said:

FTSE down about another 270 points today as the youngsters in the City decide we are all doomed.

What really irks me is years worth of gains are wiped out in days. 

Yes, I know the market will turn. But our fall today will probably drag the Dow lower tonight and so it goes on.

I have a funny feeling it will take years for the market to regain its previous high 

It's not years of gains that are being wiped out......the FTSE is today around where it was in Dec 2018 after if fell 12% in 3 months (remember that....probably not). Then last year those falls were more than made up. It will happen again. I dont know where or when this current downturn will correct itself but it will. In the short term 2 things will happen. 1) investors/traders will see a chance to make a profit (as a pp mentioned) and will start buying selected stocks. 2) We will soon be at the end of a quarter & like car dealers there will be some "squaring off" for their quarterly figures and so the market will rise.
 
FWIW. The FTSE100 had been moving between 7500-7700 since the New Year. Earlier today it was around 6500. My bet it that it will be above 7000 by the summer.......maybe sooner. And back to a range between 7200-7500 by the end of the year.

PragueAddick said:

I think it will take longer than that to get back to 7000. Especially after listening to the interview referred in this tweet.

But every cloud, and that. It looks like Donald Trump has bet his re-election campaign on Golfie calling it right...:-)

https://twitter.com/BBCr4today/status/1233293363744473088?s=20

China have a stated ambition to have GDP of at least 6%pa. It's all bollox of course & manipulated by the Government so it will be interesting to see what figures come out at the end of the year, esp if this quarter is a negative one.

Rothko said:

Be some cheap Apple stock to pick up on Monday

Not the season for apples. 

I wish I had an ISA allowance leftover, I'd be maxing it out right now. 

Huskaris said:

I wish I had an ISA allowance leftover, I'd be maxing it out right now. 

Have you got any Cash ones you could transfer....?