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did anyone's financial advisor tip them off before the crash

2

Comments

  • #32
    Apollinaris
    Registered Users, Registered Users 2 Posts: 114 ✭✭Apollinaris


    delly wrote: »
    To those who say ride it out, why is that a better option than switching to cash now then switch back to your regular fund in 6 months as an example? Can you rejoin a fund the same as anyone who hasn't switched?

    If you are switching to cash now you realise your losses straight away. If you switch back in 6 months as you said above you’ll have significantly less money to buy less fund units, if that make sense. If you keep your fund choice in shares now, you can buy shares with a 20% discount compared to last year.


  • #33
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,837 Mod ✭✭✭✭Jim2007


    delly wrote: »
    To those who say ride it out, why is that a better option than switching to cash now then switch back to your regular fund in 6 months as an example? Can you rejoin a fund the same as anyone who hasn't switched?

    Do you understand why the dollar cost averaging strategy works? It works because in down markets you have a chance to buy more units at reduced prices. If you try to jump in and every time there is an issue then you miss out on a key part of the strategy.


  • #34
    rgace
    Closed Accounts Posts: 479 ✭✭rgace


    delly wrote: »
    To those who say ride it out, why is that a better option than switching to cash now then switch back to your regular fund in 6 months as an example? Can you rejoin a fund the same as anyone who hasn't switched?

    The best time to be paying into your non cash fund is while prices are dropping, as long as you are not close to retirement this is nothing to worry about.


  • #35
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,904 ✭✭✭The J Stands for Jay


    Jim2007 wrote: »
    OP, best ignored this... review the poster's history... he knows no more that you do in the end.

    @Mad_maxx: Time for you to go learn about investing and stop seeking social validation for your nonsense.

    The advisor isn't there to tell you when to time the market, the advisor is supposed to have you set up you finances to achieve your goals. The asset allocations of investments are chosen to attempt to mitigate these situations.

    You'd be surprised to know how many of these lads do get to meet fund managers. Funds are managed all over the place. There's no need for them to be in London or New York, and most of the funds Irish pensions are in aren't managed there.

    TBH, I'd be a bit wary of advisors who are telling pension clients to switch based on short-term price movements.


  • #36
    Millionaire only not
    Banned (with Prison Access) Posts: 1,624 ✭✭✭Millionaire only not


    Mad_maxx wrote: »
    My fiancé and I hope to move house next year, i put 40 k to work in January 2019, was worth 53k the day before the general election here, it's worth 35k now as i was only in two stocks, CRH and Smurfit Kappa

    I only had a third of my savings in the market and thought letting it ride would bump up our spending pot in advance of buying the new house, goes to show you that you should not put a penny in the market unless you can do without it for five years minimum

    There good stocks , no fear of ur money


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  • #37
    Millionaire only not
    Banned (with Prison Access) Posts: 1,624 ✭✭✭Millionaire only not


    delly wrote: »
    To those who say ride it out, why is that a better option than switching to cash now then switch back to your regular fund in 6 months as an example? Can you rejoin a fund the same as anyone who hasn't switched?

    Turn off ur phone and stop reading about what u have invested it will recover ! China was only 6 weeks and once the vaccine is there for sure watch stocks jump !


  • #38
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,616 Mod ✭✭✭✭Zascar


    I had been saying to myself to switch my pension into a less aggressive fund - something mainly on bonds etc - and of course I never did it and now its way down. Gutted. Wondering should I still do it now as I truly think this is just the beginning of a very large downfall, better safe than sorry.

    Only issue is Mercer have closed their dam phone lines so I can't even call them ffs - also not sure how long it takes to do t and if any fees will be incurred.

    Thoughts?


  • #39
    krissovo
    Registered Users, Registered Users 2 Posts: 2,645 ✭✭✭krissovo


    No one here can offer advice without knowing your personal circumstances. Everything depends on when you need your pension. My fund has gone through 2 crashes and each time recovered better than expected through some simple risk management using the assumption the market will recover over time, it always has. I am 10 years away from cashing mine in so this will be my last time switching to the high risk option which I am doing now. As soon as it recovered and hopefully made some money I will switch and stay on low risk strategies.


  • #40
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,837 Mod ✭✭✭✭Jim2007


    Zascar wrote: »
    I had been saying to myself to switch my pension into a less aggressive fund - something mainly on bonds etc - and of course I never did it and now its way down. Gutted. Wondering should I still do it now as I truly think this is just the beginning of a very large downfall, better safe than sorry.

    Only issue is Mercer have closed their dam phone lines so I can't even call them ffs - also not sure how long it takes to do t and if any fees will be incurred.

    Thoughts?


    A pension is about the long term, not what happens in the next five years. If you are young and in good health this should not be a problem. Best thing you can do is stop checking.


  • #41
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,837 Mod ✭✭✭✭Jim2007


    Millionaire only not wrote: »
    There good stocks , no fear of ur money


    It does not matter what the stocks are, with less that than seven positions there is no diversification there, which means when an up lift comes it, may or my not be of much use to someone in that position. From day one this was an accident waiting to happen.



    If the OP stills needs to get their hands on this case in the next five years, then it might still be wise to get out now, 5k down and try to increase savings.


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  • #42
    garbanzo
    Registered Users, Registered Users 2 Posts: 744 ✭✭✭garbanzo


    Apollinaris wrote: »
    About a year ago I switched both my wives and my own pension funds from a share based fund to a bond based fund. I was a laughing stock when I missed out on the highs of the market the end of last year. What made me switch funds was I was very concerned about the very overinflated stock prices (TESLA! and the likes) for me it looked like people and financial institutions borrowing the almost free money and then they reinvest it in the stock market, the only game in town according to everyone. Soon enough I feel I’m going to do a reverse switch, buying share based funds again. Financial advisor is an absolute joke of a job description by the way.

    You have a pension fund for yourself AND both your wives. Respect !


  • #43
    Coil Kilcrea
    Registered Users, Registered Users 2 Posts: 215 ✭✭Coil Kilcrea


    delly wrote: »
    Can you switch to cash temporarily? Ironically I started to pay into a pension this year, very small amounts, but it's already down 20%. The money I have waiting to go next month will be down as soon as it lands in their account. Pension is with Zurich.

    Don’t worry Della because you’re effectively averaging in with your monthly contribution, it’s tax effective and long-term gains are assured.


  • #44
    Coil Kilcrea
    Registered Users, Registered Users 2 Posts: 215 ✭✭Coil Kilcrea


    A few thoughts for perspective for those with an eye on a future pension ....

    Nobody could have foreseen a once in a century type of poison that seeks to kill indiscriminately.

    Fear drives fire sales where every asset class gets burned. We now have panic selling that’s going to continue until we have a cure.

    The markets gains in recent years have been both spectacular and unsustainable. So all of you doubting that you ‘shoulda, coulda, woulda’ now have the opportunity of a lifetime to buy great companies at bargain prices.

    Timing it is impossible, but getting in is essential at prices that are cheap to ensure you get the whiplash when the vaccine is announced. That’s not an if but a when.

    Extreme volatility in both directions will continue for a while.

    If you’re investing in a pension, please don’t forget the tax advantage, the long time frame, the ability to average in and the fact that modest returns compounded deliver a comfortable income for retirement. And you don’t need to sell everything when you retire.

    Finally, perceived wealth destruction is difficult to stomach but irrelevant if you do not need the money instantly.

    Happy hunting ....


  • #45
    mrcheez
    Registered Users, Registered Users 2 Posts: 14,279 ✭✭✭✭mrcheez


    I'm down quite a lot too, but I'm looking at the upside: I'm getting shedloads of shares for the same amount of cash I was putting in last month.


  • #46
    patsy_mccabe
    Registered Users, Registered Users 2 Posts: 11,390 ✭✭✭✭patsy_mccabe


    I tried to open a DeGiro account to buy shares a couple of weeks back just after the CV started. Passport was just out of date. Haven't got my new one yet. All shares I was thinking of buying then have fallen even more since. Beginners luck eh?
    Wondering how long more to sit tight!!!!


  • #47
    Gman1987
    Registered Users, Registered Users 2 Posts: 388 ✭✭Gman1987


    A good few posts here are referring to pension pots down a good bit YTD and asking why they didn't see this coming and wondering what to do. Look at it at this point and time and ask yourself where do you see this going forward. I was invested in a high risk fund that is down 11.6% YTD, I'm not convinced that we are anywhere near the bottom of the stock market yet so I have decided to take any further risk out of it and swapped this over to a cash fund only this week. I'll swap this back over to a high risk fund again when I feel the time is right.


  • #48
    Mad_maxx
    Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Ger1987 wrote: »
    A good few posts here are referring to pension pots down a good bit YTD and asking why they didn't see this coming and wondering what to do. Look at it at this point and time and ask yourself where do you see this going forward. I was invested in a high risk fund that is down 11.6% YTD, I'm not convinced that we are anywhere near the bottom of the stock market yet so I have decided to take any further risk out of it and swapped this over to a cash fund only this week. I'll swap this back over to a high risk fund again when I feel the time is right.

    How on earth is a "high risk" fund only down 11.6% YTD?


  • #49
    Gman1987
    Registered Users, Registered Users 2 Posts: 388 ✭✭Gman1987


    Mad_maxx wrote: »
    How on earth is a "high risk" fund only down 11.6% YTD?

    Its a risk rating 4 (out of 5) managed fund with Irish Life so I'm guessing they make some wise decisions in timing exit from positions.


  • #50
    Mad_maxx
    Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Ger1987 wrote: »
    Its a risk rating 4 (out of 5) managed fund with Irish Life so I'm guessing they make some wise decisions in timing exit from positions.

    Irish life must have changed a lot, good to hear


  • #51
    Apollinaris
    Registered Users, Registered Users 2 Posts: 114 ✭✭Apollinaris


    Mad_maxx wrote: »
    Irish life must have changed a lot, good to hear

    Ha, that was exactly what I thought of! They previously managed our pension funds and they were a shower. Also to switch fund this quick during a crisis that’s impressive!


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  • #52
    Mad_maxx
    Registered Users, Registered Users 2 Posts: 13,503 ✭✭✭✭Mad_maxx


    Apollinaris wrote: »
    Ha, that was exactly what I thought of! They previously managed our pension funds and they were a shower. Also to switch fund this quick during a crisis that’s impressive!

    Charging hefty fees is all they were ever good for, perhaps they've upped their game which is welcome


  • #53
    Benzino
    Registered Users, Registered Users 2 Posts: 3,816 ✭✭✭Benzino


    Jim2007 wrote: »
    A pension is about the long term, not what happens in the next five years. If you are young and in good health this should not be a problem. Best thing you can do is stop checking.

    I guess we should still be putting money into our pensions right?


  • #54
    Diairist
    Registered Users, Registered Users 2 Posts: 367 ✭✭Diairist


    Not yet, I suggest. Let the market (and madness) kill a few more weaklings before seeing if the herd is healthy.


  • #55
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,837 Mod ✭✭✭✭Jim2007


    Benzino wrote: »
    I guess we should still be putting money into our pensions right?

    Provide you portfolio has an asset allocation suitable to your lifestyle. Yes.


  • #56
    RedRochey
    Registered Users, Registered Users 2 Posts: 1,298 ✭✭✭RedRochey


    I work for a financial advisor, no one in the world "saw" this coming, we set up portfolios for the long term, 5+ years

    A lot of talk of market timing here, which is one way screw yourself over both financially and mentally


  • #57
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,837 Mod ✭✭✭✭Jim2007


    Diairist wrote: »
    Not yet, I suggest. Let the market (and madness) kill a few more weaklings before seeing if the herd is healthy.

    You do that, wait until they ring the bell. Why follow a proven strategy when you only have to wait for them to ring the bell.

    I on the other hand have not got a clue what the markets will do next week, next month or next year, nor do I care. What I do know is that since I started investing in the middle of the oil crisis in 1973, attention to asset allocation and dollar cost averaging on quality stocks in the early days and later funds and ETFs when they came along results in an average annual return of 12% - 13%, which means I doubled my money about once every five years or so. And retired very early.


  • #58
    Sleeper12
    Registered Users, Registered Users 2 Posts: 17,299 ✭✭✭✭Sleeper12


    lukegriffen wrote:
    i'm a bit annoyed with myself that i didn't see this coming, it's obvious in hindsight, but i'm also wondering why my financial advisor didn't drop me an email and recommend that I switch to bonds/cash for a few months .


    Hindsight is a wonderful thing. Do you not think if was that obvious that our front line health care workers would have a massive supply of protective clothing? Do you not think that we would have started the shut down earlier & stopped all flights into Ireland?

    Definitely wasn't obvious 7 or 8 weeks ago. Many people couldn't see it 4 weeks ago. There was shock 2 weeks ago when the shut down was announced


  • #59
    Diairist
    Registered Users, Registered Users 2 Posts: 367 ✭✭Diairist


    Jeff Bezos circa 11th Feb. sold Amazon stock, nearly $4.1 billion worth.


    "Hell is coming,” the billionaire hedge fund manager Bill Ackman told millions of Americans in a 28-minute near-hysterical TV interview 10 days ago. Bill Ackman had quietly placed a bet that stock markets would tank. Those bets made his hedge fund $2.6bn (£2.2bn) – a near-10,000% return on his $27m stake.


  • #60
    RedRochey
    Registered Users, Registered Users 2 Posts: 1,298 ✭✭✭RedRochey


    Diairist wrote: »
    Jeff Bezos circa 11th Feb. sold Amazon stock, nearly $4.1 billion worth.


    "Hell is coming,” the billionaire hedge fund manager Bill Ackman told millions of Americans in a 28-minute near-hysterical TV interview 10 days ago. Bill Ackman had quietly placed a bet that stock markets would tank. Those bets made his hedge fund $2.6bn (£2.2bn) – a near-10,000% return on his $27m stake.

    Those bets were actually hedges against other bets, it wasn't his intention to make that much profit from them

    Sh*t had already hit the fan 10 days ago


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  • #61
    Rocko
    Registered Users, Registered Users 2 Posts: 211 ✭✭Rocko


    Bezos sold 34bn amazon stock in February

    https://www.theguardian.com/business/2020/mar/27/jeff-bezos-sold-34bn-of-amazon-stock-just-before-covid-19-collapse


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