your strategic asset allocation might be wrong

Will your lifestyle fund destroy your future wealth?

Lifestyle pension funds, sometimes called Lifecycle or Target Date Funds, are totally in vogue. They appear to be the weapon of choice for pension providers and advisers alike. I did a quick Google search for “lifestyle pension funds” and found 2,910,000 matching results. In the US, Vanguard estimate that more than half of all defined contribution pensions are now lifestyle funds.

But there’s an inherent flaw in the way strategic asset allocation is determined for these funds. And it could be destroying your wealth.

Continue reading
2 what does an ifa do

How to Make Sure Your Financial Adviser is Doing What You Need

Swap your phone line to another service provider and you know exactly what you're going to get before you sign any contracts. The same when you're booking a flight. Sure, there are some variables like whether it's a flexible ticket, or business class but there's no question about whether the airline will get you from A to B.

But what about Independent Financial Advisers? What should they be doing for you? That's a different question.

Continue reading
What does Brexit mean?

What does Brexit mean?

The country has voted and we are to leave the EU. The likely effect is to see an initial drop in most asset classes. The pound has dropped overnight and may keep doing so in the immediate term.

This vote, and David Cameron’s impending resignation means that we are entering a period of significant political and economic uncertainty. This is likely to create additional volatility in markets generally, particularly in the short term. Continue reading

how asset allocation strategy needs to change over time

How to Update Your Asset Allocation Strategy Over Time

Deciding how to invest your pension savings can be a pretty onerous task. There’s a lot of technical detail to grasp and a good number of decisions to make. Once you’ve made those decisions it’s tempting to sit back, put the matter to the back of your mind and consider the job done. But taking a fit and forget approach to your asset allocation strategy can dangerous.

Allocation of funds amongst different asset classes needs to change as you get older and failing to make the necessary adjustments could result in your retirement income being decimated at the 11th hour as markets rise and fall. Continue reading

1 2 3 39