Pensions Management
Did Your Pension Return 20% Plus Last Year?
By:
Stephen Todd
In terms of pensions management, your location in
the world doesn’t matter, nor does the type of pension you have - a
sipps, a self-invested personal scheme, or a self-administered
scheme.
What you are interested in is that when you
become a pensioner, your pension’s management has performed to
provide you with a comfortable retirement and does not give you a
short fall on your expected cash!
Is a 20% Return Realistic with Low Risk?
Here we want to look at how a + 20% annual return
is achievable and drawdowns can be kept to manageable levels.
Pensions Management Returns
Firstly, the best way to trade the markets is
without emotion and this means using a technical based approach to
pensions management. The reasons for this are:
1. A technical approach to pensions management
takes the emotion out of trading and allows a disciplined trading
plan, which can liquidate losers quickly and run the big profitable
trends.
2. If the technical system is based upon holding
onto the longer term trends the commission impact on the pension’s
income is less than on a shorter term strategy. This means there is
more money going to you and less in fund manager’s fees.
3. Even a good technical system will not hold
losing trades.
Losses will always occur for any fund manager no
matter how good they are, but the most important point is that they
are manageable, and a good technical method can achieve this.
Pensions Management - The Risk
The risks in any form of investing are always
there, but there is a misconception about how to assess the risk.
Most investors look at the location of their pension, and see this
as the main investment criteria. For example:
The view may be that if a fund manager is
investing in Far East tiger economies, then this is more risky than
say investing in UK blue chip equities.
This is only part of the equation though. If a
fund manager is actively managing the pension or investment, you
need to look at a fund manager’s money management strategy.
A good money management strategy in a volatile
area can reduce risk; on the other hand, a poor money management
strategy in a less volatile area can increase risk.
Pensions Management - Balancing Risk and Reward
A good pensions fund manager can achieve above
average performance while keeping risk at manageable levels.
Here are some points you should consider when
picking a pension manager:
1. When looking for a pensions fund manager make
sure that you take the time to find out the performance of all the
funds under their management, not just the good ones!
2. Ask a fund manager to explain their strategy,
so you know the way they manage and control the risk of your funds.
3. Get to know them and see what their approach
is and their reaction to your questions.
You are trusting them with your retirement funds
- so make sure you are comfortable with everything about them.
Is a 20% Return Achievable?
Yes, it is - we know because we have produced
gains like these for clients and so have other pensions management
groups.
Use the above as a guide when shopping around for
a manager and take your time.
You work hard, when it comes to retiring and
taking your pension you want to make sure your pension can provide
you with a happy and comfortable retirement.
To learn more about using Gann methods to improve
your
pensions
and investments performance please visit our web site:
http://www.gann.co.uk