Where to move small pension pot

[Amboseli]

I have a number of very low value pensions, adding up to just under £30k in total.

I feel the charges on one in particular are very high and think I should move it but it seems to have done fairly well.

I'm not sure what to do and if I do move it where to?

I feel I can afford to take higher risks as I'm not going to need the money when I retire so I just want to invest it in the best place to get the best returns and probably just pass it onto the children when I pop my clogs.

Thank you!

Pension Bee

F

Pension Bee

@Badoukas @Dindundundundeeer

I have looked at pension bee but you still have to choose how to actually invest it.

I've read that putting the whole lot into a cheap s&p 500 tracker is the easiest way to get good returns which I'm feeling tempted to do as I just want to invest it and leave it there.

Have you considered Vanguard Lifestrategy funds?

[quote Amboseli]**@Badoukas* @Dindundundundeeer*

I have looked at pension bee but you still have to choose how to actually invest it.

I've read that putting the whole lot into a cheap s&p 500 tracker is the easiest way to get good returns which I'm feeling tempted to do as I just want to invest it and leave it there.[/quote]
Except the exchange rate risk could wipe out your profits. Better to get a global equity fund, not just one area.

OP states long term investment, so I'm unsure that concerned about short term FX fluctuations.

If you're comfortable with high risk, I'd go heavy on north American tech, something like Polar Capital Technology fund. I use this for a Junior SIPP for my DD, as it's long term (another 10 years under my watch, and another ~40 under hers).

I've invested in S&P 500 for a JISA fund which will pass over to her in 7 years.

@BasicDad I have decided to put it into vanguard's US equity index which includes small and medium caps as well as the big names. Their charges are very low.

I like polar capital technology but I wanted to keep the charges as low as possible.

I want to move a couple of other pensions too and have been looking at a robotics and automation fund and also an AI fund. I will be extremely tech heavy but in the long term I think they should do ok.

@Badoukas thank you, I did look at the lifestrategy 100 but felt there was too much UK exposure and I don't have much confidence in the UK's prospects for the foreseeable future unfortunately.

@BasicDad

OP states long term investment, so I'm unsure that concerned about short term FX fluctuations.

If you're comfortable with high risk, I'd go heavy on north American tech, something like Polar Capital Technology fund. I use this for a Junior SIPP for my DD, as it's long term (another 10 years under my watch, and another ~40 under hers).

I've invested in S&P 500 for a JISA fund which will pass over to her in 7 years.

If you look at long term trends FX is more of an issue. Just US has certainly been an issue for 10 year + periods. Perhaps an enthusiastic amateur doesn’t like the facts, but FX is an issue when you are spending in a different currency. Waiting for 10+ years for a correction is an issue when retiring. Diversification would also allow some other structural benefits that perhaps you’re unaware of…

@Dindundundundeeer thank you for your input. I do understand the FX risk re investing in non GBP.

It's a difficult one as even though I'd like to invest in the UK, with the brexit and pandemic fall out, I just can't see how UK returns will beat the US taking FX into account.

I'm sure individual UK companies will do well but I don't have the time to do the research so prefer funds.

Could recommend a UK fund/sector?

I have read that whilst record numbers of people in the UK have been investing during the pandemic, they are investing mostly in global funds which are highly weighted towards the US. In fact they have been taking money out of UK equities to invest globally. It makes sense as the UK is in a complete economic mess.

Global funds - totally.

US only - madness to leave Asia, Emerging Mkts, Europe, out

MSCI tracking is massively US weighted, but more balanced than US only. If the US ‘corrects’ or stagnates you’ll have options. All those territories will out perform the US at some point too. The opportunity cost of ‘just’ the US is huge.

@Dindundundundeeer thanks for your input. This pension pot is a small portion of my overall investments. I do have investments in Asia Europe EM etc as well as property.

However it is weighted more towards the US and I know I should diversify more. I'm just very undecided about which funds to invest in.

Op sounds like a good call.

It's said that the s and p is already incredibly diversified because its covering tech, property, oil and s and p companies are usually global as well so how much more diversity do you need!!