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Best Investment for Pensions considering the current market

Last post Fri, Mar 13 2009, 5:44 PM by maxsteam. 1 replies.
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  •  Fri, Mar 13 2009, 11:02 AM

    Best Investment for Pensions considering the current market

    What is the best investment for someone who can only afford to pay in £50 a month towards a pension? I'm 43 this year so need to get the best deal without the chance of losing my money if the banks or pension companies collapse.
    • Post Points: 20
  •  Fri, Mar 13 2009, 5:44 PM

    Re: Best Investment for Pensions considering the current market

    Unfortunately there is no "best deal" with top levels of safety. You need to decide how much risk you are willing to take. A low risk approach would be to invest in a fund that concentrates on government gilts. The returns will be low but the fund should be safe. A middle risk approach would be to invest in a fund that concentrates on larger UK companies. A high risk approach would be to invest in a fund that invests in recovery situations or emerging markets.

    The risk is not just of the company that you invest with going bust but, to reduce that particular risk, I personally like the transparency of unit trust pensions and investment trust pensions. I also feel that risks are reduced if you deal direct rather than through a financial advisor. If you, for example, invest in a unit trust and the unit trust provider goes bust, you still are entitled to the full value of whatever your money was invested in.

    • Post Points: 5