Soldato
I don't overthink it. Most of it in the S & P 500 and don't think about it. My fund is up tens of thousands just in the last few months.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
Ride that bull.
Yeah Im mostly in world ex uk now as well but in the process of moving my remaining bond funds into equities. Have to decide on whether to include EM in that or not.
The reason equity funds are outperforming these conservative target date ones, is that they are higher risk and have coincided with an extended period of low interest rates and a boom in equities.
It's not the case that these other funds are intrinsically 'better'
Guessing this doesn't take into account fees, I guess they'd be ready to add in.1) I set this up in Excel but I'm guessing this work in Google Docs as well. Below are the headings and the formulas. The key ones ae you opening balance and the Return rate, the return rate is anchored and will be the key determinate on the forecast The formula takes the current subtotal * it by the annual return rate (given as 7% in this example) divided by 12 so you get the incremental growth monthly.
The sub total for the next month is the Total Pot from the month before + the new contribution.
2) Once you have setup the first two rows drag it down for as far out as you want to. Just remember this showing the pension forecast on a monthly basis so you might want to add a filter to the headings so you can view it by month (maybe in your birth month).
The are some optional columns I've added, you don't need them but I would highly recommend the third point below:
i) in column B you can add the age you will be in your birth month, handy for a quick reference so you can see how old you will be without having to think about it.
ii) In column E you might want to add in the effect of annual pay rises on your contributions. When I set mine up I used 1.5%, it doesn't make a big difference but it makes it more accurate.
iii) Column I is used for noting the actual valuation of my pension so I can track it's performance against my forecast. That way if you pension is lagging you might be able to make some changes to where you money is being invested (if you pension provider/employer allows it) or up your contributions.
Soldato
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Soldato
Aye; SP500 up ~10% in less than 3 months YTD but suspect that will equalise over the entire year to hopefully around ~12% but I'll happily take higher 
Soldato
Absolutely.Aye; SP500 up ~10% in less than 3 months YTD but suspect that will equalise over the entire year to hopefully around ~12% but I'll happily take higher
I see more investment banks, and bankers in general saying the rally has further to go, buy in now, dont stop etc. I am reminded of the recent bottoms of the market when they all said sell this is crashing to the floor. Of course the opposite happened and they were buying all the time. Inverse correlation. I still drip in regardless but kinda interesting.
Soldato
It is. The amazing thing is it is only the usual 7 companies driving it, if the other ones start doing well then who knows where things go. The S & P historically does pretty well in an election year too apparently.
I have no doubts it will go down again, but when it inevitably jumps up again higher I want to be in it.
Soldato
The FOMO is strong....
Soldato
You can keep adding to it your want it more detailed and the more complicated you make it the more likely it will have errors which invalidates the whole thing. This is more of a forecast and a tracker tool.
Soldato
Compound Interest Calculator
Download a Compound Interest Calculator for Excel or use the online calculator for compound interest problems related to savings or loans.
www.vertex42.com
If anyone wants a spreadsheet this has a pretty handy one you can download to plug your numbers in.
Caporegime
Compound Interest Calculator
Download a Compound Interest Calculator for Excel or use the online calculator for compound interest problems related to savings or loans.
If anyone wants a spreadsheet this has a pretty handy one you can download to plug your numbers in.
They have a pension / retirement Google Sheet too.
Google Sheets: Sign-in
Access Google Sheets with a personal Google account or Google Workspace account (for business use).
docs.google.com
I have an old Sheet I found on Reddit a couple of years ago that I use, but I might spend some time modifying that Vertex24 one.
Says view only for me, can't change anything.
Associate
How are you managing your pension pots? I have a small pension being managed by SJP at a cost of 2% per year. Granted the pot is low but surely there has to be a cheaper way to manage it myself?
Soldato
- Joined
- 13 Sep 2005
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2%?? That can't be right.
Hope you've not been doing that a long time. Just open a cheap SIPP.
Soldato
When looking at a global fund, the USA is like 60% of the world. However the US is only 25% of the global GDP.
China is like 17% of global GDP, but only 2.5% of an all world index.
Basically companies listed in the USA, operate in china, like apple for example.
You are already invested in emerging markets.
Editing the geographical data of funds/ETF to reflect the real world might be useful rather than going by where each company is listed.
Soldato
Oh interesting I hadn't seen that before. I might have to migrate over to it then, cheers.