When should i transfer into Cash / Bond fund in an AVC

[pumi63]

hello ,

I am around 5.5 ( 61.5 years old ) years from retirement at 67 and i have an AVC with the Widow . Currently invested in Shariah Fund but this has lost a few thousands since Trump started making adjustments to global stocks .

Can anybody suggest when i should move to the safer Lifestyle / Cash option before retiring please as recommended in the latest postal information from Royal Mail this week ?

Is it possible to do a section of Scotty Widow Funds and AVC in general here given that there are around 7000 people invested in the Widow and who knows how many more with the previous pension plan

Thank you

Pum

Thank you .

[Hyrrokkin]

hello ,

I am around 5.5 ( 61.5 years old ) years from retirement at 67 and i have an AVC with the Widow . Currently invested in Shariah Fund but this has lost a few thousands since Trump started making adjustments to global stocks .

Can anybody suggest when i should move to the safer Lifestyle / Cash option before retiring please as recommended in the latest postal information from Royal Mail this week ?

Is it possible to do a section of Scotty Widow Funds and AVC in general here given that there are around 7000 people invested in the Widow and who knows how many more with the previous pension plan

Thank you

Pum

Thank you .

Where did you see that may i ask

[Jaggs]

There is no simple or straight forward answer to this as different people might want to use their AVCs in different ways. If you want to take it as a lump sum at retirement you obviously will want it mostly in cash so gradually move you're shariah fund into the relevant lifestyle fund as you get nearer retirement maybe.

[NorthernBoy]

No one can give you an answer to your question, as it depends on your attitude to risk

The fund you are in is higher risk and has returned some impressive growth figures over the years. However recently it has not been performing as well

I came out of this fund about a year ago and moved into the cash fund as I am taking my pension this year. I was happy with the value and didn’t want to risk it dropping.

Personally if I had 5 years to go I would stay in this fund as I believe tech will do well over the longer term.

Another option could be to split your fund with say half going into cash/safe assets and the other half staying in the fund.

No right or wrong answer you need to understand where your risk tolerance level is at.

[RobertT]

If you're in the RMPP lifestyle choice with Flexiplan and/or Bonusplan, they automatically start moving towards bonds and then cash 8 years before your chosen retirement date.
But the AVC via the RMCPP actually starts to move your money 15 years beforehand.

So if you want the decisions made for you, then chose the lifestyle option.

Otherwise as others have already said, it's down to how you think markets will perform(by doing your research), risk profile and personal preference.

Some might want to go all out Shariah until they take it, while others wouldn't even go near Shariah in the first place. The same goes for any other fund.
It's all down to choice at the end of the day!

[Wullie10]

The beauty of drawdown is you can take what you like , when you like. If a fund was to collapse say a year before your planned retirement you can always leave it until it recovers. ( even add to it if you prefer ) . Of course this is for pensions other than your standard work pension. An AVC can be transferred.

[Decky Boy]

I think the answer to your question might be... "maybe now" !

I've a hunch the sh*t is about to hit the fan... American markets are way way overpriced in my opinion and are due a substantial correction. Technical analysis suggests this.

I've been in CDs and Money Market Funds for a year now as my NRA 60 benefits are fairly imminent. Be a shame to take a 30% hit only a few months out from the magic 60 but I've always been a fairly cautious barsteward.

The above is opinion and absolutely not financial advice.

[pumi63]

Hello everybody ,

Sorry for the late reply , and a big thank you to all for your responses . I will leave it in the Shariah and transfer it into balanced followed by cautious funds .

I wondered how does the global turmoil , war scenario , Trump tariffs etc. affect Shariah funds , and the other funds ?

BTW , the figure of approx. 7000 employees invested in AVC , was from the latest communication from RM about the Collective Pension Fund .

Thank you ,

Dillon

[Decky Boy]

Everything effects everything. The Sharia Law Fund (a fund in which Muslims can safely invest in without compromising the beliefs and their faith) is made up of a number of companies who's shares we buy whenever we invest. These shares (also known as stocks or securities) are heavily weighted towards NASDAQ and S&P companies which are super prone to market volatility.

During the good times this gives good gains but when the markets aren't happy the drops can be far steeper than the gains and our pension pots reflect this drop ! Over time the stock market generally rises but history and technical analysis can highlight cycles and trends and if self investing we must monitor and position ourselves on the "right" side of these trends.
Sometimes money preservation is preferable to chasing growth.

I looked at the Shariah Fund many years ago but as someone who wasn't a follower of Islam I felt I couldn't invest. The Growth and Balanced Funds were good to me... and now my chenga chenga is sitting in the Cash Fund.

If pension investing is a mystery to you there is plenty of educational material out there, free and available to you. Investing in oneself is the most important investment any one of us can make ?

The above IS NOT investment advice. It is however, the ramblings of a crusty, old and tired, postie.