MONEY
Y
ou are encouraged to take on
more risk in the early stages
of your pension in order
to maximise growth, safe in the
knowledge that you will have 20 or
so years to make back any losses. In
addition, the fact you will be paying
in regular amounts every month
means that when markets fall, you
will be buying in when they are at
their cheapest.
As with everything though, it is
possible to take this risk/reward
trade-off too far. This appears to be
the case with “John”, a 28-year-old
marketing manager for a financial
services firm, who has put his entire
pension into a single fund. It is not
just any fund either – he has chosen
to leave his retirement at the mercy
of JPM Natural Resources, a fund
that has made double-digit losses in
every one of the past four calendar
years, has fallen 8.8 per cent in the
first six months of 2015 and is down
62.65 per cent since the start of 2011.
BIGGER RISKS
PUTTING IT ALL
ON
BLACK
Anthony Luzio faces the uphill task of
explaining in only 1,000 words just ݡ