Self-Directed Pensions

Hi everyone,

When I quit my previous job in summer 2011, I took my pension out in form of a buyout bond with some 100kE in it. I setup with Standard Life.

I recently decided to take my pension out of the fund suggested by the broker 3 years ago. The fund more or less delivered what it said it will do. However, the strategy was too conservative and the returns too low for the particular stage of my life / investment cycle. Needless to say the dear robbing government and the fund managers took their toll too.

I now have options to invest in other funds with the same provider (Standard Life) and what is being suggested to me is to take European Small Companies and Global Small Companies funds. I also have the option to setup a brokerage account with Stocktrade with the same provider and have access to worldwide stock markets.

I am not entirely illiterate (understand stocks, bunds, funds, understand currency exposures) but my previous attempts at stock investment weren't exactly glimmering examples of success (including taking the advice in 2011 to be conservative against my instinct to go in risky equity).

I am most likely going to split my investment into Standard Life funds and self-directed (50/50) after staying in cash for the next few months as it would appear that the markets are in the middle of correction.

My goal would be to make the 120kE into 500kE over the period of next 20-25 years without additional contributions (not possible to make into Buyout bond and I have other investments to complement this pension).

The question for the esteemed audience relates to managing the self-directed part. There is a jungle out there and some sort of guidance is beneficial.

What would you suggest in this respect? Which websites are worth following when making the investment decisions? Motley Fool and the likes?

Thanks,

When looking at expected returns on stocks:

1. Market - what is the equity premium
2. Company size - small cap premium - small cap v large cap
3. Relative price - is there a value premium
4. Profitability - is there a profitability premium - high profit v low profit

Good luck to you doing better than companies who put millions into research, analysis and designing sophisticated algorithms to help them filter out thousands and thousands of stocks?


Steven
www.bluewaterfp.ie

Obviously, picking individual stocks and timing purchasing / selling is beyond the retail investor.

However, I am questioning the limited choice of Standard Life funds and in that context assume that the self-directed option will give me access to a wider range of funds and markets.