Money Makeover - Decisions decisions

Gordon Gekko said:

You’re right.

It’s not madness, it’s idiocy.

Especially when one can own property via a pension. That is, if one prefers higher risk massively concentrated bets on a single asset class in a single geography.

Most of us have decent exposure to Irish property by virtue of owning our own homes.

Some of us have additional exposure to Irish property via an investment property.

It is madness and idiocy to ignore pension funding and lob further money into the same asset class in the same geography.

It’s as mad as owning a load of Diageo shares to fund one’s retirement, generating some cash, and buying more Diageo shares.

Probably a decent asset to hold, but maybe not, and concentration risk is a real thing.

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Bronte said:

You'll be delighted with this trend then:

Pensions surpluses to be targeted

Listed companies could be allowed to extract as much as £50 billion from their traditional staff pension schemes if the government goes ahead with a radical re

www.thetimes.co.uk

Listed companies could be allowed to extract as much as £50 billion from their traditional staff pension schemes if the government goes ahead with a radical reform floated in the Mansion House speech last month.

The dramatic shift in gilt yields in the past two years has catapulted many traditional workplace pension schemes from serious deficit into healthy surplus, raising hopes among some companies that they might be able to access the excess assets in them.

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