Arbusers

Alright Guys can we share opinions on this.

would you choose the pension Insurance over buying stocks and shares yourself?
I started this pension insurance over 3 years now and the idea is to deposit 2000 every month for 30 years and afterwards i will be getting 13000 monthly for another 15 years.

Is this a wise deal because so far i have deposited about 54000 and looking at the account now, it has only grown by 1 percent after 3 years. On the otherhand, i have deposit 650000 on Etoro buying shares myself over the past 4 months and it has grown by 14 percent.

Am i missing something?

if you made good money for betting and then maybe moved onto stocks and real estate etc, then why would you bother at all with some pension? can't live longer than 60 with all this punting anyway

I will never choose to put my money into pension insurance for multiple reasons.
Do you expected to leave enough long to benefit from the money stored into the fund?
Basically your money will go to your grandkids, so it's better idea to relocated the money into sp500 tracker fund.
You don't need much money when you are old, you won't have your mid age expenses.
The chance this pension fund to be invested into declining stocks are big enough to consider self investment.

In my case I will create separate dividend portfolio and move all pension money into the dividend stocks - compounding will do the rest.
I don't expect to live past the 70, so for me pension is bullshit option.

But in the end of the day, it's your life and money and you have different vision and life expectation that most of us.
Also I will consider moving the money out of Etoro, in my opinion they are too young and not very time proven to store big stacks, only if you trying to benefit from their copy trade program.

Thanks Pro,

i was just trying to diverse my option, pension insurance as the name suggest is also an insurance and they pay out some amount if things turn bad. Any i have more money on my hands and i hate to keep all in one place. Thanks for the advice, was just wondering why it wasnt going fast as Etoro

jagas wrote: ↑

Tue Jan 17, 2023 2:15 pm

Am i missing something?

Yes. Even if you live in a Western country with strong and not corroded institutions, pension funds have 2 major problems.
1st. Nasty fees.
2nd. Influence from Politicians.
Even if the manager of the fund is Warren Buffet, these 2 problems will not allow the fund to flourish the way it should be.

Ignorant people speak about Robert Kiyosaki. People with decent knowledge would speak about Joel Greenblatt's Little Book that Beats the Market. If you are young, say under 40, you have a lot of time to enjoy pension funds, but start early.
I might write a recommendation under the Books to Read thread.