The "cash" funds will probably be managed bond holdings mostly. You've still been unlucky, I've had a bit in a bond fund for the last year or so and it's made about 20% as bond prices recovered after the banking crisis - if you've been hold since the second half of 2008 you'll have caught the crash beforehand.
The problem IMO is IFAs. The basic advice to cut risk near retirement is sound and standard, but they don't eat unless they "churn" investments into managed funds that cahrge you 1%-2% a year and pay commission. I have learned too late never, ever to use a commission based adviser, and not to pick stocks, but to buy the markets - the charges are much lower and no more than 20% of fund managers beat the market anyway (a slight over-simplification but basically true).
I am in a very similar position to Zero, except I haven't retired yet - final salary scheme being closed to further accruals, might as well be a 20% pay cut if you value the effect on the pension.
I am very interested in Zero's prediction - timing markets is also notoriously difficult (i.e. difficult to beat just buying and holding). I know at least three people who have gone into cash or near cash in the last few weeks for fear of a turn. The difference between them and me is that they have all the dosh they need, and have only to avoid losing - I need to take some risk to fill the hole caused by the depredations of the last 13 years.
Far too much and too complicated advice surrounds investment decisions. If you want a clear steer on how to make them, and some important facts that an IFA will never give you, I can thoroughly recommend Smarter Investing, a book by Tim Hale. It would be hard not to get your money's worth at about a tenner on Amazon. Don't take my word, read the reviews.
Last edited by: Manatee on Tue 13 Apr 10 at 20:09
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