EK - Provident Fund current recommendations

[lospilotos]

Just had a very disappointing look at my Provident Fund. Current value less than contribution.

For us that don´t have enough days off to squeeze in a Mondial meeting, what are they recommending nowadays? 40-ies, not a big risk taker...

[Vorsicht]

And there you have it. Why most people retire with insufficient funds for a comfortable retirement.

Too busy to go and see (or too cheap to pay for) a financial advisor. No problem, I'll get my financial advice through Pprune. What could possibly go wrong:ugh:

[Dropp the Pilot]

Whatever you do, just stay in the "Provident" fund, which provides so ably for the poor fund managers in the Isles.

You are giving them about $50,000 over your time at Emirates for which you received nothing in return.

Have a look at the pretty picture and place your net returns way, way below the green line.

http://www.sec.gov/investor/alerts/ib_fees_expenses.pdf

I may have said this before.

[lospilotos]

And there you have it. Why most people retire with insufficient funds for a comfortable retirement.

Too busy to go and see (or too cheap to pay for) a financial advisor. No problem, I'll get my financial advice through Pprune. What could possibly go wrong:ugh:

Just interested in hearing what advice people that have been to Mondial lately are getting.

Whatever you do, just stay in the "Provident" fund, which provides so ably for the poor fund managers in the Isles.

You are giving them about $50,000 over your time at Emirates for which you received nothing in return.

Have a look at the pretty picture and place your net returns way, way below the green line.

http://www.sec.gov/investor/alerts/ib_fees_expenses.pdf

I may have said this before.

Yes you have and you are making a good point. I won´t be putting any money into the "C"-fund that´s for sure.

Can anyone recommend this guy: http://www.emiratescapitalassetmanagement.com/ (http://www.emiratescapitalassetmanagement.com/)

[CAYNINE]

....yes I should be able to buy a nice car with my PF when I retire.... it performs so badly

[PGA]

For those wishing to retire in the Euro zone the new Euro denominated fund isn't a bad option, especially with the current exchange rate.

My total contributions are also a lot higher then my current total sum, however if you have ever put money in your C fund and subsequently withdraw it, it still shows up under total contributions, therefore discrepancies can build up.

[harry the cod]

PGA

Correct. I withdrew all of my C fund several years ago to assist with a deposit for a property. This amount is still included in the total contributions however, my total value including what I sold exceeds the total valuation. Several points;

lospilotos

Firstly, Dropp is right in that any managed fund will have management fees. That's a given and these can vary hugely. If you want to avoid these, there are several vehicles to do so including tracker funds and ETF's. You will need to do your own research. You could also trade individual shares online but this requires knowledge and an interest in stocks and shares. If you can't even be bothered getting a free consultation, I certainly do not recommend this avenue.

The second point is that most of us have neither the time, knowledge or inclination to spend spare time researching these facts. Managed funds do that for us, we 'pay' for that privilege in fees. Yes, over many years they can add up. However, the provident fund offers entry into managed funds with reduced fees. Emirates bulk buys and receives discounted fees, given back to us in the form of rebates. These are visible in your statements. A & B fund choice is limited. It's designed to cover the EOS benefit and avoid the Company paying out on that. The C fund, whilst also limited, does offer considerably more choice and options regarding risk. Personally, I like it and invest into various funds, all apart from one which has done well. Which leads me to the third point.

Shares can go down as well as up! The timing of this post is ironic. The markets are down considerably over the last week or so, the FTSE alone having lost 15% in 7 days. Short term views are dangerous. Volatility is actually what you want if you invest in monthly contributions, i.e. dollar cost averaging. When units are cheap, you buy more of them. As the market recovers, which it inevitably will, the value of you funds rises exponentially. Brasil is heading for recession. Talk is that we may be heading for another crash over the next 6-12 months which could last 3-4 years. If so, hold what you have (unless you've made money) and buy more units while they're cheap. 3-4 years of buying cheap will bring healthy rewards later.

Finally, don't accept my advice or anyone else's on this forum as gospel. We all have our opinions and is often based on personal circumstances and personal goals. I can not over emphasise how important it is to arrange a visit with Mondial. There is no excuse. It's free, will take one hour and requires a phone call to initiate. They will discuss what assets you have, what your attitude to risk is and what your retirement plans are. They will offer options with a view to meeting those expectations or putting a touch of reality on those dreams. You may be shocked how much you need to maintain even a basic standard of living in retirement. They get paid a fixed fee by Emirates for each employee visit so they have no financial gain based on what funds they choose from within the PF. That, more than anything else, is why I use them and the C fund. It's also a great form of forced saving.

Don't put if off any longer. laziness and ignorance will not be an excuse in later life when you're stuck eating bread and jam!

Harry

[Dune]

"World" equity markets have struggled over the past year due to poor performance in Europe and the Far East. The EGPS core A/B equity funds are mandated to be invested in all regions.

The U.S has outperformed but it is not possible to target just U.S. equities in the EGPS A/B accounts.

-$DJW is the Dow Jones Global Index
-$WLSH is the U.S. Wilshire 5000 total market Index


http://i64.tinypic.com/309sshz.jpg

Unfortunately that is the way it is. The C fund offers more specific options but you are generally better off using a low cost broker and low expense ETFs given the current low return environment.

[shakealeg]

Holy smokes Harry. Thought I'd missed a buying oportunity there. FTSE down 15% this week? Last check it was slightly up on the week, or flattish before the rate rise. You aren't trying to cause a stampede are you?

[harry the cod]

My boob, typo, meant 5%. Was around 6400 and dropped to under 5900 within 7 working days, 5 days of continuous falls. Now up to around 6100.... :O

Harry

[Fack5]

And that's why anyone seeking financial advice on a pilots' rumour site needs his head read. Stick to your day job, Harry.

[harry the cod]

Will do, thanks Fack. :\

Harry

ps....more of a night job rather than day :sad:

[lospilotos]

Point taken guys... Mondial number is on speed dial now waiting for the Jan roster....