Retirement Investment Optimisation – My New Portfolio

My employer and I put money into a pre-tax retirement account. The retirement company then invests it until my official retirement age. At that age, I can use the money to purchase a monthly payment for the rest of my life.

The retirement account invests your money according to two choices. The first decision is to let the management company invest your money, or to invest in an allocation of your choice. The second decision is either how much risk you want to take (when they invest for you), or which funds to invest in (when you invest).

If you don’t make a decision, the default is the management company investing the money for you in a neutral risk profile.

The funds they invest in with the neutral profile are:

  • NN First Class Return Fund I – N
  • NN Liability Matching Fund (M)
  • NN Liability Matching Fund (XL)

The first thing I did was switching to the offensive profile, where they invest in just one fund for you:

  • NN First Class Return Fund I – N

The problem with this fund is that even though at first sight the TER or total expense ratio is not that high (0.40%) they invest in a random set of other funds. To me it seems there’s no logic behind this.

Read the full article here.

Reageren op dit bericht

Deze website gebruikt Akismet om spam te verminderen. Bekijk hoe je reactie-gegevens worden verwerkt.