Some years ago I decided to move a couple of pensions into a self invested pension scheme (SIPP)
I’d got to know a financial consultant who had shown me a “really good” investment opportunity which would pay 8% per annum for 5 years on the pot I had.
Since I’d been made redundant shortly before and had stopped paying into them and since they had been being paid into by me ex-employers this seemed like a good idea
And so it seemed to be - for the first 3 years at least
Then the company I’d invested in went bust
The lengthy process - most of which I don’t understand - to try and get at least the lump sum I invested back and possibly the interest accrued began.
It looks like I probably will get that back through a government compensation scheme but the interest it should have earned looks less likely.
Why am I telling you this?
Simply because it’s yet more evidence in my mind that the only secure investment you can really make is in yourself.
It’s been my experience that you can’t really rely on an employer.
They have their own interests to look after first and if a recession comes along or their industry is changed overnight by technology as happens every day now
Your job and career can disappear just as quickly.
Similarly traditional types of investment like pensions or savings carry the risk of vanishing
But if you Invest in skills, proven systems and education that are geared to where things are going
Instead of where they have been
You can protect yourself against these “Slings and arrows of outrageous fortune” (Hamlet)
That phrase ends with “And by opposing, end them”
He knew a thing or two did old Shakespeare!
So do my own mentors at SFM and DEA
They’ve taught me that there are far better investments to be made these days
Which is why I’m not losing sleep over the potential loss of those pensions
8% is a very good ROI by traditional standards but it’s seriously crap in the internet marketing world
If I do get that money back - and I’m 55 now so I can draw down on it - a lot of it will go into my marketing budget
If I don’t?
C’est la vie
Cheers!
Dave
