Avc Investment Decision

Delta2113

My company just froze our DB plan. I now have 19 years left to retirement and have to decide on how to invest in the DC plan which i am now joining.

I intend to do avc's as well. These will be invested in the same funds and proportions as my normal contributions.

Total contribution including employer and employee will be 18%.

Should I put all in equities? Cash or managed fund?

What's a sensible % to make for each?

Any help appreciated.

Stopitwillya

Delta2113 wrote: »

My company just froze our DB plan. I now have 19 years left to retirement and have to decide on how to invest in the DC plan which i am now joining.

I intend to do avc's as well. These will be invested in the same funds and proportions as my normal contributions.

Total contribution including employer and employee will be 18%.

Should I put all in equities? Cash or managed fund?

What's a sensible % to make for each?

Any help appreciated.

Go for it if I was you.

padjo5

With 19 years left most would suggest you have ample time to take a relatively adventurous approach. Why only equities though, have you access to the other main asset classes such as property, commodities? Adding an element of diversification could help soften any heavy market falls, which will obviously happen in the time between now and 2034! Goes without saying that its important to reduce the fund exposure to risk as you get closer to 'cash-in' date. Good luck.

Delta2113

I cant imagine another 19 years in same company -will probably be made redundant in a few years but I'm thinking of going high to medium risk.