Self-managing your QROPS investments

QROPS pension schemes offer a huge range of flexible investments that are closed to UK pension savers.

QROPS pensions also come as self-managed, where the investor has a tight control of what happens to the money in the fund, or managed, where a professional fund manager looks after the fund.

Investors can also choose shared investment management with some QROPS providers.

Because QROPS offer more investment choice, anyone managing his or her own fund needs to be careful about balancing risk.

Balancing risk with returns on investment

As the possibility of putting money in to more stock markets, commodities, assets and bonds in major currencies beckons, investors also have to consider how cautious they want to be with their money.

Remember that the money you are investing is your retirement fund. Making shrewd investments with a good return are important, but not at the cost of being unable to fund retirement.

That’s where diversification comes in.

If recent events have taught investors anything, it’s you can have too much of a good thing, so spread the risk.

Take the UK stock market. Pensions have seen £400 billion wiped off their value because of the two most recent crashes in share prices.

QROPS pension fund managers provide a safety net

That’s not a reason not to invest in shares, but more of a warning that shares aren’t the only way to make money with a pension investment.

QROPS pension schemes give a fine level of control, for the hands-on investor, but unless you are an experienced tightrope walker, it’s always better to have a safety net.

In the same way a professional fund manager is there to protect you from yourself as much as any other reason.

At QROPS Adviser, we have a huge track record in successful QROPS pension transfers. Because we look at whole of the market options when we give advice, we can make sure your QROPS pension scheme matches your investment needs.