tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/1238-uk-pension-accountsInfinite Kind: Discussion 2018-03-17T01:12:57Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/409592982016-10-11T07:35:20Z2016-10-11T07:35:21ZUK pension accounts<div><p>Another important feature of these accounts is that they are not
liquid before a given age (say. 65).</p>
<p>This is important to know because if I input them as an
"Investment Account" with an initial balance of X, it will show up
as cash in my Asset Allocations. Which it definitely is not.</p>
<p>Thanks</p></div>AEtag:infinitekind.tenderapp.com,2009-01-14:Comment/409592982016-10-11T08:03:04Z2016-10-11T08:03:04ZUK pension accounts<div><p>This is not dissimilar to superannuation in Australia.</p>
<p>I personally believe that handling it as an investment is the
best way to go,especially as provided it is well setup allows you
to track performance etc.</p>
<p>It is also pretty common for these funds to be structured as a
master fund, in other words you place money in a fund and it in
then invests in other funds, usually these other funds are
wholesale funds i,e, retail investors cannot directly invest in
them they must invest via a master fund structure.</p>
<p>In my case one of the master trusts I am in allows you to select
from a couple of hundred funds you could invest in., in my case
last time I counted I was investing in 20+ odd funds.</p>
<p>It is worth noting that in many cases it is extremely difficult
or impossible to track the individual funds, pricing information is
often not available for wholesale funds or the data you get is not
of the detail needed and once you get more than a few funds the
number of transactions that reflect distributions, fees,
re-investments etc can easily be in the hundreds per quarter.</p>
<p>My methodology is to set up an investment account and I create a
security that represents the master fund, which I add to the
investment account in the normal way.</p>
<p>For my initial transactions i assume that the price of the
security is $1 and thus the initial number of units is the same as
the dollar value of the transactions.</p>
<p>Thereafter the unit price is calculated by dividing the current
value of the fund by the number of units I "have" which initially
is the same as the amount of my initial investment.</p>
<p>I handle sales and purchases by calculating the current price
just before the transaction then using this as the unit price for
the sale or purchase. I created a spreadsheet that does these
calculations for me, especially useful as I update the value
monthly, hence my calculated number of units will reflect my
ongoing holdings and take into account sales and purchases
similarly to how you work with shares.</p>
<p>You cannot just put the funds in an investment as you stated in
your response #1 you have to create and use a security, otherwise
the result is just equivalent to holding cash as you have
noted.</p>
<p>Infinite Kind have done very little in investment handling for
some years, so there have been no significant improvements in my
opinion.</p>
<p>Handling as an Asset will give you very little in my view, you
would basically be able to keep the value up-to-date, you can use
categories to record various things like increases/decreases in
value but reporting is limited in terms of what you can show.</p></div>dwg