Blue-sky thinking needed
The designers of the UK’s new personal accounts, the national pension scheme to be rolled out from 2012, have a great opportunity to shape the way pensions are delivered in future. They could challenge the pensions industry to come up with new ideas and indulge in blue sky thinking.
Or they could stick with standard industry products and hope they work. That seems to be the preferred approach of the respondents to the Personal Accounts Delivery Authority’s consultation on how to provide retirement income.
Exchange traded funds seem to be flavour of the month in mainstream asset management, but they are also becoming popular in some of the more weird and whacky corners of the online personal finance market.
Examples include DecisionMoose, which offers free access to a fairly simple asset allocation model using ETFs, and MarketRiders, which gives subscribers access to “The System”, which according to the website is “a scientific method [for building an ETF portfolio] developed by Nobel Laureates and experts and used by the investing elite, but purposely hidden by Wall Street”.
Which would you trust with your money?