Hello
I’m 33 and thinking about how to allocate my ITP 1 pension. There 2 options in collectum: traditional insurances and fond insurances. My feeling is that these traditional insurance options like Alecta or SEB’s option, are not the best in the long run precisely because they offer guarantees to the pensioners. In order to offer these guarantees, they need to have a more conservative portfolio (like 30% in bonds like Alecta has) which is suboptimal for long term growth. However, Collectum mandates that 50% of the ITP1 pension needs to be assigned to a traditional insurance option. Hence, here is my current best guess for the ITP1 allocation:
- The mandatory traditional insurance of 50% goes to Alecta, since they are the default ITP1 option and therefore should be very stable and trustable. They also have the lowest fees within the traditional insurance options;
- Then the other 50% I put it in SPP, in a porfolio of their cheap index funds (e.g. 65% global, 20% swedish, 15% emerging markets), since they seem to be the company with index fund with the lowest fees out of the 5 different companies for fund retirements that we can choose in collectum (i.e. the index fund options of Handelsbanken, Movestic, Futur Pension and Swedback has higher fees).
What do you think about this allocation? Is there something I’m missing, or do you think this allocation sounds ok?
Joao