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serious pension advice
serious pension advice
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There's a risk of paying a huge tax bill! I wouldn't pay a FA or IFA for something I can work out for myself however.
This is a couple of years old now, but still a decent article. .https://www.telegraph.co.uk/money/special-reports/100000-to-invest-for-income-three-retirement-strategies-that-pay/ |
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That's you Cider; good to know you are alert to your investments but most are not as astute; I know most of my old clients weren't
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That's a fair point Aspro. What I would suggest is that anyone who is competent with numbers and google can identify what they need to know, except in the most complex of situations. If they are clueless with numbers and don't have close friends/family to call on, then perhaps seek out an adviser.
In the OPs case it might well be that exorbitant fees may well have been eroding his gains. Even with fees, the numbers still don't feel quite right. |
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Totally agree Cider, hence my earlier comments (top of thread). 9 years without growth is criminal but on checking his fund it has a one-star rating so perhaps its just a bad investment strategy from Standard, which was very unlike them back in the 80's & 90's. Within 5 years of retirement I would be looking at low-risk only; no point chasing that close to the wire.
With 5 years left I took out a medium to low risk investment with Zurich (no fund details) and then with 2 years left I transferred back to a with-profits to pretty much lock-in what I had until drawdown. Although it does jump (rarely but it does happen) it has ticked over at a steady 5.5% over the past 5 years and I'm confident I will maintain at least 4% (which is what my withdrawals are based upon) going forward. |
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The initial transfer was from a DB scheme; kids off-hand, no wife to take it off me; it was a no-brainer
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Although this fund is far from a great performer, it has still achieved growth of 75% over the 9 years you've mentioned. Of course, you're drip feeding some but 50K original investment would be 87.5K less fees.
You're right Cider, there appears to be missing quite a lot of 1sttimeposter's money. Curious. |
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Cider, have you got the right fund? I looked this up the other day and it wasn't the fund from your link
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It has a one star rating on one of the sites, but has still achieved circa 6.4% annualised growth. So something is not adding up.
In wider terms, as you'll know Aspro it's about two things really, your attitude to risk, and fees. Lower risk is lower reward, but less likelihood of needs to access the funds at a lower rate than invested. I'm looking to FIRE, personally. My intention will be to keep my pots almost entirely in equities. The possibility in doing so rests with achieving a pot large enough that my withdrawal rate is a low one (at least to begin with). The largest 'threat' (aside from building a large enough pot) is changes to legislation. Which is outside of all of our control. Will I get a state pension, will there still be a TFLS option, will you still be able to drawdown etc etc. It's currently mooted that I won't be able to access my pension at 55 like people can now. However, there's nothing one can do about these possibilities, all you can really do is work toward existing legislation. |
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I too have heard that the 55 is increasing; it was a pain when it increased from 50 to 55. I was within spitting distance and had to wait another 5 years, although with hindsight I actually benefitted more from it. The state pension is sure to increase and it was only a few years ago that they increased that from 30 to 35 years.
A confirmation of fund would certainly help as I wasn't looking at the retail one |
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I'm bang in the sweet spot for increases unfortunately, and the goal posts have moved from 65 to 68 already! If I'm lucky enough to get that far. The suggestion is that pension access will be restricted to 10 years before state pension age.
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That would make sense
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This video is over an hour long, but I highly recommend it.
.https://www.ifa.com/indexfundsthemovie/ |
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With dinner about to start and Spurs playing tonight I will watch it another time, but I will admit that it is refreshing to see individuals taking the bull by the horns. I sincerely hope you exceed your expectations and based on your posts to date, I have no doubt you will.
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Thanks Aspro. COYS!
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Indeed!
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Interesting thread. I'm self employed and I wish I'd started a pension much earlier than I did
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on the plus side we,ve gone up best part of a grand since having a moan,
 the rest doesn't mean a lot to me SL SLI dynamic distribution pension fund unit price 178,095[ they were 182 plus for the last few years ] average cost 1,.3% or seems to show about 15 quid a month |
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that's 72,712,562 units
bit more info plan is already in drawdown as I took 18 grand out of it8 yrs ago to pay mortgage off, which left 50 grand in drawdown which give me 271 quid a month which comes in my bank one day and goes out the next reinvested in the plan, according to the plan that's been £42,321, so I have 2 plans one crystalised one isn't, which leaves both plans adding to 130 grand and £20,528, available as a tax free lump not sure whether it shows the plans doing ok but ive noticed that for the ist time the original roughly 50 grand pot that funded the 271 quid a month has fallen below the original 5o grand ,only just 49 grandish |
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I also top the reinvested 271 up to £400 in total per month with the tax relief
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Unit price nine years ago was 100 according to:
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06DZQ&tab=13 |
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before anyone gets excited I also transferred 30 grand into fund from a stakeholder pension when I was made redundant about 3 years ago
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I contracted out of serps in the late 80s and the contributions are in a Phoenix Life Pension, my intended retirement date is June 2019.
I actually retired last year and will get the state pension in March 2020. I have a few SIPPS with Hargreaves Lansdown. I went into drawn down on one sipp last year and took the 25% cash and also withdrew £11,850 to use up my tax free allowance 2018/2019 I will also withdraw for the 2019/2020 something similar less the 2 months state pension that I will receive for that year to use up the TFA of £12,500 Yesterday I received an estimate of what my serps pension fund from Phoenix Life will be worth in June 2019 which is £67,219 I have read the explanation leaflets and from what I can gather, I can transfer this pension in its entirety in June to my HL SIPP. My MVR free date is June 2019. A couple of questions, Can I take 25% tax free cash from Phoenix Life and transfer the remaining 75% to HL Sipp or do I transfer the lot to HL Sipp and take the 25% tax free cash when I put the SIPP into drawdown with HL. I am a bit worried that in future years the Government may abolish the 25% tax free element so may put it into draw down in the next year and just not draw as I do not need the money as yet. Will I need to pay for professional advice? ( I do not want advice) Any cash I get will go into Isa's in my name and my wifes to use up the 20,000 annual allowance. My sipp and isa's are invested mainly in investment trusts with some individual share holdings. They cover Japan, China, USA,UK and Europe. |
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I'm a bit out if touch, but IIRC taking the 25% is putting the funds into drawdown (albeit taking no income), so that would involve some sort of "process" with Phoenix that may or may not involve charges (and you would have to check whether HL will accept a fund in drawdown). You should be able transfer the entire fund to HL without advice unless there are some guarantees and then take the 25% if you want.
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Cheers 1tp.
This looks like this is the correct fund here .https://markets.ft.com/data/funds/tearsheet/charts?s=GB00B3K62F76:GBX So it's officially called Standard Life Investments Dynamic Distribution Series 4 Pension Fund  This was around 1.00 when you started now 1.78 so 78% in 9 years. That's 6.62% annualised. |
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well that doesn't look or sound to bad and about where I was promised when I set off down this road, just disappointing when the twice a year your keep a look out coincide with its high/low spots, stick with it for next year or two
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mrc
Assuming Phoenix Life is not yet crystallised my understanding is that you can transfer the whole fund into your SIPP, and then go into drawdown if you wish. You receive 25% tax free on the drawdown amount you decide and the rest goes into a separate fund which you can take income from. All income from that fund is then subject to income tax at your marginal rate. Possible there will be a transfer fee from PL. HL will be able to give you specific advice on the mechanics of the transfer etc for no charge. |
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thanks for the advice
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No worries. Have a look at L&G Multi Index, HSBC Global Strategy or Vanguard Lifestyle Strategy (there are other alternatives). All have funds as I've described above with various risk options. With platform and management fees added together you should be able to get the overall fees below 0.5%. Plus, reduce exposure to the UK.
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Dave and Cider thanks
Phoenix do not do draw down Hopefully there will not be a transfer fee I think the best thing is to transfer the lot to my HL SIPP and then decide when I want to take the 25% |
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Assuming Pheonix is DC mrc? If it is DB with a transfer value of 30K+ then it will require an IFA to provide formal advice.
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will be DC as funded from NI rebates - only issue (very unlikely) is if a guaranteed annuity rate is on offer. Phoenix hoovered up a lot of other companies and some of these offered guarantees even on simple money purchase plans.
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If it has a GAR he'd probably want to keep it (if health ok etc)
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as I said above he won't be able to TV without advice if there is a GAR. (It is v unlikely that there will be one.)
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There is no GAR
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Should be reasonably straight forward then, albeit some of the old school operators are incredibly antiquated. I recently had to populate a 7 page document just to switch funds within my workplace scheme
 The government are looking into creating a pensions 'hub' where you can view everything online in one place. I'm not holding my breath |
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Thanks
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GOT SOME INFO back about my funds performance on a volatility scale of 1 to 7 ,7 been high my fund is considered mid range at 4 and the unit price throughout the year was
10 jan 2018 192 21 march 2018 182 10 aug 2018 192 25 dec 2018 175 10 jan 2019 180 |
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At a bit of a loss to understand how the fund has managed not to make you any money - your original £50k investment at 100p should have gained £40k on its own, unless you have taken money out of it.
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