Pension plans/retirement

[Bellend Sebastian]

1 hour ago, Kopfkino said:

 

It's not FSCS regulated. It's not a stocks and shares ISA either as it's corporate bonds so essentially it's more like an unregulated P2P product. It's probably riskier than you're wanting/realise? 

Not being regulated by the FCA was the first thing I noticed too.

 

In no way a mainstream product, I'd be very wary.

 

This may help:

 

https://www.moneysavingexpert.com/savings/stocks-shares-isas/#evestor

[Rob1742]

On 19/07/2018 at 04:29, Carl the Llama said:

Anybody on here had any experience investing in stock & share ISAs? How the bloody hell do they really work? 

 

I'm considering shifting some cash from an old ISA I've been neglecting (on purpose mind you - I find shoving these things to the farthest recesses helps avoid the urge to spoon off and defeat the purpose) to make it more profitable so any sage advice from more wisened heads would be gratefully received.

 

Then again would it be fair to say that a run of the mill ISA's probably the best place to leave my money right now if we're headed for another economic nosedive with all this Brexit malarkey?  

I have put my cash ISA’s into a stocks and shares ISA, without the need to see a IFAC, and so avoided their costs.

 

i did mine online through Nat West Invest online. Easy processs and the monthly costs are minimal and you can pick low, medium or high risk plans.

 

You can also invest in stocks and shares outside of the ISA doing the same.

 

Saved me all the IFAC costs, minimal quarterly charges, you can check the movements online whenever you want and you avoid having the unpleasant task of speaking to an IFAC

[HowardsBulletHeader]

On 19/07/2018 at 04:29, Carl the Llama said:

Anybody on here had any experience investing in stock & share ISAs? How the bloody hell do they really work? 

 

I'm considering shifting some cash from an old ISA I've been neglecting (on purpose mind you - I find shoving these things to the farthest recesses helps avoid the urge to spoon off and defeat the purpose) to make it more profitable so any sage advice from more wisened heads would be gratefully received.

 

Then again would it be fair to say that a run of the mill ISA's probably the best place to leave my money right now if we're headed for another economic nosedive with all this Brexit malarkey?  

I started mine with Charles Stanley in December 2016, I don't have the income or the nous for investing a lump sum, so I invest in tranches each month. 

 

You can pick one of their standard portfolios, they also have their most viewed and purchased funds/shares etc and plenty of market information to raft through. Personally I chose my own through a couple of weeks of research, after all that's part of the fun! Plus it has made me check it regularly, the sense of "I picked that" when it is doing well makes me feel good! 

 

I put £25 aside for fees in January 2017 and I still have over £18 left to cover those so the charges for funds are very low (everything is relative of course, invest more, more charges etc.). 

 

I haven't gone into individual shares yet, say an Apple or BT, I only trade funds which may be why my charges are low but I feel it is a good way to go. 

 

As someone else mentioned, there's no way it can be predicted as to how Brexit impacts the markets, I won't bore you with my own viewpoint but it could go either way. 

[RODNEY FERNIO]

I'm kind of hoping that there is a sharp adverse reaction on the markets when Brexit finally happens.

Might be a good time to buy if you can assess when the market hits the bottom of the trough as am pretty

sure the markets will bounce back. 

[Guest]

2 hours ago, RODNEY FERNIO said:

I'm kind of hoping that there is a sharp adverse reaction on the markets when Brexit finally happens.

Might be a good time to buy if you can assess when the market hits the bottom of the trough as am pretty

sure the markets will bounce back. 

Spoke like JRM himself 

[Strokes]

2 hours ago, RODNEY FERNIO said:

I'm kind of hoping that there is a sharp adverse reaction on the markets when Brexit finally happens.

Might be a good time to buy if you can assess when the market hits the bottom of the trough as am pretty

sure the markets will bounce back. 

A housing price crash would be good for me, tbh.

Edited 26 July 2018 by Strokes

[Foxfromburbage]

Hi, has anyone had experience of doing a flexible drawdown pension and has it worked for them. I'd be interested in what % you drawdown and what growth / decreases your have experienced. Its difficult seeing a real case study anywhere on-line.

[Jacafox]

Hi. I am due to retire in about 4 years. I can't give you an illustration from experience, however I am aiming to do a flexible drawdown  pension. I want to convert my annuity private pension scheme  to a drawdown scheme because at present annuities are poor value. 

Along with the fact that when you die the pension company keeps all the pension pot unless you have made a deal with the company. EG do a joint annuity in case you die first, so that she can still get payments. As she will be included the the monthly payments, what you will receive from a single annuity is reduced . When she also goes they keep the remainder of the pot. You only really win in this if you live  to your mid nineties. If there is any money left i shall want to leave it to my family.

 

The way to find out how a drawdown may work for you is to do a drawdown calculator. 

 

This is available on the Hargreaves Lansdown website. You do not have to have an account with them to do this. From this you can deduce how the drawdown would work for you if that is the route you would like to take, you can make up different scenarios on how long would your fund last which would depending on how much you take out. You could just draw off the yields for example and keep the bulk of it invested. Of course there are risks to this but  for me the flexibility of a drawdown is appealing.  You may know all this anyway but just in case you are unaware.

[Mayofox]

On ‎28‎/‎07‎/‎2018 at 05:58, Foxfromburbage said:

Hi, has anyone had experience of doing a flexible drawdown pension and has it worked for them. I'd be interested in what % you drawdown and what growth / decreases your have experienced. Its difficult seeing a real case study anywhere on-line.

I cannot comment on the UK scheme, but here in Ireland we have Approved Retirement Funds (ARFs) which appear to be very similar.

 

You can keep your money invested in this fund after retirement, and have flexibility in terms of when and at what rate you draw on the ARF. You can choose where the funds are invested. Growth in the fund is tax free. And you can decide to buy an annuity later on, if you decide you want a secure, regular income. The pension doesn't die with you, but is passed on to your spouse/estate, unlike an annuity.

 

The minus points are that the assets in which the ARF is invested may under perform, you have to pay for any ongoing investment advice, some funds have high ongoing charges, and the taxman will assume you've taken 5% each year, even if you haven't, and you'll be charged income tax on that amount.

 

As you can see, it ain't straightforward; get independent advice.

 

When it comes to returns, pension investment after retirement offers low returns, in return for safety.  My personal experience is that the sum I started out with, 4 years ago, is virtually unchanged!

[Foxfromburbage]

16 hours ago, Mayofox said:

I cannot comment on the UK scheme, but here in Ireland we have Approved Retirement Funds (ARFs) which appear to be very similar.

 

You can keep your money invested in this fund after retirement, and have flexibility in terms of when and at what rate you draw on the ARF. You can choose where the funds are invested. Growth in the fund is tax free. And you can decide to buy an annuity later on, if you decide you want a secure, regular income. The pension doesn't die with you, but is passed on to your spouse/estate, unlike an annuity.

 

The minus points are that the assets in which the ARF is invested may under perform, you have to pay for any ongoing investment advice, some funds have high ongoing charges, and the taxman will assume you've taken 5% each year, even if you haven't, and you'll be charged income tax on that amount.

 

As you can see, it ain't straightforward; get independent advice.

 

When it comes to returns, pension investment after retirement offers low returns, in return for safety.  My personal experience is that the sum I started out with, 4 years ago, is virtually unchanged!

Thanks Mayofox  , I'm in the process of seeing a FA and will start drawdown at 55 , I've read so much on the topic but have found it difficult finding anyone that's doing it rather than the old fashioned annuity. I'm lucky I am backed up with a separate final salary as well but taking this option for part of my pension for the reasons you have outlined and should give me flexibility of packing in or reducing work well before my proper retirement date if I so wish. Not a rich man but enough to keep me ticking over. So you youngsters get saving. 

[Foxfromburbage]

19 hours ago, Jacafox said:

Hi. I am due to retire in about 4 years. I can't give you an illustration from experience, however I am aiming to do a flexible drawdown  pension. I want to convert my annuity private pension scheme  to a drawdown scheme because at present annuities are poor value. 

Along with the fact that when you die the pension company keeps all the pension pot unless you have made a deal with the company. EG do a joint annuity in case you die first, so that she can still get payments. As she will be included the the monthly payments, what you will receive from a single annuity is reduced . When she also goes they keep the remainder of the pot. You only really win in this if you live  to your mid nineties. If there is any money left i shall want to leave it to my family.

 

The way to find out how a drawdown may work for you is to do a drawdown calculator. 

 

This is available on the Hargreaves Lansdown website. You do not have to have an account with them to do this. From this you can deduce how the drawdown would work for you if that is the route you would like to take, you can make up different scenarios on how long would your fund last which would depending on how much you take out. You could just draw off the yields for example and keep the bulk of it invested. Of course there are risks to this but  for me the flexibility of a drawdown is appealing.  You may know all this anyway but just in case you are unaware.

 Thanks  jakafox I appreciate your reply , I've done loads of illustrations and my own excels and it looks right for me but I'd love to hear from someone that's on this path to see how it's working for them.

[Bellend Sebastian]

1 hour ago, Foxfromburbage said:

 Thanks  jakafox I appreciate your reply , I've done loads of illustrations and my own excels and it looks right for me but I'd love to hear from someone that's on this path to see how it's working for them.

Because of how the markets have been (generally pretty good) since 2015 when the Pensions Freedoms legislation came in, when drawdown became really popular, I think a lot of people would say it's been great for them.

 

Those that were in drawdown during the financial crisis when everything was dropping like a stone would have a different opinion, I expect.

 

There are so many variables that determine outcomes that it's difficult to read too much into one person's experience.

 

Attitude to risk, wealth and income other than your pension, your partner's own position, whether you're bothered about passing capital down the generations etc are just some of the things that vary from person to person.

 

It certainly can work, and the flexibility now allowed means that it's a good option for a lot more folk than it used to be

 

 

 

[VLC86]

Judging by mine and the other half’s spending we should be good to retire about 40 years after we die.

[Max Wall]

3 minutes ago, Costock_Fox said:

Judging by mine and the other half’s spending we should be good to retire about 40 years after we die.

Congratulations. You're ahead of the game for this era.

[daverollo]

If anyone is considering DIY investing, whether that is through a SIPP or ISA then their is a really good guide to the different available platforms that provide investment services comparing costs and service and breadth of market coverage.

 

Which company you use is really down to the size of the portfolio and where you invest.  Funds for instance tend to attract far higher ongoing fees, whereas investment trusts don't and some really cost effective ways of investing

https://www.langcatfinancial.co.uk/product/come-go-served/