Pension fund 25% cash drawdown

whiteflag_3

EdInvestor wrote: »

nce can of course understand why advisors such as dunstonh or whiteflag won't want to hear this because the cheapest SIPPs cut out the middlemen, so they end up with nothing.

They are thinking of their own interests.Always bear in mind that an advisor's interest may not be identical to yours.

or yours!:rotfl:

I assume Edinvestor the conclusions you draw about SIPPS come from the same dreamland that you get information about my business? Its one thing to post links to biased websites, but its another to just make things up- you know nothing about me or my business.

I find it amazing that you push SIPPS constantly ( and thats a fact no one can argue with) yet you posted this link

http://forums.moneysavingexpert.com/showthread.html?t=1280281&highlight=chase+de+vere

which tells how Chase de Vere have been hit with a massive fine for recommending SIPPS, the very product you advocate !

EdInvestor

MrMicawber wrote: »

I don't think penny is looking to be pushed towards drawdown. Her question was.

"Could anyone tell me what happens to the other 75%. Do I have to buy an annuity or can I hold it in a fund until I retire."

The answer is I think:

a) You could take an annuity now - bad idea because rates are rubbish at your age and it appears you don't need to.

b) You can leave the money in your stakeholder and take an annuity when you retire at 60.

c) You could transfer your stakeholder pension to a personal pension or SIPP and take drawdown.

Err, no.Option b) does not exist. If you want to take the tax free cash, you either have to convert the other 75% into an annuity , or place it in income drawdown. However, it is no longer necessary to take an income from a drawdown plan.
So this is the way to achieve something very similar to option b)

What this thread is all about is the best and cheapest way for the OP to achieve this.
It is interesting to note that no advisor has yet produced any figures showing that a a life company drawdown plan is cheaper than a low cost SIPP..

edinburgher

Still think OP needs to consult an IFA - no amount of in-fighting changes that

dunstonh

It is interesting to note that no advisor has yet produced any figures showing that a a life company drawdown plan is cheaper than a low cost SIPP..

What figures have you produced?

Unlike your limited knowledge, we know whats available on the whole of market and its possible to achieve under 1% reduction in yield with this. What you are recommending will be closer to 1.6-1.7% reduction in yield.

You also know full well that as advisers, we cannot go posting provider recommendations on the board without fear of breaching FSA rules.

whiteflag_3

EdInvestor wrote: »

Err, no.Option b) does not exist. If you want to take the tax free cash, you either have to convert the other 75% into an annuity , or place it in income drawdown. However, it is no longer necessary to take an income from a drawdown plan.
So this is the way to achieve something very similar to option b)

What this thread is all about is the best and cheapest way for the OP to achieve this.
It is interesting to note that no advisor has yet produced any figures showing that a a life company drawdown plan is cheaper than a low cost SIPP..[/quote

I typed a long script about its more than just the cost of the drawdown, its about lifestyle, where you are now now, where you want to be, do you undersatnd where you are now, is it going to be enough, is going to be to much, what about tax then i realised whats the point as Ed your

EdInvestor

You can post costs without making a recommendation.

So far you've posted no figures at all. The low-cost SIPP providers are transparent, they put their charges on their websites so you know what you are paying.

As soon as you get into insurance company/IFA territory, it all goes as vague as can be.Instead of telling you what the cost is, they talk about things like "reduction in yield".

More of the baffle factor.

Buyer beware!

EdInvestor

whiteflag wrote: »

I typed a long script about its more than just the cost of the drawdown, its about lifestyle etc etc ..

Not in this case.We are just talking about extracting the TFC at 50. It's a simple thing. No need to pay a large fee, is there?

.

dunstonh

The low-cost SIPP providers are transparent, they put their charges on their websites so you know what you are paying.

The drawdown/personal pensions issue illustrations using strict FSA guidelines which give full disclosure.

Instead of telling you what the cost is, they talk about things like "reduction in yield".

You do know what reduction in yield means dont you? Would you like to explain that a product with a reduction in yield of 1.6-1.7% is more expensive than one with 1%?

More of the baffle factor.

Buyer beware!

That applies more to you. You disregard options, you rule out alternatives without even knowing what is out there. You slag off those covering the alternatives and try and dress it up using fashionable anti IFA slurs which may work the with the cynical and sad individuals out there but not with anyone with half a brain cell. The poor OP has had to put up with you promoting one product as the only option that fits despite there being a range of options.

whiteflag_3

EdInvestor wrote: »

Not in this case.We are just talking about extracting the TFC at 50. It's a simple thing. No need to pay a large fee, is there?

yes but it becomes that if you come to see me (or any other IFA for that matter).

Like I said earlier ED ( but you ignored as usual)you know nothing about me or my business.

Is the fee large?

EdInvestor

dunstonh wrote: »

You slag off those covering the alternatives and try and dress it up using fashionable anti IFA slurs which may work the with the cynical and sad individuals out there but not with anyone with half a brain cell.

If you look at the threads stickied at the top of this forum, the one on SIPPs has attracted almost 40,000 viewers and the one on Income Drawdown has been read by nearly 36,000 people. Both these threads include a range of points of view on the subject.

Many people want to know the most cost-effective way to manage their retirement income and/or to get the 25% tax free cash which they are now allowed to take out of their pension fund if they are aged 50 or more.

I am sorry to hear that you think these people are cynical, sad and thick.

If advisors posted the full range of options, rather than just the ones where they can charge fees, it might be less necessary for others to point out alternatives.