About the see an IFA

noorie

Hi, just been browsing through this forum and am ever so impressed with the knowledge and helpfulness of people. I will shortly be seeing an IFA to discuss my finances but would love to get some views from people here beforehand.

I am 55, took early retirement in 2005 and live quite comfortably off an index-linked final salary scheme pension that I am quite confident will pay enough for day-to-day living for the remainder of my days. I have not worked since 2005 and am not planning to ever get another job. I have no dependents, am single and debt-free with my own house. I now need to decide what to do with some cash funds I have currently in instant access savings accounts. There's some other cash in cash ISAs and I am planning to move another 3.6K into an ISA in April. Not got more than £50K with any financial organisation, so my money should be safe. Over the years, I am planning to spend my cash reserves on little luxuries, travel, etc. and I also want a reserve for any unplanned emergencies.

My attitude towards investments is fairly risk-averse since I haven't made the best experience with shares, or with stock ISAs. I just hate losing money that I have worked hard for! But the recent interest rate drops have made me think again, thus my forthcoming appointment with an IFA.

My questions:

1. what low-ish risk investments should I have a closer look at?
2. is there any merit in starting an additional pension (SIPP etc) at this stage in my life?

Many thanks for your comments and suggestions :cool:

dunstonh

what low-ish risk investments should I have a closer look at

It depends on what you mean by low-ish. One persons low is another persons high. Whatever it is though you do have to remember that low risk is still not the same as no risk. Investments fluctuate in value. That is what they do. You get good times and you get bad times but you average them out. The fact you say you have lost money with shares suggests that you panic and take the money out every time it goes down rather than leave it there and see it through. That would make you a bad investor. If you have done that before, what makes you think you wont do that again/

is there any merit in starting an additional pension (SIPP etc) at this stage in my life?

SIPPs are for experienced investors. That isnt you from what you say. That said, a stakeholder or mono charged personal pension could be but that still involves investing. Of course, if you accept investing, the advantages are great. Tax relief on contribution and leave it in there until late into retirement and get annuity rates which are much higher than savings rates.

If the IFA is any good, they will try to give you a better understanding of investing and what it means and how it works.

jack_spratt_2

Single no dependants .I presume you have done a last will and testament ( nephews ,nieces , sister brothers etc)sorry for stating the obvious but it is surprising how many people who should have one put it off