Some Clear Advice

Conrad

I used to sell pensions. Theyre the last place I would put my money.
You have no control over the pot in retirment for example when you die the insurers keep the money and the income must be put into an annuity - so you cant invest the money as u see fit at the time.

They are also a very cumbersome expensive ways of saving.

I use Unit Trusts offered by INVESTMENT HOUSES. In other words I go direct to the people doing the actual investing. If u go via a Bank for example you introduce another party into the chain - totally pointless, Ive found the big Banks et al to little actual investing themselves and more often than not farm it out to investment specialists - go direct its easy.

The other thing I do is buy property, commercial property and also residential property abroad (Berlin and Morocco). iF u prefer not to have the hassle, why not buy into a property fund investing in say E Europe?

All my investments leave me in control and arent underminned by too many cooks spoiling the broth.

dunstonh

I used to sell pensions. Theyre the last place I would put my money.
You have no control over the pot in retirment for example when you die the insurers keep the money and the income must be put into an annuity - so you cant invest the money as u see fit at the time.

Good job you are no longer selling pensions then as that statement contains errors. Errors sufficient enough to result in compensation if found out.

They are also a very cumbersome expensive ways of saving.

Also wrong. Pension wrappers can be amongst now.

I use Unit Trusts offered by INVESTMENT HOUSES. In other words I go direct to the people doing the actual investing.

So, you say you use unit trusts offered by investment houses. Fair enough but those same unit trusts are available in both ISA and pension tax wrappers which could offer significant advantages.

Conrad

dunstonh wrote:

Good job you are no longer selling pensions then as that statement contains errors. Errors sufficient enough to result in compensation if found out.


Also wrong. Pension wrappers can be amongst now.


So, you say you use unit trusts offered by investment houses. Fair enough but those same unit trusts are available in both ISA and pension tax wrappers which could offer significant advantages.

All muppetry!

Pensions are a thing of the past. As usual IFAs cant see beyond the trees.

Just as the muppet IFSa out there carried on selling pathetic expensive bonds and with profits policies when there were far better alternatives that gave far superior overall outcomes, they now continue to recommend pensions which are entirely to benfit the industry. No one needs a pension.
Sure we all ought to use our ISA entitlement - thats a different argument.

Why on Earth would someone want to give up contol of 75% of THIER money upon retiring?
All my money will pass to my kids and I have total control. I wont have to accept a paultry inflexible annuity I will be able to diversify as I see fit.
Have you been to the head offices of L & G or NU? Have you seen the vast armies that need paying out of your pot?

Pensions are for the brain dead.

In 1995/96 I vehimently argued endowments were inappropriate mortgage vehicles whenever I attended conferences. I was a lone voice and people like you were simply submitted to the machine.

The machine still rules I see.

dunstonh

All muppetry!

Doesnt change the fact that you were wrong on a number of points.

for example when you die the insurers keep the money

Incorrect. The fund value is paid to the nominated beneficiary.

and the income must be put into an annuity

Incorrect.

so you cant invest the money as u see fit at the time.

You can invest virtually anywhere you like. Including unit trusts which you say you invest in.

They are also a very cumbersome expensive ways of saving.

They can have the same funds cheaper. Investing in a pension portfolio can be exactly the same as investing in a unit trust portfolio.

I use Unit Trusts offered by INVESTMENT HOUSES. In other words I go direct to the people doing the actual investing.

Exactly the same as a pension.


There are pros and cons to the pension and ISA scenarios. It is not all negative as you make out and it appears you information is based on the pension product of 5-10 years ago and not the pension product of today.

danleaki

Newbie...I am also in a dilemma. I am 36 and wonder if I should continue to contribute to my pension? I have £3000 in my pension and pay £60 a month into it I could probably afford to double this but I have looked at some calculators and they seem to say that if I stay as I am i would only receive 20% of my wage which seems a very little when I should be targeting at 66%. My question is do I continue with pension or cut my losses and look at other areas to put my money?????????

margaretclare

Hi Dan

You'd need to tell us a bit more about your current pension arrangements before anyone could make a useful comment.

Best wishes

Margaret Clare

danleaki

Only other details is that it is a stake holder pension and is with standard life.

margaretclare

danleaki wrote:

Only other details is that it is a stake holder pension and is with standard life.

So if you pay in £60 a month and you're a basic rate taxpayer you're benefiting from 22% added to your contribution from the nice taxman. So Standard Life have got £73.20 a month invested in a fund that you chose when you started the stakeholder. That's £878.40 a year.

How long have you been doing this - how long has it taken you to build up the £3000 total?

Haven't Standard Life got a website? I've had a stakeholder with Friends Provident and I've been able to check up on the value of my fund every single day. I could also switch funds within FP, pay more, pay less - there are a lot of choices.

It's up to you really - if you can afford to put in more then do so. In addition, max out your annual ISA allowance as well.

Best wishes

Margaret Clare

ffacoffipawb

Troubleatmill wrote:

With £800 each month as spendies..

1/ !!!!!! it away on friteries.

What, buy a chip shop?