Pension transfer

nrsql

I have recently received pension transfer advcice.
I have about 30K in a legal and general cash account and 30K in a standard life executive pension scheme. I work though a limited company and have just turned 55.

The suggestion is move everything to a legal an general scheme and convert to a drawdown taking 25% tax free (my requirement) leaving about 45k in drawdown. I don't expect to take anything out for several years.
The rest is to be invested equally in 5 funds
index linked gilt
distribution
uk equity tracker
glabal fixed weights (tracker) 70:30
property.

My attitude to risk turned out at around 5 out of 10.
For this I am being charged £600 plus the commission to cover an annual review.

Does all this sound reasonable?

Loughton_Monkey

Personally, I wouldn't touch gilts since interest rates can only go up. Neither would I invest in property since I think personal is going to sleep for a few years, and commercial is surely in for more pain while the hardship remains. But personally, I'm not paying £600 either!

dunstonh

For this I am being charged £600 plus the commission to cover an annual review.

Seems fine.

nrsql

Thanks - I take it there's nothing wrong with doing this with L&G.
I feel the same about property and gilts but who knows?
I am low on these funds elsewhere so could consider this as diversification.

dunstonh

Thanks - I take it there's nothing wrong with doing this with L&G.

Wouldnt be my choice personally. However, you know what you are getting with them.

cing0

Loughton_Monkey wrote: »

Personally, I wouldn't touch gilts since interest rates can only go up. Neither would I invest in property since I think personal is going to sleep for a few years, and commercial is surely in for more pain while the hardship remains. But personally, I'm not paying £600 either!

Not true for Property (ISIN GB0030534761) in the L&G stakeholder pension which has performed better than any other fund available in the L&G SH product in the past year or so.

Gilts funds are good for capital appreciation if you can get them cheap and you've no use for your fund for 3 months or so.

Loughton_Monkey

cing0 wrote: »

Not true for Property (ISIN GB0030534761) in the L&G stakeholder pension which has performed better than any other fund available in the L&G SH product in the past year or so.

I was not trying to denegrate L&G's own Property fund as opposed to anyone else's Property fund. I was just casting a personal opinion that I wouldn't invest in a property fund myself just yet.

Over the last 3 years, L&G's Property fund has produced a total return of 3.1%. It appears 317th on a list of 356 L&G funds that have been going for 3 years+ - in decending order of 3 year return.

nrsql

Loughton_Monkey wrote: »

Personally, I wouldn't touch gilts since interest rates can only go up. Neither would I invest in property since I think personal is going to sleep for a few years, and commercial is surely in for more pain while the hardship remains. But personally, I'm not paying £600 either!

It's worth £600 to me for someone to handle the paperwork let alone advice and knowledge of regulation (now and in the future).

cing0

You no nothing, neither does an IFA at 200 quid + VAT per hour.

L&G Over 15 Years Gilts SH Pension fund (GB00B1FR9168) up 14% year on.
Henderson Long Dated-Gilt fund (GB0007476756) up 10% year on.

Find that performance in equities ?

Loughton_Monkey wrote: »

Personally, I wouldn't touch gilts since interest rates can only go up. Neither would I invest in property since I think personal is going to sleep for a few years, and commercial is surely in for more pain while the hardship remains.!

dunstonh

cing0 wrote: »

You no nothing, neither does an IFA at 200 quid + VAT per hour.

L&G Over 15 Years Gilts SH Pension fund (GB00B1FR9168) up 14% year on.
Henderson Long Dated-Gilt fund (GB0007476756) up 10% year on.

Find that performance in equities ?

Pensions cover a period of upto 50 odd years typically. Probably more if you do drawdown. Does it really make sense to look at 12 month performance? How about you look at equities the year before and compare it to those two funds? How does 40% gains compare to the gilts? Equally irrelevant and too short term.

Proxy

Yields on the majority of gilts are currently at all time lows.

You'd be a fool to buy now. You've seen the bandwagon; therefore you've missed it.