Least Risk Pension Fund

Froggitt

Purchased Life Annuities

That looks like it would do the trick without the hassle of pension funds SIPPS etc. Should bog standard IFAs be able to do these?

gadgetmind

Froggitt wrote: »

That looks like it would do the trick without the hassle of pension funds SIPPS etc. Should bog standard IFAs be able to do these?

I'd have thought it would be bread and butter to them. Or you could shop around for yourself first, at least to sanity check it.

Here is a thread I started on the subject a week or so back.

https://forums.moneysavingexpert.com/discussion/3245358

Someone kindly provided a link to a very informative site.

http://www.sharingpensions.co.uk/pension_annuity9.htm

Note the lower annuity rate but better tax treatment, but be wary of letting the tax tale wag the investment dog. You need to create a spreadsheet to look at the various options, and be very clear on the tax and personal allowance situation, etc.

Note that I mentioned Purchased Life Annuities as a way of getting best benefit from the 25% PCLS, but if she doesn't have enough earned income to pay any meaningful sums into a new pension, this might be a good move now.

Of course, there is also inheritance to consider. Any money in an annuity is lost forever for inheritance purposes, whereas cash/shares in ISAs and shares held directly can be passed on. Shares have the added benefit that any capital gains are effectively wiped out on death and those who inherent them can sell without hefty capital gains issues. Dividend income is also tax efficient, but there is of course volatility to consider, particularly for anyone the wrong side of 70!

Froggitt

Interesting. On yr other thread, where is the page that came up with

Their example shows 16.8% as income and the rest as capital

gadgetmind

I ran the numbers from their "Tax Treatment" section. Of course, I might have got it wrong ...

in_the_woods

Please do not take any advice from this company. My late father invested almost a lifetime savings with this company and lost everything. When he died I discovered a letter of complaint he had wrote to them, stating that he had been misguided and had felt suicidal about this. Apparently one of the commission muppets who work for this company telephoned him out of the blue (an 80 year old frail man!) and suggested that if he invested a significant lumpsum (over 100k) with them, they could increase his savings and invest in the top companies etc. It is a disgrace and I am now deciding what to do about it. Please take this as a very real warning. You would do better to stick your money under the mattress. These people are crooks.

gadgetmind

What did he choose to invest in such that he "lost everything"? A total wipe out is *very* hard to achieve.

Froggitt

Do HL give advice? I thought they were execution only.

dunstonh

My late father invested almost a lifetime savings with this company and lost everything.

I am sorry. I do not believe you. What you have posted is not credible.

Firstly, there are very few investments that have done that over the last few decades. Most of which are not in the retail sector.

Apparently one of the commission muppets who work for this company telephoned him out of the blue (an 80 year old frail man!) and suggested that if he invested a significant lumpsum (over 100k) with them

I do not believe HL cold call people. Very few financial firms do and certainly not the reputable ones. HL are also fee based IIRC. Not commission based.

These people are crooks.

I think you are trying to sour their name and are not real.

If you want to persuade us you are genuine, tell us the name of the investment and the [rough] dates involved.

gadgetmind

Froggitt wrote: »

Do HL give advice? I thought they were execution only.

They'll give advice if you have a large enough pot. As to whether they would advise you to, 1) Put your money into "Wealth" 150 OEICs and UTs that have high fees, or HSBC Trackers with low fees, I leave as a mental exercise for the reader.

jamesd

What investments were used?