Retirement planning - how to make the best of these assets?

atush

I also can't decide whether/how much to put into the pension with the GAR, as anything I deposit is probably going to see more or less zero growth. I'm guessing that the best thing would be to buy the GAR annuities as soon as they're available (at age 60 I believe), even at the "lower" rate of 9% but again that isn't a straightforward decision.

Actually any new funds you put in will increase by Basic rate tax immediately so they will see some growth (around 5% I guess if you are retiring in 5 years). Then you get that higher income at age 60 than you would otherwise and that worth something too. So I would add to it.

Have you spoken to these IFAs over the phone or face to face? I'd pick two or 3 and meet.

itm2

atush wrote: »

Actually any new funds you put in will increase by Basic rate tax immediately so they will see some growth (around 5% I guess if you are retiring in 5 years). Then you get that higher income at age 60 than you would otherwise and that worth something too. So I would add to it.

Have you spoken to these IFAs over the phone or face to face? I'd pick two or 3 and meet.

Good point re. tax relief, if talking about new investment rather than transferring from other pension plans.

I've met with one IFA, have another face-to-face appointment next week, and have spoken to 2 others.

The one that I met proposed an up-front cost of £300 plus a monthly retainer of £72 for a minimum 1 year term. I asked him for a sample of the sort of retirement planning report that I could expect, which he provided. It largely followed the pattern of the financial reports that I've had prepared for me in the past - i.e. it mainly replays the information provided by the customer to the IFA, and contains a few specific recommendations re. re-investing some existing assets (using the IFA's preferred platform). There's nothing by way of a detailed projection of the next 45 years, showing where the income will come from and how the tax will be minimised. The spreadsheet that I already have seems to be of more use, and contains far more detail.

dunstonh

There's nothing by way of a detailed projection of the next 45 years, showing where the income will come from and how the tax will be minimised. The spreadsheet that I already have seems to be of more use, and contains far more detail.

How much do you expect to be given to you for free? Those sorts of reports cost time and money and an IFA would be daft to give them out for free. The IFA who hasnt completed a factfind and had a decent concept and ideas and getting to know you and what you want style discussion isnt going to know your knowledge and understanding. So, to go straight into in depth analysis without knowing whether you want it or not and when you havent paid for it would not be expected.

I know my reports dont include a projection as that is available either on a stochastic modelling report or pension analysis software (which to use would depend on the individual and which services they are employing me for). I suspect most IFAs are the same.

itm2

dunstonh wrote: »

How much do you expect to be given to you for free? Those sorts of reports cost time and money and an IFA would be daft to give them out for free. The IFA who hasnt completed a factfind and had a decent concept and ideas and getting to know you and what you want style discussion isnt going to know your knowledge and understanding. So, to go straight into in depth analysis without knowing whether you want it or not and when you havent paid for it would not be expected.

I know my reports dont include a projection as that is available either on a stochastic modelling report or pension analysis software (which to use would depend on the individual and which services they are employing me for). I suspect most IFAs are the same.

The report I was shown was far from free - it was what was being proposed for £300 up-front plus a 1 year tie-in at £72.

atush

But you hadn't paid anything yet, nor done the fact find. So you are asking for free help really, which is hard to give as they don't know enough. Nor do we frankly.

itm2

What I mean is: I asked for an example of a report which they had previously prepared for a customer of this service - i.e. an example of the report that I would be paying for. This contained the outcome of a full fact find and recommendations for another customer.

jackyann

somethingcorporate wrote: »

But you trust a forum full of random strangers with no guarantee they are who they say they are?

If I were you put your feelers out amongst friends or colleagues to see if you can get a personal recommendation.

Have you seen www.unbiased.co.uk?

I am sure if you look hard enough you will find what you need and my recommendation is not to take "advice" from a forum when it comes to dealing with over a million pounds worth of assets!

I understand what you are saying, and of course, professional advice needs proper payment. But I, with fewer assets, have been very wary of IFAs.
The point about MSE advice is that one one gets lots of points of view & can check them out at leisure; if one ignores advice, no-one gets upset.
I don't think anyone would blindly follow advice here, but use it as a starting point to explore.
I too, feel that I have got more sensible advice on here than from an IFA. Eg: my IFA advised me to take the maximum lump sum from my NHS pension (which he would invest for me!). Instead, I kept the maximum index- linked pension with smaller lump sum: advice I have seen given here many times.
Neither IFA I consulted wanted to take any notice of my wish to use ethical investments. However, from this board I have got ideas & confidence about choosing one in the future.