What to do next?

KNJ_2

After several years of observing, time for me to seek advice, and opinion on current financial status.
Me. 54 year old, wife( Japanese so no UK pension) no children, House value about 180000 no mortgage, 19 years UK pension ( too many years as an expat - will pay back the last 6 years and then contribute till retirement )


Investments: ( Through HSBC Jersey, happy with performance and fees - I think)


HSBC Protfollos World Selection 4 GBP RIP 37363
Blackrock IIF United Kingdom A ACC GBP 31597
Fidelity Stering Bond Inc 30868
Franklin US Opps A DIC GBP 29330
Invesco Strling Bond 32945


Cash ( 40 k in Santander the rest just that 105000



QROPS : ( Ivest by Abbey Financial solutions, which should have been low/medium risk but now I am concerned that it is high fee (3%) and high risk

LLYODS TSB O/S FM HIGH INCOME 12 865

INTL MUTU MANSION STUDENT ACCOM SUSPENDED

FRANKLIN TEMPLETON GLOBAL BOND DIS 11769

INVESCO PERP UT MGMT HIGH INCOME 15363

M&G SECURITIES LTD INDEX LINKED BOND 12295

M&G (gsy)OFFSHORE CORP BOND 12749

RBS DYNAMIC ALLOCATOR 18 10244

MORGAN STANLEY 5Y AC FTSE 100 OIL 4644
CASH 7816

INTL MUTU MANSION STUDENT ACCOM, I understand that Regulatory Legal solicitors are trying to get some money back, has anyone any contact details.


Income is about 3k a month after tax and I can save about 2k a month of that.


Estimated retirement age is 65,
I am low/medium risk , at least I thought I was.
I would like to retire with 6-700 000 so do need some risk. What is your opinions of where I stand and what I should do?

racing_blue

Hi KNJ. Back of an envelope:

- you have about £360K in cash and investments.
- your retirement target is £600K.
- you can save £2k per month.
- you are looking to retire in about 130 months.

360,000 + (130 x 2,000) > 600,000 so hitting your goal should not be a problem.

The 3% fees on that overseas pension scheme must hurt- that's likely higher than the yield on some of the bonds it is invested in?

There may be a perfectly good reason why you want £600,000 + pension. But it makes it intriguing that you can live on £1000 per month now.

Are you a UK taxpayer?

Kit_Carson

Where are you resident and under what regulatory licence did Abbey Financial Solutions operate?
You are not the only one caught up in the Mansion Student Accomm fiasco, Regulatory Legal can easily be found on Google. Hence my asking about what licence covered the advice. Did your funds all end up in an offshore insurance bond?

Kit_Carson

racing_blue wrote: »

-

The 3% fees on that overseas pension scheme must hurt- that's likely higher than the yield on some of the bonds it is invested in?



Are you a UK taxpayer?

Fees like that are normal offshore. The "IFAs" persuade people that the advice is free, then everything goes into an investment bond with 8% commission taken, then commission is often taken on the funds that are within the bond. Often the total upfront is about 12% to the salesmen. Then you have the QROPS fees, the bond fees, the fund fees and the trail commission.

KNJ_2

Not a UK taxpayer, was in Bangladesh when Abbey approached me.
Currently in the middle east, so no chance to take advantages of ISAs or any other pension scheme.
Thanks Kit Carson, you have opened my eyes to what I thought was the case.
Ideally I would like to try and get out of the QROPS. I will be 55 this year, any advice on best exit strategy?


I was also keen to hear any views on whether people thought the investments I have were balanced and of low/medium risk? Any and all thoughts appreciated

Kit_Carson

Many people in the Middle East move there because of the low/nil tax rates. I hear that few actually retire there and yet the expats are sold QROPS when in fact many will return to the UK- making the QROPS an expensive nonsense in many cases.

A lot depends on the Double Tax Treaties with your residency and the QROPS ( if it allows encashment ). Only EU QROPS at the moment will be allowed to offer full freedom- if their local rules allow. So far, only one jurisdiction meets that criteria. You could reverse the QROPS into a SIPP if a UK SIPP provider will accept it. A short survey by a colleague suggested reluctance on the part of SIPP providers but there is at least one SIPP that will look at this but only if checked by a UK regd IFA. Again, in this case, the DTA with the UK and where you live will determine the tax on encashment.

Also, if you have been flogged and insurance bond, you need to check the surrender penalties.

Not an investment adviser, so cannot advise on the investments directly.