Is this good advice?

EdGasket

There are strings attached to the Santander account; it's not just a simple high-interest account. For the Santander one you have to transfer all your direct-debits to them in addition to juggling money back and forth all the time. Santander also have very poor reviews, google it; do you want all that hassle?

https://uk.trustpilot.com/review/www.santander.co.uk

Your IFA is worried about a market fall, but the market could go either way. FTSE is already down at least 15% from it's peak. I wouldn't have thought annuities are a good buy right now with interest rates so low and certainly not if you get out less than you pay in; what's the point?

greenglide

you have to transfer all your direct-debits to them i

No you dont.

You can move them so that you benefit from the cashback and it makes sense to offset the monthly charge but there is no compulsion.

jamesd

stevet2607 wrote: »

My IFA is obviously concerned that markets could fall soon, but I have not yet discussed his detailed plans.

Yes, so am I and I've been acting on that risk.

I wouldn't actually be unhappy to see you 100% in cash for a while but I think that more in P2P offers a better deal. Your IFA is unlikely to be willing to recommend P2P because it lacks FSCS protection so it will undoubtedly be considered to be high risk. That lack of FSCS protection is why diversification across P2P platforms as well as loans matters, the biggest risk of loss is fraud at a platform, not individual loans going bad.

There's absolutely nothing wrong with deciding that markets look a bit toppy and that you're going to stick to cash for a year. Just don't do it forever.

Integrating short term issues with long term risk tolerance and capacity for loss can also be a challenge. The IFA has to somehow assess your longer term willingness to see ups and downs with any view that now is not a good time to be in equities because of the current facts about those markets. That can be a challenge because the traditional view of reluctance to invest in equities is low risk when it may just be a short term tactical decision that even I with a high risk tolerance have been inclined towards recently.

jamesd

EdGasket wrote: »

For the Santander one you have to transfer all your direct-debits to them-

I have that account and others at two other banks, I have not transferred all my direct debits to them, just the ones where I get paid by them for those DDs.

EdGasket wrote: »

in addition to juggling money back and forth all the time

A standing order to move money once a month is not a lot of juggling and normal incoming transactions might take care of it anyway.

EdGasket wrote: »

Santander also have very poor reviews, google it; do you want all that hassle?

Santander have been notably improving over the years, from back in the Alliance and Leicester days when I first opened an account there. In my case that's also been helped by the amount of money going into and out of my account causing them to upgrade it to their select standard so if I do have a question I now rapidly get a well informed and helpful human when I call.

grey_gym_sock

jamesd wrote: »

A purchased life annuity can only be purchased with money that has already been taxed. So 100% of the £66,750 is tax free already because it's drawing on already taxed money. Not part of it, the lot. Then there's the interest on the money that would be taxable, though maybe not actually taxed.

oops, good point - i wasn't thinking there ...