Pension Planning in Retirement

Wurly

I'm still trying to decide where to put my pension pot.
Are these Royal London Governed Portfolio funds available to diy platform or from an FA?

Hal17

jamesd wrote: »

URL="https://forums.moneysavingexpert.com/discussion/comment/70696736#Comment_70696736"]Guyton's rules for sequence of return risk taming[/URL] look sensible and the rest of my initial posts in that topic contain my core suggestions. Guyton didn't go as low in equities as he could have because he was concerned that customers wouldn't like very big swings. You don't have to use that real world IFA customer reaction constraint and can go lower equity if you like.

Thanks James I will follow your link and have a read through. This forum is really helpful and all the people like yourself who give advice is great.

Hal17

Wurly wrote: »

I'm still trying to decide where to put my pension pot.
Are these Royal London Governed Portfolio funds available to diy platform or from an FA?

I think they are only available through a FA.

kidmugsy

jerrysimon wrote: »

I remember being told that if you are retired and pay tax, be thankful.

Jerry

If you're paying tax you're still alive.

kidmugsy

OldMusicGuy wrote: »

A Inflation only impacts you if you spend a lot on consumer goods.

Almost exactly wrong, I'd say. It's consumer goods - in particular electronic goods and clothing - that have inflated least in recent years. That's why wags refer to the CPI as the 'Chinese Price Index'.

kidmugsy

OldMusicGuy wrote: »

It's only thanks to this forum that I even know who Wade Pfau is.

A note for Pfaufans everywhere: he's just started a new series of three articles on a new (for him) way to look at the allocation of stocks:bonds in a retirement portfolio.

https://www.advisorperspectives.com/articles/2017/03/27/time-segmentation-as-the-compromise-solution-for-retirement-income

atush

dunstonh wrote: »

Going more aggressive after a high growth period means you have missed out on those gains and could then suffer increased losses when the next crash comes. (when being unknown). Are you chasing returns or do you genuinely feel you can accept that higher risk level now?

I agree, what has changed between being given the advice you didnt take and now?

Hal17

atush wrote: »

I agree, what has changed between being given the advice you didnt take and now?

You are right, I did miss that opportunity and my attitude to risk has not changed.

Don't get me wrong I am happy with how our retirement income has performed over the last 4 years. This includes a spread of pensions, share dividends, cash ISA's, savings and premium bonds. Our net worth has increased over this period and yet we have done all the things we wanted to do and spent money on house repairs, so good news.

What made me post my first message, was my thoughts after reading recent posts about having too much invested in cash and how inflation will erode this over time. I was thinking I could perhaps increase my risk level a little by moving my Royal London pension to their
Governed Portfolio 6 fund, which is more long term.

Having lost a big slice of my pension contributions with Equitable Life many years ago, I now tend to think, let sleeping dogs lie and just be happy that our income is higher than our expenditure.

OldMusicGuy

jamesd wrote: »

Guyton's rules for sequence of return risk taming look sensible and the rest of my initial posts in that topic contain my core suggestions. Guyton didn't go as low in equities as he could have because he was concerned that customers wouldn't like very big swings. You don't have to use that real world IFA customer reaction constraint and can go lower equity if you like.

James, thanks so much for that thread. It is bookmarked on my PC and it is one of the most useful things I have read in years. Far more useful than a paid consultation with a financial adviser that I had a couple of years ago. But please don't start charging for your posts!

kidmugsy wrote: »

A note for Pfaufans everywhere: he's just started a new series of three articles on a new (for him) way to look at the allocation of stocks:bonds in a retirement portfolio.
https://www.advisorperspectives.com/articles/2017/03/27/time-segmentation-as-the-compromise-solution-for-retirement-income

Thanks very much for the links. I will be reading those when I have some time. Sadly spending this weekend working..... (corporate wonk there).

kidmugsy wrote: »

Almost exactly wrong, I'd say. It's consumer goods - in particular electronic goods and clothing - that have inflated least in recent years. That's why wags refer to the CPI as the 'Chinese Price Index'.

Maybe I phrased it poorly but I still believe I can ignore inflation in terms of financial planning for at least 10 years unless it gets to silly levels, which is unlikely IMO (but never say never, I lived through the 70s...). Looking at the basket of goods used for CPI, we can choose how much we spend on everything everything except utilities, fuel, broadband and council tax. So we can keep expenditure within our means and in fact we are planning that it will drop considerably as we'll be adopting the Escape Artist/MMM philosophy. Longer term though it cannot be ignored.

atush

Hal17 wrote: »

You are right, I did miss that opportunity and my attitude to risk has not changed.

Don't get me wrong I am happy with how our retirement income has performed over the last 4 years. This includes a spread of pensions, share dividends, cash ISA's, savings and premium bonds. Our net worth has increased over this period and yet we have done all the things we wanted to do and spent money on house repairs, so good news.

What made me post my first message, was my thoughts after reading recent posts about having too much invested in cash and how inflation will erode this over time. I was thinking I could perhaps increase my risk level a little by moving my Royal London pension to their
Governed Portfolio 6 fund, which is more long term.

Having lost a big slice of my pension contributions with Equitable Life many years ago, I now tend to think, let sleeping dogs lie and just be happy that our income is higher than our expenditure.

Have you considered opening a new DC pension, and putting in up to 2880 PA and that gets grossed up to 3600? An immediate profit (you can even keep it in cash) or you could use this tiny pension to invest in something higher in risk like 100% equity global tracker. If this is money you wont touch for 5-10 years, the ups and downs should be limited by the initial pot size, and should be up over all after a decade.

Could give you a little taste, and could give you a learning opportunity?