Pension Planning in Retirement

Hal17

atush wrote: »

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?

Ha ha a light bulb moment for me, thanks Atush. Never considered that option at all, was just going to put the £2880 into my Royal London pension as I normally do.

As you say this could be the thing that satisfies the higher risk option that I have been thinking about and allows me to have that learning experience outside of my comfort zone. I really like that idea and of course a £720 profit straight away.

atush

that what we are here for Hal lol.

And if you want to carry on with this next tax year (as you still have time to open one this year) you can drip feed the money in monthly, instead of putting in a lump sum. that way, should prices fall you get more units per pound. This can lower the overall risk/volatility a bit for your nerves

Look up Pound Cost Averaging.

Hal17

Thanks Atush - after your nice comment, I will post further, ha ha.

I have finally opened my very first S&S Isa with Charles Stanley Direct today. I thought I would do this rather than open a new DC pension as you kindly suggested.

I intend to change my Royal London Governed Portfolio 3 - Cautious/Moderately Cautious short term fund to one of their Governed Retirement Income Portfolios and will add the £2880 into this once its moved over.

So going back to the S&S ISA, I thought I would invest £500 a month which is the lowest I can do on Charles Stanley and go a bit adventurous - new territory for me and it is money I can afford to play with, so no sleepless nights.

I thought I would go for the following 4 tracker funds, although I know the 2 Vanguard are very similar, so might change this.

Vanguard FTSE Developed World Ex UK Index Acc - 40%
Vanguard Lifestrategy 100% Equity Fund Acc - 40%
Black Rock Emerging Markets Equity Fund Acc - 10%
Black Rock Global Property Equity Tracker Acc - 10%

Wearing a tin helmet, waiting to be short down. Any thoughts are greatly appreciated. Still reading and looking - so have not committed yet. Cheers.

AlanP_2

Hal17 wrote: »

I thought I would go for the following 4 tracker funds, although I know the 2 Vanguard are very similar, so might change this.

Vanguard FTSE Developed World Ex UK Index Acc - 40%
Vanguard Lifestrategy 100% Equity Fund Acc - 40%
Black Rock Emerging Markets Equity Fund Acc - 10%
Black Rock Global Property Equity Tracker Acc - 10%

Wearing a tin helmet, waiting to be short down. Any thoughts are greatly appreciated. Still reading and looking - so have not committed yet. Cheers.

As you say the two Vanguard Funds really do overlap with each other so you don't need both.

Personally I would go with the VLS100 and add the EM & Property one as well (although note that the property one is Property Shares as opposed to physical property so isn't adding to your diversification) plus maybe a bit of a Small Cap fund as well.

Have a look at the Slow & Steady Portfolio on monevator.com as well as the other articles on there about diversification to help you think through your approach.

atush

I thought you were tempted by the 720 tax relief for the pension? You could always do both the ISA and the DC pension.

Anyway, have fun.

Hal17

atush wrote: »

I thought you were tempted by the 720 tax relief for the pension? You could always do both the ISA and the DC pension.

Anyway, have fun.

Yes doing both. Thanks again.

Alan - thank you for your reply, I will look at the link you provided.

OldMusicGuy

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 for the link, finally got around to reading these (there were 2 of the 3 articles available). I realise this is what I have been doing and this gives me good reasons to continue my planning with confidence. It definitely suits my safety-first mindset.

kidmugsy

Hal17 wrote: »

Yes doing both. Thanks again.

Some time before we retired we diversified our SIPP and ISA investments by putting some money into Gold ETCs and Silver ETCs.

The gold has done reasonably well, and the silver better yet. They seem to me to be a useful diversification from equities, especially when the other obvious diversifications, index-linked gilts, look terribly unattractive. We have not only diversified over the two precious metals but also over the companies that run the ETCs, and the SIPP/ISA providers.

Even golden eggs shouldn't all be in one basket.

Turtle

Hal17 wrote: »

Thanks Atush - after your nice comment, I will post further, ha ha.

I have finally opened my very first S&S Isa with Charles Stanley Direct today. I thought I would do this rather than open a new DC pension as you kindly suggested.

I intend to change my Royal London Governed Portfolio 3 - Cautious/Moderately Cautious short term fund to one of their Governed Retirement Income Portfolios and will add the £2880 into this once its moved over.

So going back to the S&S ISA, I thought I would invest £500 a month which is the lowest I can do on Charles Stanley and go a bit adventurous - new territory for me and it is money I can afford to play with, so no sleepless nights.

I thought I would go for the following 4 tracker funds, although I know the 2 Vanguard are very similar, so might change this.

Vanguard FTSE Developed World Ex UK Index Acc - 40%
Vanguard Lifestrategy 100% Equity Fund Acc - 40%
Black Rock Emerging Markets Equity Fund Acc - 10%
Black Rock Global Property Equity Tracker Acc - 10%

Wearing a tin helmet, waiting to be short down. Any thoughts are greatly appreciated. Still reading and looking - so have not committed yet. Cheers.

Very interesting thread. Just wanted to highlight the bit in bold above. The minimum a month you can invest with CSD is actually £50 and not £500.

Hal17

Turtle wrote: »

Very interesting thread. Just wanted to highlight the bit in bold above. The minimum a month you can invest with CSD is actually £50 and not £500.

Thank you Turtle, I did see that you could do £50.00 as a monthly contribution, but that only allowed me to do it as 10% of the total contribution. So when I adjusted my fund basket to 100% it came out at £500.

Also it did state that a single fund contribution was a minimum of £500.

I am still working on what funds to purchase.