Decision time on finances

Thrugelmir

Stravinsky wrote: »

So .... has anyone been in a similar situation, or is concerned about the brexit effect ... and has anyone found a solution.

A fully diversified portfolio. When investing expect the unexpected. As it's what's going to happen that isn't forecast that will be the biggest iceberg you may encounter.

skcollo

eskbanker wrote: »

I think the point was that it should be regarded as the same story, i.e. why pay an IFA a monthly fee but then come to a public web forum when you're looking for independent financial advice!

I sort of wondered what 22% of Stravinskys income was being spent on.

I'm only guessing, of course, but it might be as much as a yearly chat to say the underlying investments were performing around the average.

"IF" Stravinsky just severed ties with his IFA and posted his holdings on here he would get "comments/views", or he could simply sit where he is invested and learn to be his own unqualified IFA.

Stravinsky

skcollo wrote: »

I sort of wondered what 22% of Stravinskys income was being spent on.

I'm only guessing, of course, but it might be as much as a yearly chat to say the underlying investments were performing around the average.

"IF" Stravinsky just severed ties with his IFA and posted his holdings on here he would get "comments/views", or he could simply sit where he is invested and learn to be his own unqualified IFA.

Heh heh, you're remarkably right. Once a year I have a review meeting. I'm not sure anything will change, unless I change my attitude to risk. Because of my age / approaching retirement its in lower risk investments.

I understand totally your last comment, and it is very true ... those are my choices, but I dont think I have the knowledge or experience to make those investment decisions on my own.

Shashy

Stravinsky wrote: »

I understand totally your last comment, and it is very true ... those are my choices, but I dont think I have the knowledge or experience to make those investment decisions on my own.

Then don't make the decisions; copy and paste the portfolio your IFA has put together for you. Voila - no IFA fees.

deeplyblue

I've taken the view that by the time I reach 80 my financial needs will be a lot less than now, as my wife is 4 years older than I.

This is where your analysis and mine diverge. I rather expect that the last years of life will be the most expensive.

Have you decided how you will expect your wife to finance your care if you develop dementia and need to go into a nursing home, or vice versa? If you want privately financed care, then the costs are truly frightening and can go on for years. Maybe the sale of your home would finance your care - maybe not. Maybe home care would work, but that doesn't always pan out either.

My late father-in-law went into private care at a cost of £800/month. That was 10 years ago. Now all costs in the care sector are rising and will only get worse with Brexit and the withdrawal of East European labour.

You may have all this factored into your plans - or you may be gambling that you won't have to worry about that. I may be stepping over the bounds of "constructive comment", if so I apologise, but I would suggest that you take a look at this issue.

Stravinsky

Shashy wrote: »

Then don't make the decisions; copy and paste the portfolio your IFA has put together for you. Voila - no IFA fees.

I already looked at that, thanks as its a valid suggestion. I find that some of the funds require a minimum figure of £100k, hence why that wouldnt work for me. I guess an IFA either has multi people in a fund or has special deals with them

Stravinsky

deeplyblue wrote: »

This is where your analysis and mine diverge. I rather expect that the last years of life will be the most expensive.

Have you decided how you will expect your wife to finance your care if you develop dementia and need to go into a nursing home, or vice versa? If you want privately financed care, then the costs are truly frightening and can go on for years. Maybe the sale of your home would finance your care - maybe not. Maybe home care would work, but that doesn't always pan out either.

My late father-in-law went into private care at a cost of £800/month. That was 10 years ago. Now all costs in the care sector are rising and will only get worse with Brexit and the withdrawal of East European labour.

You may have all this factored into your plans - or you may be gambling that you won't have to worry about that. I may be stepping over the bounds of "constructive comment", if so I apologise, but I would suggest that you take a look at this issue.

Valid points, and yes I have thought of it. Having researched it, there is little I can do wiith funds to take account of that eventuality, for as you say the cost is so high. So if it ever came to that point under current legislation it WOULD probably end up with my property being sold to cover the costs, but even that wouldnt last too long. I've looked at it in relation to a close relative recently, and if that happens they would slowly be stripped of everything they have to cover care costs until there is little left and then the state kicks in.

woody_56

Stravinsky wrote: »

Valid points, and yes I have thought of it. Having researched it, there is little I can do wiith funds to take account of that eventuality, for as you say the cost is so high. So if it ever came to that point under current legislation it WOULD probably end up with my property being sold to cover the costs, but even that wouldnt last too long. I've looked at it in relation to a close relative recently, and if that happens they would slowly be stripped of everything they have to cover care costs until there is little left and then the state kicks in.

Hi I'm in the same boat as you I have a portfolio of all Inv trusts.
Probably the top 10 dividend payers and cash.
I notice you talk about selling your property WHY?
My Sister and I have just done a power of attorney on my my
Very smart 91 year old father.
We have all agreed that we will rent his flat and that will pay towards his care if needed?
That leaves his asset to us when he passes.
We bought the flat for him in the first place and he has lived rent free for almost 25 years and payed his own service charges.
To many people think selling is their ownly option?
And that's the way most Counclis would like you to think.
Rent from the property and pensions both private and goverment
plus the Councils mandatory contribution should get you somewhere
near the exorbitant costs needed.
Rent?...?..? First.
Jim

AndyT678

Stravinsky wrote: »

I already looked at that, thanks as its a valid suggestion. I find that some of the funds require a minimum figure of £100k, hence why that wouldnt work for me. I guess an IFA either has multi people in a fund or has special deals with them

£100k minimum is probably to invest directly with the fund manager but they're all probably available on most of the common platforms. If you post a list someone will probably check for you.

AnotherJoe

Stravinsky wrote: »

I already looked at that, thanks as its a valid suggestion. I find that some of the funds require a minimum figure of £100k, hence why that wouldnt work for me. I guess an IFA either has multi people in a fund or has special deals with them

I suspect you've got that wrong.

However, if I'm correct, that does indicate you might need an IFA

Can you name a few of these funds?