Prosperous soul in the making

enthusiasticsaver · 18 January 2020 at 12:15AM

Just weighing in on the pensions transfer. I gave up trying to get an IFA to sign off on it. We do have an IFA who charges us 1% on the rest of our investments but all DB pensions have to be signed off by a pension transfer specialist who charge the earth. I was told £5k minimum on a pension with a CETV of around £80k so not huge.

savingholmes · 18 January 2020 at 12:16PM

Thanks ES. I think that would have been exorbitant as a proportion of the pot. Are you now drawing your DB pension or not? If you are not - there are options out there. TBF to IFAs even where individuals have been happy with the advice given - the FCA has sued them so I can understand people running scared.

I think if I follow the advice in 'The Simple Path to Wealth' - which is use index funds (preferably global / s&P 500 etc) rather than FTSE and throw in some bonds I should be okay. I could understand the negative response if I was trying to transfer my entire pension provision - but I reckon by age 55 I will have accrued full state pension (£9.1K) plus around £11K in a separate career average pension (to draw at 67). That one I am planning to leave alone. DH is also due to get full state pension if he works until 55 - so we are set for a good retirement at 67 already. The SiPPs are just to help us retire earlier.

The IFAs were telling me all the risk of transferring on the phone - but not the potential gains of doing the transfer - so it didn't feel balanced.

I slept well last night - only just got up so feeling more refreshed.

Tasks for today:

[STRIKE]Seeing DS soon - need to wash the bedding on his bed and set up the room for him. [/STRIKE]done
[STRIKE]Dishwasher also needs packing to make the place look more respectable. [/STRIKE] done
[STRIKE]Need to look in the freezer to see if I have a joint to defrost - and potentially freeze some leftovers[/STRIKE]done - DH ate the leftovers!
[*[STRIKE]]Need to find a card for my nephew - I have a feeling I have bought him one just need to find it. [/STRIKE] Made one
[STRIKE]Seeing my wider family later - [/STRIKE]not particularly looking forward to it. 1 hour journey each way, too many people in a house, too noisy - it's like Chinese water torture - only with the reward that I will see our son. - done but only stayed 1.5 hours
Ideally I need to take two packages to the post office before it shuts - so I can get refunds
Need to persuade DH to walk the dog

savingholmes · 18 January 2020 at 1:17PM

MSE reckon I can save £158 per year moving energy supplier - trying to sort now. For some reason when our property was built - the mprn for gas wasn't recorded properly and none of my suppliers have sorted it - which gives me problems each try to move! If it goes through - I will have to pay triple in Feb - existing supplier - and double to new supplier. However we did a meter reading on the 12th - and we are in credit so at some point should get a refund. Every little helps.

Trying to persuade DH to investigate potential savings on BB.

enthusiasticsaver · 18 January 2020 at 3:29PM

savingholmes wrote: »

Thanks ES. I think that would have been exorbitant as a proportion of the pot. Are you now drawing your DB pension or not? If you are not - there are options out there. TBF to IFAs even where individuals have been happy with the advice given - the FCA has sued them so I can understand people running scared.

I think if I follow the advice in 'The Simple Path to Wealth' - which is use index funds (preferably global / s&P 500 etc) rather than FTSE and throw in some bonds I should be okay. I could understand the negative response if I was trying to transfer my entire pension provision - but I reckon by age 55 I will have accrued full state pension (£9.1K) plus around £11K in a separate career average pension (to draw at 67). That one I am planning to leave alone. DH is also due to get full state pension if he works until 55 - so we are set for a good retirement at 67 already. The SiPPs are just to help us retire earlier.

The IFAs were telling me all the risk of transferring on the phone - but not the potential gains of doing the transfer - so it didn't feel balanced.

[/LIST]

My DB2 pension (the one I considered transferring is due to pay out next month when I reach 60. I am already drawing on my DB1 pension when I retired 2 years ago. I can see why IFAs are reluctant to advise on these for fear of being sued and in my case I am not sure that transferring would have been in my best interests anyway as the CETV was only 20 times annual DB. Yours looks a lot higher.

Before using an IFA we used multi asset funds (vanguard life strategy which are popular on here). They did ok but the results from our very different portfolio now we have an IFA are good too.

We took our DB pensions early with reductions and are also drawing on our SIPPs to bridge the gap between 58 when we retired and state pension age of 66 when we both get our pensions in 4 and 6 years time. Stocks and shares isas are our back up plan but luckily we have our tax free lump sums invested or held in cash still. The early part of retirement is usually the most expensive as most are still actively doing holidays etc.

savingholmes · 18 January 2020 at 9:17PM

If I tried to draw my DB that early - the amount I would get would almost halve... As my NRA for my current one is 67, for the one I am trying to transfer is 65. I've been offered around 40x the value I would be entitled to at 65 - plus a bit.

savingholmes · 18 January 2020 at 11:36PM

Well we only went to our family event for half of the proposed time - which I am glad of as at times people were a bit snarky. Had a nice time chatting with DS tonight after we came home. He is in a much better place in himself after his time away than he was before he went. One of my sisters has offered to let him lodge at hers after graduation - for a very reasonable rate. My brother is offering him some careers guidance. So there were some positives. The little kids were noisy but very sweet. I managed to declutter 2 boxes of crafts and a couple of bags of toys and books to their house - so I am counting that as 4 out of my annual target.

We didn't eat out so that was a real win. Tea was therefore about £7 rather than the £25-30 even a takeaway would have been so that was a result. DS didn't moan about that at all either which was nice. We're having a roast dinner tomorrow lunchtime. We've cooked some gammon ready - and will also cook some lamb. Hopefully that will then keep us going for tea/lunches for a few days this week too. I had spag bol leftovers for lunch - and will happily eat that as leftovers again if someone else doesn't get there first.

DH has said he will drive DS back which is fab. Unusually for me I'm just too exhausted. DD was out with friends most of today but completely past it by the time she came back. DS has been doing his washing all evening in-between chatting to me. He wants me to take him to buy a big plant for his room tomorrow - as it is quite a cheap and nasty space. He's also going to take a mirror that DD no longer wants and some archery kit back with him. I will also send him back with a small food care package while trying not to undermine our own budget. Someone on a diary mentioned metatarsal domes - and I've bought him some to try as part of his birthday present.

DH gets paid Monday. I called him out on spending too much on food at work - as his pay gets reduced accordingly! He didn't have any overtime to hide it behind this month. Trying to stay on track mse wise.

For pooch - we've bought a special table online so we can shave the dog ourselves. We only sent her for professional grooming once and she was subdued for a week afterwards so we would rather do it ourselves. That should pay for itself with 1 or 2 sessions. She's missed us today and is now snoring half on my lap.

lucielle · 19 January 2020 at 10:22AM

I bet it feels good to have your DS back. Can't wait for my DDs to decide to come home, though I doubt 1 of them will make the UK her base.
L

savingholmes · 19 January 2020 at 9:14PM

Hi Lucielle - I only got a day with DS - but it sure feels good to know that he is back in the country and within reach. He thinks he is going to stay in the UK for the next couple of years before then considering living abroad. I took DS to buy some plants for his room earlier and then we went for a wander around a local antique warehouse. I didn't buy anything at the latter so was pleased with that. We had a nice roast dinner as a family. Then DH took him back to uni 1.5-2 hours each way and got back for 7 so not too bad

Well finally took the Christmas tree down. Still have outside lights and banister lights and wreath to remove. At least I have started. Love pretty lights though - hence my love of bottle lights too - and our reluctance to take them down.

DH and I have just shaved the dog on the new table we bought - it was so much easier with a table. Last time we did it on leather couch LOL. We will definitely just do it ourselves from now on. She looks like a puppy again!

Where's my adult sticker chart for having done the dishwasher multiple times today LOL? And the washing machine and drier?

Thanks ES for sharing your experience. Having slept on it some more, I think I am now at peace that its the right decision to move the pension money (despite not having the formal advice yet). I therefore think it is about finding someone willing to do it and at the right price. Someone on the message board has given me a suggestion - of a more fixed price type one - will see how that one goes. Really hope it works out. With that £ unless there was a major stock market crash we would be able to retire at 55 - its such a game changer. As part of the advice I will see if they think it is worth getting another quote - as if the BofE changes the base rate downwards it could impact the amount of what they are willing to offer in my favour.

We still need to be good - and persist with our plans to 1) pay off debt, 2) build EF and 3) build up sipp substantially by putting most of DH's salary into it. As an example of what we could buy house-wise when we move - for around our current house value - I could if I were free to move now - buy a 4 bed house with a flat and annexe - the latter 2 they claim they earn £11K per year on. It is hard to tell from the advert if that is from long term lets or holiday type lettings. It would be interesting to have the options... Also if DD does end up staying with us long term - it may be somewhere she could 'practice' independence. It is in a rural area - within a few miles of the coast. It's good to lift your head up and dream - especially on those days when you feel like you are wading through treacle.

Hopefully this will be a better week.