(lack of) retirement planning

Alexland

db75 wrote: »

also i have already invested 20k in a cash isa this year - i have read you can move some to stocks isa but has to be the whole amount so i might need to start with the life strategy fund until april

Yes current year contributions must be moved together but previous year contributions can be moved in part. Just remember to use the new ISA manager's transfer process and give clear instructions.

db75 wrote: »

thanks alex, ill do some reading form the links you have supplied, If in the end I dont feel confident, can I ask for recommendations for a trusted IFA ?

You can ask but I don't know any (apart from a few here who don't take business via this forum anyway) and you might be better finding one in your local area.

Alex

atush

Geez Louise.

I have never had a pension - and over the years have seen a couple of financial advisers but have never found anyone i trust and have a natural suspicion of shares and to be honest the financial industry!

So are you incorported as an LC? Or self employed? Do y like paying too much tax? Do yiu have an accountant for your compay> If you do, he isnt a good one you not have mentionned how good a pension is.

Tax relief, lower corporation tax, free money in essence.

It is frightening you are just asking this now And were frightened about pensions- which are essentially a good way to save money and not pay tax on it.

Or were you thinking of storie from a decade or 2 before abot people who werent self emploed losing money because their employers went bust? Which hs nothing to do with someone like you?

at best, you have been paying BR or higher rate tax on all those savings ou have nothced up. Imagine had you ised a pension they would be 25% higher?

100 into a pension cost you only 80 if you pay BR tax. HR- it coats you only 60. Number are different (but still favorable) if you are a company rather than self employed.

atush

db75 wrote: »

st james' place is the company i saw, but they wanted 5k to invest my isa and more troubling was the negative press I read

Well done to avoid this lot. They are poor value

atush

Stocks and shares if individual ones ca be high risk.

But you can invest your Isas (and pension) in FUNDS which are collective investments- so there are 10s if not hundreds of indivdual stocks owned by each fund or trust. So you are protected shold one individual company go bust or just take a hit in price

atush

thanks dunston, im a limited company.

Yikes. Do you have an accountant? If you do, you may need another one. Any decent one would know that having a pension for you (and othe r directors) would save the company tax.

dunstonh

thanks dunston, im a limited company.

In which case, you are not self employed. And you have been missing out big time as directors can benefit massively using pensions. A pension contribution not only is a business expense, saving corporation tax, you also get money out of your business without paying tax and NI or dividend tax.

Two people have suggested vanguard already so thats promising. Do they offer advice too?

It is an option but not necessarily the best one. We recently stopped recommending some of their funds. Certainly nowhere near the worst one. They do not offer advice. Advice should only be sought and given by IFAs. Not FAs or restricted agents. If Vanguard gave advice they would not be independent. You can buy Vanguard funds via an IFA though or through a DIY provider.

You are possibly still thinking of investments as they were 10-20-30 years ago. Today, a modern pension or S&S ISA can have access to over 30,000 investments. You can have an Aviva pension and invest in Standard Life funds or vice versa. Its not all tied in with one company nowadays.

db75

LTD company....i have raised pension benefits with my accountant before and he has ended up talking me out of it. now at 43 and coming close to the end of my career, or at least the part where i will earn anything significant. I believe you can get tax relief on 4 previous years though so i suppose still worth doing?

he is not great but im only learning now how poor.

pensions will be another minefield!

db75

Financial **ck wit!

Gah. At least I can try address it now. Starting with a stern conversation with the accountant.

Followed by a search for decent pension and investment advice

atush

Yes, if he talked you out of a pension, then he is a poor accountant. Gt another one.

As for IFAs, make sure of the I. A persoanl recommendation from someone who uses one is best but there are other ways to find one such as unbiased.com. See a couple, then choose one you like best (fees, comfortable with t he way they explain your options etc).

You can come back here and discuss the charges and advice if you want.

BLB53

Im not interested in risking capital but Im concerned that over time inflation will deplete the value of savings, I don’t know anyone who has ever really had any money to invest so I’m at a bit of a loss for financial advice.

Setting up a simple pension plan does not really need a financial adviser. You could set up a SIPP with the likes of AJ Bell Youinvest and then start to invest into a simple one stop multi index fund such as lifestrategy 60...60% global equities and 40% bonds. So far since launch in 2011 it has an average annual return of 9.5% p.a.

In addition to growth from the fund you will get 25% extra from HMRC on your initial contributions (more if you are HR tax payer).

If you think this might be a possiblility have a read of Edwards 'DIY Pensions' book and then decide