Read our cookies policy.
mcc100 wrote: »
Apologies if the answer is fairly obvious, but I just wondered what the procedure is for taking part of my TFLS from this fund when I'm 55 in a couple of months time.
Are units within the fund to the value of the TFLS sold?
1. The bulk of this portfolio is in RLP Global Managed. Why has it underperformed it’s benchmark year in, year out? It’s otherwise tracking the benchmark, just a few percent below each period. Why would I not invest in the benchmark instead?
2. The fund is classified as “balanced”/“moderately cautious”/“moderately adventurous”
Balanced funds typically have at least 40% bonds. This fund has 20% bonds; the rest is in highly volatile assets, such as industrial property, commodities and stocks. What’s the potential for a drawdown and how it corresponds to my risk tolerance?
3. How do you justify recommending an investment with over 50% in a single market (UK).
SonOf wrote: »
It can vary with providers but typically you sell the investments down to allow the part of the fund you are crystallising (4 times the lump sum you are taking) and that is moved into a separate segment within the pension to allow your uncrystallised funds and crystallised funds to be kept apart.
You are on a Royal London thread, So, all you need to do with them is a form and they do the rest.
mcc100 wrote: »
Thanks SonOf. My investment is in RL Governed Portfolio 5 so it should be fairly straightforward then. I assume that I don't have to wait until my 55th birthday to crystallise the part of the fund necessary to take my lump sum.
cfw1994 wrote: »
er....surely no: "Pension freedoms" only allows you to access them after 55
Unless you mean "can you post the paperwork in advance?", in which case perhaps you can, but they shouldn't act on it until you are 55.
I think there are exceptions for people who are seriously ill.
The fund is lower risk than the benchmark and as the portfolio is volatility targetted, that will be intentional.
GP5 has 24.6% UK equities. Not over 50%.
Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support