Could anyone comment on taking a CETV who has done it??

Thrugelmir

fjh wrote: »

At the moment I use an IFA but not touched portfolio in 18mths I have had it.

Out of curiosity what's the broad asset allocation between sectors?

TBC15

happyandcontented wrote: »

Unfortunately, both are held by one spouse.

Would a tactical divorce help?

happyandcontented

TBC15 wrote: »

Would a tactical divorce help?

I agree, it is unfair that you cannot transfer pensions between spouses, but we have been happily married 38 years and that really isn't an option.

fjh

Thrugelmir wrote: »

Out of curiosity what's the broad asset allocation between sectors?

BMO MM Navigator Cautious D Acc 6.31%
Jupiter Merlin Income Portfolio I Acc 5.88%
Quilter Investors Cirilium Balanced Portfolio R Acc GBP 5.67%
Quilter Investors Cirilium Conservative Portfolio R Acc GBP 5.63%
Threadneedle Managed Equity & Bond ZNA GBP 5.88%
Vanguard LifeStrategy 40% Equity A Acc 5.97%
Pru PruFund Cautious Fund Pn Ser A 15.95%
Pru PruFund Growth Fund Pn Ser A 48.71%

Welcome any thoughts /comments

happyandcontented

fjh wrote: »

BMO MM Navigator Cautious D Acc 6.31%
Jupiter Merlin Income Portfolio I Acc 5.88%
Quilter Investors Cirilium Balanced Portfolio R Acc GBP 5.67%
Quilter Investors Cirilium Conservative Portfolio R Acc GBP 5.63%
Threadneedle Managed Equity & Bond ZNA GBP 5.88%
Vanguard LifeStrategy 40% Equity A Acc 5.97%
Pru PruFund Cautious Fund Pn Ser A 15.95%
Pru PruFund Growth Fund Pn Ser A 48.71%

Welcome any thoughts /comments

Would you share the details of the IFA?

grocerjack

bostonerimus wrote: »

Why are you carrying this debt at all? If you are paying regular interest rates on it you should pay it off.

Because we still have 12 years on the mortgage left. Why would we not use the money to fully own a house we've lived in for 20 years?

No they just say that there is a certain probability that something will occur. You must always plan for reasonably probable scenarios....and for people in the UK you age that's living well into you 90s, maybe even 100.[/QUOTE]

It's still just a statistic. I'd rather plan for events like dementia etc...the sort of things you can't really leave to a stat.

This is what life insurance is for.[/QUOTE]

My life insurance doesn't cover the pension pot fund, and if we both die the money for each of us dies with us.


The primary function of a pension is to fund retirement, not provide an inheritance pot. The inheritance might be a nice extra if things go well, but it should not be a driving factor in most people's retirement as they don't have a large pension pot surplus when compared with the income they need to generate and the risks involved. [/QUOTE]

It's a choice. And quite a nice one to have even if you don't take the option. I want to use the money sensibly, provide a semi-decent retirement income bearing in mind I also have a DC fund, and a state pension in 7 years. The estimate on first view is a pension of circa £30k from this for 30 years, £12k from DC if I work to retirement and what...£10k pension by the time my state one kicks in. £50k doesn't sound shabby to me if the house is paid up. But also we have my wife's pensions as well. So it doesn't look too bad in comparison to large swathes of the population.



Return/risk and portfolios have to be balanced against income needs, sequence of return risk, inflation and inheritance. Sometimes people are too conservative. [/QUOTE]

Agreed, but the older you are the more 'conservative' and risk averse you're likely to be. Middle of the road is fine. Ny DC fund is all into medium risk investments and is doing nicely.



For a male and female couple in their 60s today there's over a 10% chance that one of you will live to 100. So your plan should include that. Also anyone doing CETV will not have experienced a market crash yet and you should check in with your friends when stock prices decrease by 30% or more just before they have to make a withdrawal if they haven't planed for that.[/QUOTE]

10%? Wow. Would you cross the road on a 10% chance you wouldn't get run over? Agree on the market crash aspect though, and yes it's a worry, but the IFA and Wealth team come very highly rated by 3 of my friends from work and my brother who did this last year. Word of mouth is always quite powerful and my dealings thus far have been very forthright but good. It's not like I'm doing this without researching it. And I still haven't hit the 'go' button until I see the figures in front of me to compare with the DB forecast.

Mick70

nobody (or tiny minority) can predict a market crash/slump , no matter how good an IFA they say they are, this is always the one risk of a switch to DC , it may never happen in our lifetime but nobody can guarantee that, just my opinion of course

grocerjack

happyandcontented wrote: »

We have had advice, one advisor was dead against even looking at it, one was all for it, and one will go through the process but is not particularly enthusiastic. We gave them all the same details/facts. Two were independent, one was via HL.



See above as to why we are in a quandary!!

We feel exactly like you with regard to inheritability.

Like you, we have run the figures and thought about it very seriously. We are leaning towards just doing it and hoping we don't regret it.;)

Finding an advisor who is suitably qualified is tricky too, and we feel that a lot of them want to protect themselves which may cloud their judgement.

Would you mind sharing the name/location of the advisor you used? (by pm if you prefer)

I will PM you. The one I'm using has dealt with a friend and my brother as well.

Albermarle

nobody (or tiny minority) can predict a market crash/slump , no matter how good an IFA they say they are, this is always the one risk of a switch to DC , it may never happen in our lifetime but nobody can guarantee that, just my opinion of course

Well market crashes tend to come along at regular intervals , although there has not been one for over 10 years . So the strong likelihood is that there will be a market crash during the next 20 years , probably a couple . The 'trick ' is to be prepared for them and don't panic.
If you are relying on a DC scheme , then the main tactic is to stop with drawing from the fund as much as possible , ideally stop altogether, until markets/ the fund recovers. This is to stop the so called 'sequence of returns ' risk . In reality it means if you can fund your income from another source for a couple of years ( cash savings?) then you should be able to live through any normal market crash without too many problems . A prolonged slump would be an issue but unlikely to happen, but not impossible.

grocerjack

This chimes with everything I've been told, even from within the company providing my DC scheme. I have some retired friends who did this when it was first allowed. Since retirement their living costs have dropped as they have gone down to one car - a hybrid, neither need to travel to work and both live comfortable but not ostentatious lives. They had solar panels fitted so domestic fuel bills have dropped as well. They basically live off their state pensions and draw down for the odd holiday or new suite etc.

Again, if you're aware of the risks then you can go some way to preparing for them.

It's an intriguing thread, and proving very useful for the information being provided.