Mid 50's, not much financial clue, need to sort future? That's me!

help50

Hi, I posted this under the savings forum but perhaps it’s more suited here.
I am looking for some guidance about financial planning. I had considered an IFA but past experience has left me sceptical, could just be me, but I wasn’t convinced. I think what I need is fairly straightforward and with the knowledge on here plus a little work from me I think I should be able to work it out.
I am mid 50’s, did uni, worked ever since, brought up in an environment where people didn’t retire, they just adjusted and kept going, doing different things so retiring at eg 65 or whatever was never on my horizon. All being well, I would intend to work in current job for up to next 10 years, then do something eg 3 days per week for further 10 years, then potter around and see what happens. I often glaze over when financial products and saving mechanisms are talked about, prob as I only understand the basics and don’t have much interest in knowing more than I need to. But I recognise I need some help so turning to you good people as a result.
I have a couple pensions: Royal London with about £180k; Standard Life with about £50k. RL was set up through a previous IFA and I pay pretty little into it each month, around £150. SL is a company scheme set up by my company a couple years ago, company pays £300/m into that. I can tell you the funds etc if that’s needed.
I have a Charles Stanley £16k ISA made up of Vanguard Lifestrategy 60% and Inveso Managed Growth, I put in £100/m into the Vanguard.
I have a bit of mortgage to pay off, although we may remortgage to buy a 2nd property so that may change.
I also have around £50k of cash spread over savings accounts eg Marcus.
For the above, I want to know if I should keep the 2 pensions or combine in some way if that is better. I also want to put some more money away each month eg £500, and assume that should go into one of the pensions as opposed to anywhere else. I looked into doing this with RL and they say I can put in a lump sum ok but need an IFA to change the monthly contributions – which seems strange but what do I know.
The above is not a great pension position. But I run and part own a company which does reasonably well and I am looking to get value out of that over the next 5 - 10 years at which point I would cut back and do something else. If we can manage the exit, then I would look to take at least £500k out of that to supplement the pension.
So, in conclusion I would appreciate some help around any changes I should make to the current set up of pensions, ISAs etc, how and where I should be best putting any extra monthly contributions, and any other pointers I guess. I can’t see myself ever being a really active investor type, I am not looking to retire at eg 65, I just want to try and make sure I am doing what I should just now. Thank you in advance.

Albermarle

I can tell you the funds etc if that’s needed.

That would be a good idea.

I looked into doing this with RL and they say I can put in a lump sum ok but need an IFA to change the monthly contributions – which seems strange but what do I know.

RL do not deal with the general public directly , only through advisers . SL are happy to deal with the public ( in the jargon - retail clients) directly.

where I should be best putting any extra monthly contributions

Compared to an ISA, pensions have a tax advantage . The disadvantage is that you can not access the pension until 55 at he earliest but this is not an issue for you .

help50

Hi, the RL pension is based on Moderately Adventurous Tracker Lifestyle Strategy and the current breakdown with approx %'s is:
RLP Cash Plus 1%
RLP Property 10%
RLP Deposit 16%
RLP Short 5yr Corp Bond 10%
RLP Short 5yr Gilt 8%
RLP Short 5yr Index Linked 10%
RLP Global High Yield Bond 2%
RLP Short Duration Global High Yield 2%
RLP Commodity 4%
RLP Absolute return Govt Bond 3%
RLP/Blackrock ACS Global Blend 32%

and SL is:
Standard Life Active Plus III Pension Fund 90%
Standard Life Pre Ret (Active Plus Universal) Pn 10%

and below these headlines I can give a list of funds but there is quite a list so not sure how useful that would be! The 10% is less risk than the other and so I assume they will start to shift more into that as time goes on, I had set a retirement age of 65 on that for sake of a number.

mcc100

Albermarle wrote: »

RL do not deal with the general public directly , only through advisers .

They do, as I don't use an adviser with Royal London.

help50

Hi, given that RL won’t let me deal directly to change monthly investment, do I just accept that SL is a better home for increased payments? And I leave RL as it is? Or should I be doing something else with these pensions I wonder.

Audaxer

help50 wrote: »

Hi, the RL pension is based on Moderately Adventurous Tracker Lifestyle Strategy and the current breakdown with approx %'s is:
RLP Cash Plus 1%
RLP Property 10%
RLP Deposit 16%
RLP Short 5yr Corp Bond 10%
RLP Short 5yr Gilt 8%
RLP Short 5yr Index Linked 10%
RLP Global High Yield Bond 2%
RLP Short Duration Global High Yield 2%
RLP Commodity 4%
RLP Absolute return Govt Bond 3%
RLP/Blackrock ACS Global Blend 32%

I'm surprised that the RL pension is described as Moderately Adventurous as it only appears to be 32% equities, which I think would normally be classed as fairly cautious.

SonOf

Hi, given that RL won’t let me deal directly to change monthly investment

RL will take instructions directly. You just have to make it clear to them that you are not using an adviser.

I'm surprised that the RL pension is described as Moderately Adventurous as it only appears to be 32% equities, which I think would normally be classed as fairly cautious.

RL's Governed portfolios are time weighted into short, medium and long term. So, the OP could be in a short term version. Also, RL has the option to include lifestyle risk reduction. So, it may have started the de-risking (op is mid 50s and if age 60 is the retirement age on the plan, then it could be down to that).

snowqueen555

Your RLP looks like to nightmare to review, have you considered consolidating into a select few funds?

What fees are you paying on your pensions pots?

help50

Hi, I have mot touched the RL pension since it was set up, I assume it is managing the funds as I get older and near the retirement age. I had a retirement age set at 60 and so at the least I should probably change this to eg 65 or 67 or something. I have not considered consolidating the funds as I assume they are managing this to the lifestyle strategy - and I wouldn't know what to consolidate anyway.
As for fees, my RL statement says I have paid 0.66% of the plan value over the period Nov 18 - Nov 19.
For SL the charges are stated as 0.781%.

cloud_dog

help50 wrote: »

Hi, I posted this under the savings forum but perhaps it’s more suited here.
I am looking for some guidance about financial planning. I had considered an IFA but past experience has left me sceptical, could just be me, but I wasn’t convinced. I think what I need is fairly straightforward and with the knowledge on here plus a little work from me I think I should be able to work it out.
I am mid 50’s, did uni, worked ever since, brought up in an environment where people didn’t retire, they just adjusted and kept going, doing different things so retiring at eg 65 or whatever was never on my horizon. All being well, I would intend to work in current job for up to next 10 years, then do something eg 3 days per week for further 10 years, then potter around and see what happens. I often glaze over when financial products and saving mechanisms are talked about, prob as I only understand the basics and don’t have much interest in knowing more than I need to. But I recognise I need some help so turning to you good people as a result.
I have a couple pensions: Royal London with about £180k; Standard Life with about £50k. RL was set up through a previous IFA and I pay pretty little into it each month, around £150. SL is a company scheme set up by my company a couple years ago, company pays £300/m into that. I can tell you the funds etc if that’s needed.
I have a Charles Stanley £16k ISA made up of Vanguard Lifestrategy 60% and Inveso Managed Growth, I put in £100/m into the Vanguard.
I have a bit of mortgage to pay off, although we may remortgage to buy a 2nd property so that may change.
I also have around £50k of cash spread over savings accounts eg Marcus.
For the above, I want to know if I should keep the 2 pensions or combine in some way if that is better. I also want to put some more money away each month eg £500, and assume that should go into one of the pensions as opposed to anywhere else. I looked into doing this with RL and they say I can put in a lump sum ok but need an IFA to change the monthly contributions – which seems strange but what do I know.
The above is not a great pension position. But I run and part own a company which does reasonably well and I am looking to get value out of that over the next 5 - 10 years at which point I would cut back and do something else. If we can manage the exit, then I would look to take at least £500k out of that to supplement the pension.
So, in conclusion I would appreciate some help around any changes I should make to the current set up of pensions, ISAs etc, how and where I should be best putting any extra monthly contributions, and any other pointers I guess. I can’t see myself ever being a really active investor type, I am not looking to retire at eg 65, I just want to try and make sure I am doing what I should just now. Thank you in advance.

Does this mean you are a Director of a Ltd company? If so, are your contributions being made by the company as opposed to personal contributions?

ffacoffipawb

snowqueen555 wrote: »

Your RLP looks like to nightmare to review, have you considered consolidating into a select few funds?

What fees are you paying on your pensions pots?

My SIPP is even more risky (over LTA so not crystallising until 75 in 2039) with equal investments in ...

Baillie Gifford Global Alpha Growth Class B - Income (GBP)
Baillie Gifford Global Income Growth Class B - Income (GBP)
Baillie Gifford Managed Class B - Income (GBP)
Baillie Gifford Responsible Global Equity Income Class B - Income (GBP)
BlackRock Consensus 100 Class I - Accumulation (GBP)
CFP SDL UK Buffettology General Income - Income (GBP)
EdenTree Higher Income Fund Class B - Income (GBP)
Fundsmith Equity Class I - Income (GBP)
HSBC Global Strategy Adventurous Portfolio Class A - Accumulation (GBP)
Jupiter Global Value Equity Class X - Income (GBP)
Legal & General Multi Index 7 Class I - Income (GBP)
LF Blue Whale Growth Class I - Income (GBP)
LF Lindsell Train UK Equity Class D - Income (GBP)
Lindsell Train Global Equity Class D - Income (GBP)
TB Evenlode Global Income Class B - Income (GBP)
TB Evenlode Income Class B - Income (GBP)
Troy Trojan Income Class X - Income
Vanguard Life Strategy 100% Equity - Income

The ride will be fun.