Can I /you get hit by LTA twice ?

Mick70

jamesd wrote: »

It's well below the UK safe withdrawal rate so it should work for some cases worse than anything seen in the last century plus.

I have sent you a message james , hopefully the link works

thanks
mick

jimi_man

Malthusian wrote: »

In short, the fact that Jamesd would transfer out doesn't necessarily mean you should. People down the pub say what they would do, only a paid professional can give advice on what you personally should do. Unless you are paying them money and they are liable for the outcome then they are talking about what they would do.

To be fair, that's been done, but it seems that the answer was not quite what was wanted....!

jamesd

Malthusian wrote: »

Jamesd once told someone with Power of Attorney for their 97-year-old father that she should spank the funds he needed to pay his nursing home fees into P2P loans paying 12% (which means the Lendy / Collateral end of the market).

That would be Care Annuity advice from 08/2017 and where I wrote that buying an immediate needs annuity appeared useful. I also wrote:

"we don't know enough about his current income, property value and anticipated spending to know how much of a challenge the income need is. We also don't know how expensive buying annuity income for him will be and that needs to be known as a critical part of any comparison of options. Some purchasing of annuity income could well be a useful part of the mixture, notably if sufficient income can't be generated without using up the capital spent on the purchase. Or we could find that it's sufficiently unchallenging that investment mixtures with high amounts of cash or only partial equity release could do the job, with no guaranteed loss of capital.

A key reason for mentioning P2P at an early stage is that a lot of people don't realise the sort of income levels that are available. How much P2P, if any, should be used, will depend on the rest of the circumstances, notably the difference between income and income need, and we don't know that yet. We might find that the home is sufficiently valuable that a wide range of investment mixtures can be used and P2P might not even be a useful part of those mixtures sometimes.

It's also entirely possible that he is able to make financial decisions and won't want capital spent on an annuity, preferring investments to spending capital on one. Preserving capital for inheritance is a very common preference and it's something that rebecca1 will have to consider as well, because his preference might be contrary to her own. Similarly, he might not want his home sold, preferring equity release while he's alive, even if that looks like a less good option overall.

At the moment I think from the description of his situation we have so far that covering some part of his income need with an immediate needs annuity is quite likely to be sensible, but that will depend on the balance between assets and the amount of extra income needed. We'll have to wait for more information from rebecca1 to form opinions on that."

There's no chance that I would have recommended Lendy in 2017 because when I did more than a quick look at them I recommended not using them, from 2 Aug 2016 onwards. Someone who'd invested before that then left would probably have made money. I might, though, at that time have included Collateral as part of a mixture and did include them as 10% of a mixture of seven different P2P firms to consider using that I wrote about in 09/2017. Of the seven, one failed with apparently fraudulent FCA register entry and changes to markets and regulation have caused two others to start to run off their P2P activity.