'Medium' DC Pension strategy

Linton

bearshare said:

Linton said:

bearshare said:

Steve_666  and ader42
But both of your suggestions need someone to select which funds, and to, maybe, take the blame if/when markets slide. Which (lacking an IFA) would be me. I am happy enough selecting an HSBC All- World or Vanguard Lifestyle 60 for MY portfolio, but suggesting it, and suitable cash holding for someone else is a different kettle of fish.

Yes investing for friends and relations is to be avoided - when the investment suffers in the next crash it will be your fault and relationships could be damaged.

Depending on what they want to do with the money, one appropriate solution could be an annuity now that interest rates are higher.  No risk, no knowledge, and no effort required and I guess no need to transfer.   They may well be able to find an IFA to help them choose something suitable.

Exactly, to first part.
Yes, annuities are looking a bit better values now. But c.4k per year, versus a wodge in the bank for emergency repairs etc...  May take some selling.

They dont have to do the same thing with all their money. Keep the tax free lump sum for emergencies and put the rest into an annuity?

Like I said, it really depends on what they want the money for.  

Albermarle

bearshare said:

Linton said:

bearshare said:

Steve_666  and ader42
But both of your suggestions need someone to select which funds, and to, maybe, take the blame if/when markets slide. Which (lacking an IFA) would be me. I am happy enough selecting an HSBC All- World or Vanguard Lifestyle 60 for MY portfolio, but suggesting it, and suitable cash holding for someone else is a different kettle of fish.

Yes investing for friends and relations is to be avoided - when the investment suffers in the next crash it will be your fault and relationships could be damaged.

Depending on what they want to do with the money, one appropriate solution could be an annuity now that interest rates are higher.  No risk, no knowledge, and no effort required and I guess no need to transfer.   They may well be able to find an IFA to help them choose something suitable.

Exactly, to first part.
Yes, annuities are looking a bit better values now. But c.4k per year, versus a wodge in the bank for emergency repairs etc...  May take some selling.

To be clear, with an annuity bought with a pension pot, it is normal that you take the 25% tax free first before buying an annuity. Then the amount of income generated is influenced by the terms of the annuity, whether it increases with inflation or not, for example.

bearshare

Albermarle said:

bearshare said:

Linton said:

bearshare said:

Steve_666  and ader42
But both of your suggestions need someone to select which funds, and to, maybe, take the blame if/when markets slide. Which (lacking an IFA) would be me. I am happy enough selecting an HSBC All- World or Vanguard Lifestyle 60 for MY portfolio, but suggesting it, and suitable cash holding for someone else is a different kettle of fish.

Yes investing for friends and relations is to be avoided - when the investment suffers in the next crash it will be your fault and relationships could be damaged.

Depending on what they want to do with the money, one appropriate solution could be an annuity now that interest rates are higher.  No risk, no knowledge, and no effort required and I guess no need to transfer.   They may well be able to find an IFA to help them choose something suitable.

Exactly, to first part.
Yes, annuities are looking a bit better values now. But c.4k per year, versus a wodge in the bank for emergency repairs etc...  May take some selling.

To be clear, with an annuity bought with a pension pot, it is normal that you take the 25% tax free first before buying an annuity. Then the amount of income generated is influenced by the terms of the annuity, whether it increases with inflation or not, for example.

Thanks, yes I am aware.