CETV what to do with it ?

shortseller09

And this one for gilt yields:

https://uk.investing.com/rates-bonds/uk-15-year-bond-yield

wjr4

Perfo said:

dunstonh said:

 knew it wouldn’t be cheap but how many hours would it take an expert to work out and tell me the options what hourly rate do they charge ?

hours would be well into double digits and likely include multiple staff.  However, the main drivers are the risk of advice in that area.   Its the highest risk transaction that an adviser can do.  Its one that the regulator has shown some moving of the goal posts over the years and one that scares PI insurers and sends the PI insurance sky rocketing, not just in that year but every single year thereafter.

 I would imagine that even though it is a mine field for me it would be pretty standard stuff for someone in the trade….

Only around 1 in 10 advisers do it.     So, no, its not.

  I can’t really make any further thoughts on it until I get the CETV .

And just remember that if its £2m now, then that means it was over £4m 18 months ago.    It would put your transfer value in the top 1% of the country.   So, I think you really do need to wait for what it comes out at.

Ok, I retract my implied £5k was a scam.... of course it would still hurt though but then I'm a member of this forum as unnecessarily spending £5.00 hurts enough :-) .  I am definitely waiting to see the figure but have managed my expectations somewhat.  Now a dream figure of £4m would have been really something to enjoy worrying about and no doubt some made the most of it during the glory days.  What are the best indicators that the CETVs are on the way up or down ? is it RPI ? inflation etc ?   For example if I let it be this year what sort of indicators would I look at before getting another evaluation done ? I can do one a year and have seven years before the deadline. 

So you think you’ve got £2million but you think £5000 is a lot for probably the most valuable financial advice you’ll receive in your life? I wish people would stop thinking just of fees and actually appreciating financial advice! 

Perfo

dunstonh said:

What are the best indicators that the CETVs are on the way up or down ?

Gilt yields.

 For example if I let it be this year what sort of indicators would I look at before getting another evaluation done ?

We are back in the long term average ballpark now.   There is no expectation of any return to pre 2022 CETV levels.   You would need inflation much lower, the economy in a good state and interest rates back to near zero levels.  

Not much chance of that then anytime soon.... thanks for the pointers

Perfo

shortseller09 said:

Have a look at this link:

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

Thanks for the graph it paints a gloomy picture for current CETV's. I'll keep any eye on it over the next few years   

Perfo

shortseller09 said:

And this one for gilt yields:

https://uk.investing.com/rates-bonds/uk-15-year-bond-yield

Those are looking quite healthy though. Are they inversely proportional ? If gilts high CETV low ? 

Perfo

wjr4 said:

Perfo said:

dunstonh said:

 knew it wouldn’t be cheap but how many hours would it take an expert to work out and tell me the options what hourly rate do they charge ?

hours would be well into double digits and likely include multiple staff.  However, the main drivers are the risk of advice in that area.   Its the highest risk transaction that an adviser can do.  Its one that the regulator has shown some moving of the goal posts over the years and one that scares PI insurers and sends the PI insurance sky rocketing, not just in that year but every single year thereafter.

 I would imagine that even though it is a mine field for me it would be pretty standard stuff for someone in the trade….

Only around 1 in 10 advisers do it.     So, no, its not.

  I can’t really make any further thoughts on it until I get the CETV .

And just remember that if its £2m now, then that means it was over £4m 18 months ago.    It would put your transfer value in the top 1% of the country.   So, I think you really do need to wait for what it comes out at.

Ok, I retract my implied £5k was a scam.... of course it would still hurt though but then I'm a member of this forum as unnecessarily spending £5.00 hurts enough :-) .  I am definitely waiting to see the figure but have managed my expectations somewhat.  Now a dream figure of £4m would have been really something to enjoy worrying about and no doubt some made the most of it during the glory days.  What are the best indicators that the CETVs are on the way up or down ? is it RPI ? inflation etc ?   For example if I let it be this year what sort of indicators would I look at before getting another evaluation done ? I can do one a year and have seven years before the deadline. 

So you think you’ve got £2million but you think £5000 is a lot for probably the most valuable financial advice you’ll receive in your life? I wish people would stop thinking just of fees and actually appreciating financial advice! 

Are you a financial adviser by chance :-)  . I did retract my statement when educated on the intricacies including huge liability of these things.  I've only paid for two bits of financial advice in my life thus far. One on investments in stocks and shares which was totally useless and lucky I didn't follow it and the other was many years ago on mortgages.. I could have got the info on the mortgages myself i.e. it wasn't difficult but the adviser made it so simple and clear plus making a couple of predictions that turned out to be pretty bob on it was well worth the cash. 
Putting a price on something you don't understand is tricky. I wouldn't have a clue if £1m was a good price or total rip off for a piece of art for example. So without understanding it at all £5K seemed a lot but I never indicated the advice wouldn't be worth getting and fully appreciated (quite the opposite) .  The value of it goes with the level of guarantees I guess. 

QrizB

Perfo said:

shortseller09 said:

And this one for gilt yields:

https://uk.investing.com/rates-bonds/uk-15-year-bond-yield

Those are looking quite healthy though. Are they inversely proportional ? If gilts high CETV low ? 

Yes, if gilt yields are high, CETVs are low. Your pension provider needs to buy fewer gilts to fund your pension payments.

sandsy

Perfo said:

shortseller09 said:

Have a look at this link:

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

Thanks for the graph it paints a gloomy picture for current CETV's. I'll keep any eye on it over the next few years   

Although CETVs have fallen, the DB income is still as valuable as it was when CETVs were high.

Perfo

sandsy said:

Perfo said:

shortseller09 said:

Have a look at this link:

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/

Thanks for the graph it paints a gloomy picture for current CETV's. I'll keep any eye on it over the next few years   

Although CETVs have fallen, the DB income is still as valuable as it was when CETVs were high.

And they always will be providing the scheme doesn't go bankrupt or pillaged by ne'er-do-wells.  The thing that changes is the as the CETV gets higher or lower is whether its worth the risk going it alone and cashing in.. In the high days of the CETV i would think it was definitely worth a good looking at. At the moment it appears not to be.. 

QrizB

Perfo said:

And they always will be providing the scheme doesn't go bankrupt or pillaged by ne'er-do-wells.  The thing that changes is the as the CETV gets higher or lower is whether its worth the risk going it alone and cashing in.. In the high days of the CETV i would think it was definitely worth a good looking at. At the moment it appears not to be.. 

I saw this chart earlier (showing 17 years of annuity rates) and thought of this thread:

From https://www.sharingpensions.co.uk/annuity-rates-chart-latest.htm