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Bold leap into retirement
Comments
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grimsalve said:MallyGirl said:grimsalve said:I had a chat with an IFA yesterday and I was shocked at the prices he quoted (around £2,000 for their report and then a 3% charge if I decide to go ahead with their suggestions). I'm not sure what to do next.
I don't have a DB. I just want a nice comfortable retirement so I thought it would be straightforward to setup. I've got a couple more IFAs to talk to though so I'll see what they have to say.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
@grimsalve, it might be worth you starting your own thread as there are a number of very knowledgeable posters on the Pensions forum who may not read this particular thread and may be able offer greater insights etc.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone4 -
MallyGirl said:grimsalve said:MallyGirl said:grimsalve said:I had a chat with an IFA yesterday and I was shocked at the prices he quoted (around £2,000 for their report and then a 3% charge if I decide to go ahead with their suggestions). I'm not sure what to do next.
I don't have a DB. I just want a nice comfortable retirement so I thought it would be straightforward to setup. I've got a couple more IFAs to talk to though so I'll see what they have to say.
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grimsalve said:I had a chat with an IFA yesterday and I was shocked at the prices he quoted (around £2,000 for their report and then a 3% charge if I decide to go ahead with their suggestions). I'm not sure what to do next.
Have you no desire to learn and DIY?
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nicknameless said:grimsalve said:I had a chat with an IFA yesterday and I was shocked at the prices he quoted (around £2,000 for their report and then a 3% charge if I decide to go ahead with their suggestions). I'm not sure what to do next.
Have you no desire to learn and DIY?
Ballpark figure of £500k currently in a SIPP that I'm thinking of turning into an annuity or something similar when I retire just so I get a reliable income of around £20k a year. No dependants, no debts, no commitments, etc. so I thought it would be a very quick and easy job for an IFA with the only questions being a 100% annuity, a percentage split between an annuity and drawdown, or just leave it as a drawdown (and then maybe a quick assessment of risk to make sure it's in the right fund).
By my calculations the 3% fee, plus the report, plus VAT, etc. would be around £20k which seems a bit excessive.
Would it be difficult to arrange an annuity without an IFA?0 -
grimsalve said:Ballpark figure of £500k currently in a SIPP that I'm thinking of turning into an annuity or something similar when I retire just so I get a reliable income of around £20k a year. No dependants, no debts, no commitments, etc. so I thought it would be a very quick and easy job for an IFA with the only questions being a 100% annuity, a percentage split between an annuity and drawdown, or just leave it as a drawdown (and then maybe a quick assessment of risk to make sure it's in the right fund).
By my calculations the 3% fee, plus the report, plus VAT, etc. would be around £20k which seems a bit excessive.
Would it be difficult to arrange an annuity without an IFA?
To complement the course they have a website, course notes and Facebook group with large community willing the help answer questions.5 -
Reckless_Saving said:grimsalve said:Ballpark figure of £500k currently in a SIPP that I'm thinking of turning into an annuity or something similar when I retire just so I get a reliable income of around £20k a year. No dependants, no debts, no commitments, etc. so I thought it would be a very quick and easy job for an IFA with the only questions being a 100% annuity, a percentage split between an annuity and drawdown, or just leave it as a drawdown (and then maybe a quick assessment of risk to make sure it's in the right fund).
By my calculations the 3% fee, plus the report, plus VAT, etc. would be around £20k which seems a bit excessive.
Would it be difficult to arrange an annuity without an IFA?
To complement the course they have a website, course notes and Facebook group with large community willing the help answer questions.
Many thanks for the links. I've not heard of them before. I've watched a few of their videos and they make some interesting points but they seem very Vanguard focused. I'll watch some more of their videos over the coming weeks. One thing I did notice in their pension video, no mention at all of annuities and I'm not sure if putting everything in an index fund would be suitable if you're hoping for a steady monthly income.0 -
@grimsalve
I would echo the post above about looking at some of the freely available info before deciding between IFA and DIY. I've just retired @53 (3 months ago - tapping this on holiday from the Black Forest!!). As a couple we are in a lucky position to have some DB provision to draw on in coming years (approx. £20k per annum - very lucky to have). We also have about £500k mostly in SIPPs, with a small amount in ISAs. Our investments are split approx. 80/20 equities and bonds, with about 3 years of expenses in bonds / cash ISAs. Equities all simple global equity ETFs. Will draw on cash / bonds and rebalance as we go. Have modelled retirement plans myself with tools that are easily accessible and have spreadsheets of my own to back that up. Perhaps I don't know what I don't know, but much happier this way than paying an IFA to do essentially the same.
Edited to add that I am pretty sure you could buy a fee only plan for retirement from an IFA / financial planner.2 -
nicknameless said:@grimsalve
I would echo the post above about looking at some of the freely available info before deciding between IFA and DIY. I've just retired @53 (3 months ago - tapping this on holiday from the Black Forest!!). As a couple we are in a lucky position to have some DB provision to draw on in coming years (approx. £20k per annum - very lucky to have). We also have about £500k mostly in SIPPs, with a small amount in ISAs. Our investments are split approx. 80/20 equities and bonds, with about 3 years of expenses in bonds / cash ISAs. Equities all simple global equity ETFs. Will draw on cash / bonds and rebalance as we go. Have modelled retirement plans myself with tools that are easily accessible and have spreadsheets of my own to back that up. Perhaps I don't know what I don't know, but much happier this way than paying an IFA to do essentially the same.
Edited to add that I am pretty sure you could buy a fee only plan for retirement from an IFA / financial planner.
Many thanks @nicknameless - I think my biggest problem at the moment is "the fear" - fear of retiring, fear of investing in the wrong funds, fear of not understanding the terminology, fear of running out of money, etc.1 -
That is all perfectly normal. A bit of time invested in some reading will help you with the basics and that can form a solid foundation for moving forward. At the moment you may not even know the questions to ask, let alone be equipped to understand the answers. That can make the idea of handing it all over to someone else very appealing but it will take a slice out of your future funds. If you can, if interested, get a grasp of the fundamentals then you can DIY or make a better match with an IFA.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.1
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