Financial Advisor advice

Marlax

Hi all

I'm 55 and other half is 53 and I feel like I should get my finances in order and start planning when I want to/am able to retire? I get so many adverts on my social media feeds saying "Do you have a 250k pension - download our 9 must do things' or "Do you have a £750k pension - don't fall for these 5 mistakes, download our free guide", etc. etc. I'm very cynical about these kind of things, but I also don't think I'm managing my money as optimally as I should? (Has anyone ever got decent advice from any of the companies who advertise like this?)

What's the best option for finding a trustworthy excellent financial advisor in North London? Have you guys tried vouchedfor.co.uk and unbiased.co.uk - were they good/worth it/helpful?

Thanks

Dazed_and_C0nfused

Marlax said:

Hi all

I'm 55 and other half is 53 and I feel like I should get my finances in order and start planning when I want to/am able to retire? I get so many adverts on my social media feeds saying "Do you have a 250k pension - download our 9 must do things' or "Do you have a £750k pension - don't fall for these 5 mistakes, download our free guide", etc. etc. I'm very cynical about these kind of things, but I also don't think I'm managing my money as optimally as I should? (Has anyone ever got decent advice from any of the companies who advertise like this?)

What's the best option for finding a trustworthy excellent financial advisor in North London? Have you guys tried vouchedfor.co.uk and unbiased.co.uk - were they good/worth it/helpful?

Thanks

Not many posting on here are likely to use a financial advisor.

They will either by going down the DIY route, often learning lots from threads on here, or using an independent financial advisor 

Marlax

Dazed_and_C0nfused said:

Not many posting on here are likely to use a financial advisor.

They will either by going down the DIY route, often learning lots from threads on here, or using an independent financial advisor 

Ah, ok. Thanks. I guess I meant an *Independent* financial advisor. Is there a good calculator too where you can enter your pension numbers and it will tell you what it's worth in income terms? It doesn't help I have 3 pensions (2 from previous employers and one from my current workplace).
 

QrizB

Marlax said:

I'm 55 and other half is 53 and I feel like I should get my finances in order and start planning when I want to/am able to retire?

An admirable goal, and 55/53 is not too late to start planning.

Marlax said:

 get so many adverts on my social media feeds ...

Try to ignore the clickbait.

At best, they'll be adverts for huge national firms that want to sell you their products. At worst, scummy scammers who will take your money and leave you with nothing.

Marlax said:

I'm very cynical about these kind of things, but I also don't think I'm managing my money as optimally as I should?

I'd suggest that start with the basics.

1. What have you got? Make a list of all your assets that you've earmarked for retirement - pensions, ISAs, savings etc. Do this as a couple unless you're planning to divorce.

2. What income do you need in retirement, your "number"? Look at your current lifestyle and spending. Take away and work-related costs (commuting, uniform/"business casual" clothing, the daily Pret, whatever) and your mortgage costs (if you're expecting to have paid it off before retirement). Again, as a couple.
If you share details of these two things here, we can give you some opinions on where you are and what you can do about it.

MallyGirl

You can try something like guiide https://www.guiide.co.uk/ which is a free tool. Your pensions will be invested so what income they generate will entirely depend on what they are invested in. 

You can consolidate old pensions if you would find that easier to manage but a basic spreadsheet will work to combine everything.
Those adverts you see are from companies like Fisher who are not independent and are expensive. If you really want to use an IFA then local word of mouth or a local advert is as good as anything. You will need to do some research about what you have - providers, values, investments, values, fees - along with your goals to get the best out of an IFA.

Marlax

MallyGirl said:

You can try something like guiide which is a free tool. Your pensions will be invested so what income they generate will entirely depend on what they are invested in. 

Wow! How cool is guiide.co.uk - although it could have probably gone into a bit more detail. Looks like even though I've got some decent savings/pensions, it's still going to be touch-and-go if we live comfortably. Thanks for the recommendation though.

Marlax

QrizB said:

I'd suggest that start with the basics.

1. What have you got? Make a list of all your assets that you've earmarked for retirement - pensions, ISAs, savings etc. Do this as a couple unless you're planning to divorce.

2. What income do you need in retirement, your "number"? Look at your current lifestyle and spending. Take away and work-related costs (commuting, uniform/"business casual" clothing, the daily Pret, whatever) and your mortgage costs (if you're expecting to have paid it off before retirement). Again, as a couple.
If you share details of these two things here, we can give you some opinions on where you are and what you can do about it.

Have done that and not sure if it's about average, or below average for where I am in my life, I guess it's relative. 

I have 3 pensions (1 current workplace and 2 old ones), which total about £835k
I have some stocks & shares ISAs which total about £100k
I have some stocks & shares outside an ISA wrapper which total about £50k
I have a cash ISA £11k and some non ISA cash savings £10k
Bit of crypto and inherited a couple of gold coins, total about £25k

Other half, who used to be a teacher but left the profession 15yrs ago, has a teachers pension which will apparently pay an 'automatic' lump sum of £35k and then nearly £12kpa (looks like it is index linked?). Optional additional £27k lump sum available, which will reduce annual income to £9.5k pa.

Also have a mortgage which is around £220k (repayment, on a fixed rate 1.3% until July 2026; about 15% LTV; matures in 2039; currently overpaying a little bit each month).  And very high outgoings, which is upsetting, but difficult to reduce (I've tried) thanks to cost of living + 2 teenagers + frozen thresholds! Not an extravagant lifestyle by any stretch of the imagination, but it all (apparently) adds up!

I guess it's going to come down to where my pensions are invested, where my ISA funds are invested and what my projected outgoings will be in the next 5, 10, 15 years time? 

Vitor

The OP's household is very far from average, probably in the top 5–10% for retirement wealth in their age group. The real risk isn’t “do I have enough?” but “do I spend and structure it efficiently enough to make the most of it, without being eaten by tax, inflation, or lifestyle creep.”

A next step would be to create a rough retirement cashflow plan: when does work stop, what are expected expenses at each stage, and how do pensions, ISAs, DB income, and state pension fit together. That would clarify whether overpaying the mortgage vs investing makes sense, and how much risk to take in the pension investments.

If OP keep the mortgage to term (2039), they’d be 69 by the time it’s cleared. That’s past the age state pension kicks in. So they’d spend their entire early and mid-retirement, say 60-69, with a significant fixed outgoing hanging over them. Many retirees value having a “paid off roof”, it simplifies life and reduces risk. Carrying debt into retirement feels uncomfortable for most people, in terms of risk reduction and sustainability, paying off the mortgage with the 25% lump sum from pension is the safer and more comfortable option. Then again, downsizing even modestly would wipe out the mortgage and free up a huge chunk of equity

MallyGirl

Definitely take a look at the Number thread pinned here. You look like you are well set up but if you 'need' a lot in retirement then maybe not!
I have split out my number into:

• Fixed - will always need this and little scope for trimming. Fuel, water, council tax, phones, tv licence, house insurance, vehicle costs, food, house maintenance 
• Variable - will always want this but could trim if necessary. Streaming subs, gym, private health, eating out, gigs, small holidays, garden, helping daughter out
• Nice to have - big travel, one off capital spends, tech replacement

you haven't mentioned your age, or whether you want to retire early. How is your pension forecast looking (both of you)

dunstonh

What's the best option for finding a trustworthy excellent financial advisor in North London? Have you guys tried vouchedfor.co.uk and unbiased.co.uk - were they good/worth it/helpful?

Most IFA firms don't advertise.  They don't need to.    Putting a paid for entry on unbiased or vouchedfor is extremely expensive.  Unbiased have basically priced out most IFA firms to focus on national and regional FAs rather than IFAs.      Although if you use the tick box option to show non-paying firms, most of the IFAs will then appear.

 I guess I meant an *Independent* financial advisor.

stop looking at social media advertising then.  Most of those will be wealth management firms and salesforces.  Also, most financial scams start on social media.       Most genuine regulated IFAs will not have advertising on social media.

QrizB

OP so you've got a million quid already and, once you and your wife get to 67, you'll have £24k pa from two state pensions and another £12k from her teacher pension.

Even without saving another penny, if you keep working to state pension age you'll have a joint retirement income of about £75k pa between you.

If your outgoings are more like £50k pa, you can probably afford to retire before you reach 60. Potentially even tomorrow.