Financial Advisor advice

NoMore

Lozmaster said:

dunstonh said:

Lozmaster said:

Ok, thanks. 
If felt like I was typing forever, so probably should have added that I'm not planning to take any of the TFLS (I don't see us needing it) and would likely go for a level annuity, to maximise lifestyle while I can in the first 10 or so years of retirement. 

You would take the TFC and not use it in the annuity.

So, why might I do that?

Because the tax free lump sum is a valuable benefit of pensions and you intend to just convert it into taxable income. 

Albermarle

cfw1994 said:

artyboy said:

Marlax said:

I think I'm looking for advice/opinion on how to structure my retirement plan, given what I have, to make sure I'm not unnecessarily paying more tax than I should or to optimise how I use it. All the things they keep saying in the clickbait social media ads about 'dont make these 5 mistakes' or 'you could retire 5 years earlier if you structure your finances like this'. I keep getting emails from MoneyCoachJoe who says he's helped 100s of people 'just like me' to 'cut 10-20 years off their retirement age' and he doesn't want me to miss out (such a caring guy! 😄). Like you I'm cynical about these things especially when they do such obvious hard sell (50% off but only for the next 4hrs!) - but then again, am I missing something optimisation areas?

This is me 100%

Both Mrs Arty and I are perfectly happy with DIY for ongoing investments - we have a reasonable understanding of our risk appetite, and no concerns with DIYing our investments in terms of fund and platform choices.

However as we are approaching retirement, and with a recognition that as things stand, we have a sizeable estate (that has in fact doubled as a result of the pensions IHT changes), what we are looking for is targeted advice on best drawdown, usage, and pass-on strategy.

Everyone is entitled to their own views on the fairness of IHT, but when our own estate's bill has notionally gone up by 7 figures at a stroke, I have no moral qualms about exploring all legal options to optimise our position and that of our children/future grandchildren.

So what we need is an IFA that is able to take a holistic view of our position, and what we are currently planning, and either validate our approach, or give us some expert advice on alternative strategies, e.g.

- use of annuities with long guarantees
- trusts (*shudder* yes, I know, but they can have a use...)
- alternative tax efficient investments within risk tolerance (not sure how diversified you can get with VCTs, as an example)
- investment bonds
- anything else we've not considered.

What we DON'T want is someone that will just manage everything for us for both an upfront and ongoing fee... 

So, got an intro call with a Costco promoted Wealth Management firm - yes I know, I know... but they are - apparently - IFAs, and I feel I need to start somewhere. I'll get a feel pretty quickly if they have anything to offer...

Costco is an interesting choice - often value for money, I would imagine.
Is it https://www.apw-ifa.co.uk/costco ?


<minor thread diversion alert>
Just skimming some of their pages.  Looking at https://apw-ifa.co.uk/wp-content/uploads/2022/10/apw_wtlexplained_a4digital.pdf, I read:

"Assured Private Wealth’s Costco package 1 uses a property protection trust to leave your half of the house to your children but stops them from inheriting it until you have both passed away. This way if your spouse needs care in later life or remarries after you die, then your half of the estate is safe for your children. This type of planning doesn’t change anything in your lifetimes"

Is that needed? 
Would it be possible to change from Joint Tenants to Tenants in Common (equal shares), with your wills sharing your half to offspring on your death?

Just curious if they are looking for more ££ ways to provide something!!


Do report back!

The problem with that is that then the person living in the house only owns half of it. If the child is so minded they could make life uncomfortable.

The 'property protection trust'; is usually referred to as a Lifetime interest trust ( I think).
They are one of the 'better' types of trusts AIUI as they can make sure that your share of the property goes to the person you want,( often an issue with blended families) whilst your partner retains the home to live in.

cfw1994

Albermarle said:

cfw1994 said:

artyboy said:

Marlax said:

I think I'm looking for advice/opinion on how to structure my retirement plan, given what I have, to make sure I'm not unnecessarily paying more tax than I should or to optimise how I use it. All the things they keep saying in the clickbait social media ads about 'dont make these 5 mistakes' or 'you could retire 5 years earlier if you structure your finances like this'. I keep getting emails from MoneyCoachJoe who says he's helped 100s of people 'just like me' to 'cut 10-20 years off their retirement age' and he doesn't want me to miss out (such a caring guy! 😄). Like you I'm cynical about these things especially when they do such obvious hard sell (50% off but only for the next 4hrs!) - but then again, am I missing something optimisation areas?

This is me 100%

Both Mrs Arty and I are perfectly happy with DIY for ongoing investments - we have a reasonable understanding of our risk appetite, and no concerns with DIYing our investments in terms of fund and platform choices.

However as we are approaching retirement, and with a recognition that as things stand, we have a sizeable estate (that has in fact doubled as a result of the pensions IHT changes), what we are looking for is targeted advice on best drawdown, usage, and pass-on strategy.

Everyone is entitled to their own views on the fairness of IHT, but when our own estate's bill has notionally gone up by 7 figures at a stroke, I have no moral qualms about exploring all legal options to optimise our position and that of our children/future grandchildren.

So what we need is an IFA that is able to take a holistic view of our position, and what we are currently planning, and either validate our approach, or give us some expert advice on alternative strategies, e.g.

- use of annuities with long guarantees
- trusts (*shudder* yes, I know, but they can have a use...)
- alternative tax efficient investments within risk tolerance (not sure how diversified you can get with VCTs, as an example)
- investment bonds
- anything else we've not considered.

What we DON'T want is someone that will just manage everything for us for both an upfront and ongoing fee... 

So, got an intro call with a Costco promoted Wealth Management firm - yes I know, I know... but they are - apparently - IFAs, and I feel I need to start somewhere. I'll get a feel pretty quickly if they have anything to offer...

Costco is an interesting choice - often value for money, I would imagine.
Is it https://www.apw-ifa.co.uk/costco ?


<minor thread diversion alert>
Just skimming some of their pages.  Looking at https://apw-ifa.co.uk/wp-content/uploads/2022/10/apw_wtlexplained_a4digital.pdf, I read:

"Assured Private Wealth’s Costco package 1 uses a property protection trust to leave your half of the house to your children but stops them from inheriting it until you have both passed away. This way if your spouse needs care in later life or remarries after you die, then your half of the estate is safe for your children. This type of planning doesn’t change anything in your lifetimes"

Is that needed? 
Would it be possible to change from Joint Tenants to Tenants in Common (equal shares), with your wills sharing your half to offspring on your death?

Just curious if they are looking for more ££ ways to provide something!!


Do report back!

The problem with that is that then the person living in the house only owns half of it. If the child is so minded they could make life uncomfortable.

The 'property protection trust'; is usually referred to as a Lifetime interest trust ( I think).
They are one of the 'better' types of trusts AIUI as they can make sure that your share of the property goes to the person you want,( often an issue with blended families) whilst your partner retains the home to live in.

Thanks.  I don't think we would consider it if out offspring were like that!
Mind you, until they get their first houses, we also don't plan to do it - that could mess with their LISA usage in the short term future....

Marlax

Just out of curiosity - my two (old) pensions that I'm not currently contributing to, would you say they're performing ok? On 4th Oct 2024 one as worth £134,444 and the other £39,147. Today I checked and one is worth £149,470 and the other is £44,658. So, that's an increase of 11.4% (£15,296) and 14.1% (£5,511). Seems ok to me - not exactly setting the world alight, I know, but that's ok, isn't it? 

I could convert them into my current employer pension (DC) which I think is performing slightly better, maybe 14.5%, so then I'd just have one pension, but it takes a few months to move across if I remember rightly?

Linton

Marlax said:

Just out of curiosity - my two (old) pensions that I'm not currently contributing to, would you say they're performing ok? On 4th Oct 2024 one as worth £134,444 and the other £39,147. Today I checked and one is worth £149,470 and the other is £44,658. So, that's an increase of 11.4% (£15,296) and 14.1% (£5,511). Seems ok to me - not exactly setting the world alight, I know, but that's ok, isn't it? 

I could convert them into my current employer pension (DC) which I think is performing slightly better, maybe 14.5%, so then I'd just have one pension, but it takes a few months to move across if I remember rightly?

Pension returns have very little to do with the pensions themselves but rather the funds in which they are invested.  Different funds with the same provider will generate different returns, the same funds with different providers will generate much the same returns.

As to whether it is "OK" rather depends on what returns you need.

dunstonh

Just out of curiosity - my two (old) pensions that I'm not currently contributing to, would you say they're performing ok? On 4th Oct 2024 one as worth £134,444 and the other £39,147. Today I checked and one is worth £149,470 and the other is £44,658. So, that's an increase of 11.4% (£15,296) and 14.1% (£5,511). Seems ok to me - not exactly setting the world alight, I know, but that's ok, isn't it? 

Seems ok in what context?  
What risk level are the investments?
If you think 14.1% is just ok and not setting the world alight then you are in for a mighty shock sooner or later.

I could convert them into my current employer pension (DC) which I think is performing slightly better, 

"I think" is not good enough.  You need to know.   And you need to know the risk differences.  You could be comparing low risk to high risk and doing that in a period of growth can be totally misleading.  Act on facts.  Not whims.

Bostonerimus1

Marlax said:

Just out of curiosity - my two (old) pensions that I'm not currently contributing to, would you say they're performing ok? On 4th Oct 2024 one as worth £134,444 and the other £39,147. Today I checked and one is worth £149,470 and the other is £44,658. So, that's an increase of 11.4% (£15,296) and 14.1% (£5,511). Seems ok to me - not exactly setting the world alight, I know, but that's ok, isn't it? 

I could convert them into my current employer pension (DC) which I think is performing slightly better, maybe 14.5%, so then I'd just have one pension, but it takes a few months to move across if I remember rightly?

Take the time to find out how these pensions are invested, then you can judge the performance, but I'll go out on a limb here and say that if you think 11% and 14% annual gain isn't "setting the world alight" you need to reset your expectations. It really sounds as if you don't know what's inside your pensions so any action you take is just complete guess work...good luck with that! Now if you take the time to understand the assets inside your pensions you have a chance to make sensible choices.