Hargreaves Lansdown or another better option?

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mjsmike
mjsmike Posts: 12 Forumite
in Pensions, annuities & retirement planning
I am nearly 64 and I have 2 small pensions pots worth about 40K. Which I want to use to fund my lifestyle till I get to 66.
My plan was to transfer to HL Take 25% tax free.
Keep 75% in cash fund to draw down over the next 2 years until I get my state pension at 66
My only current income is £1K a year from a very small PPF pension
I have sufficient saving and another pension once I get to 66
I had more or less decided to go with HL but recent negative Woodford and HL press reports have made me reconsider my options. Any ideas comments?
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Comments

  • Albermarle
    Albermarle Posts: 22,143 Forumite
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    but recent negative Woodford and HL press reports have made me reconsider my options. Any ideas comments
    Recent events are only that HL are quite pushy in marketing certain funds and in this case the fund did not do very well, so some egg on face.
    This will have no effect on the many small and larger users of the HL platform.
    The only problem with HL is that they are more expensive than others but the service is good.
  • xylophone
    xylophone Posts: 44,413 Forumite
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    The only problem with HL is that they are more expensive than others but the service is good.

    Since the OP wants to transfer and stay in cash, he'll find them very cheap..

    HL are very efficient with regard to the PCLS and don't charge to hold cash or for drawing down the income.
    recent negative Woodford and HL press reports have made me reconsider my options.

    Irrelevant to what you want to do?
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    edited 14 June 2019 at 3:11PM
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    I had more or less decided to go with HL but recent negative Woodford and HL press reports have made me reconsider my options. Any ideas comments?

    What exactly has Woodford's recent events got to do with HL's platform?

    Yes, they overpromoted him in their marketing list but they are not advisers and don't tell you where to invest. Their platform is completely unaffected by Woodford. The only issue HL have is that it highlighted their failures in their marketing list. Plus, Woodford's funds are present in some of their own-brand cash cow funds. But they are not a fund you are going to use. So, really not an issue
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    xylophone wrote: »
    Since the OP wants to transfer and stay in cash, he'll find them very cheap..
    Indeed, they will even pay up to 0.15% on that cash which is more than most SIPPs
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 14 June 2019 at 1:31PM
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    Albermarle wrote: »
    Recent events are only that HL are quite pushy in marketing certain funds and in this case the fund did not do very well, so some egg on face.
    This will have no effect on the many small and larger users of the HL platform.
    The only problem with HL is that they are more expensive than others but the service is good.

    Not for cash. They are very cheap for cash. Possibly free even.
    mjsmike wrote: »
    I had more or less decided to go with HL but recent negative Woodford and HL press reports have made me reconsider my options. Any ideas comments?

    The issues to do with some HL funds and all Woodford funds are quite literally irrelevant to you as someone 100% in cash. They dont affect you at all.

    Dont forget to add £2880 every year for your free money.
  • mjsmike
    mjsmike Posts: 12 Forumite
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    Many thanks for the feedback. I do not understand all the implications of Woodward issues but headlines such as "Woodford contagion spreads to third fund: Hargreaves pulls £45m out of Income Focus after it shifts towards smaller firms" on the this is money website made me concerned. As well as several articles in The Daily Mail. I know that bad press can sometimes ruin a company's very good reputation and also that HL share price was down.
  • coyrls
    coyrls Posts: 2,432 Forumite
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    Do you check the share price of your broadband provider?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    As well as several articles in The Daily Mail

    Known for their 100% accurate reporting of all subjects.
  • mjsmike
    mjsmike Posts: 12 Forumite
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    coyrls wrote: »
    Do you check the share price of your broadband provider?
    Only if I was planning to move 40K to them :)
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    mjsmike wrote: »
    Many thanks for the feedback. I do not understand all the implications of Woodward issues but headlines such as "Woodford contagion spreads to third fund: Hargreaves pulls £45m out of Income Focus after it shifts towards smaller firms" on the this is money website made me concerned. As well as several articles in The Daily Mail. I know that bad press can sometimes ruin a company's very good reputation and also that HL share price was down.

    Income focus didnt suffer the issues that Income fund did. Indeed, the Income focus fund should have been the "mainstream" one as it didnt have the tail of illiquid holdings.

    People have been pulling out of Woodford funds because of name association. However, in the majority of cases, the money would just divert to other funds.

    HL fell in value because of reputational damage. Many investors that use HL are low knowledge and HL plays to that market. If that market stops trusting HL's marketing, it could hit their profits.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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