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    • segovia
    • By segovia 10th Aug 18, 8:28 AM
    • 12Posts
    • 0Thanks
    segovia
    Defined Benefits Scheme - Transfer or Not
    • #1
    • 10th Aug 18, 8:28 AM
    Defined Benefits Scheme - Transfer or Not 10th Aug 18 at 8:28 AM
    My wife has a DB pension, today's value is around 300,000.00 and she is 56. Almost all of her colleagues have cashed in and reinvested in other schemes and are claiming they have made massive returns after fees and question why she has not done the same.

    Obviously, everyone's circumstances are different and for most of her ex-colleagues the DB scheme was the only source of retirement income.

    I have run successful businesses, we have a property portfolio with no mortgages value at 1.5M and I have my own pension 300K.

    Common sense tells me she should back a winner and leave the DB scheme and take the 9K + inflation increase year she has been quoted and not cash as this is low-risk guaranteed income. Thoughts welcome.
Page 2
    • 232607
    • By 232607 12th Aug 18, 8:45 PM
    • 123 Posts
    • 61 Thanks
    232607
    Thanks for the link, I've not read it in its entirety but I will do.
    It does seem to be talking about specific sectors & is rather US orientated.
    May be true if this is what I was "all in".
    Probably less so with being globally diversified across all equity classes & having some element (20%) of none equities.
    • 232607
    • By 232607 12th Aug 18, 9:06 PM
    • 123 Posts
    • 61 Thanks
    232607
    Why not 3 yrs of cash in bonds?
    Originally posted by TBC15
    My concern is that in times of market distress bonds may no longer be un-correlated to equities, IE they also go south.
    I would like to keep the 3 years of reserve in something that gives a return, if only covering inflation. But not at the expense of risking this also falls.

    Question for the more experienced people on here & it is a bit "left field" so I'm in danger of being shot down.
    How do you think P2P would hold up in times of market distress?
    I appreciate its untested so probably hard to say.
    I've seen where some of the loans are secured on 60-70% of the value of the security. Would this 40-30% buffer help guard against loss in a crash should the security need to be claimed?
    It's one ares where I'm not too knowledgeable so as I say, be gentle with me.
    • Thrugelmir
    • By Thrugelmir 12th Aug 18, 9:34 PM
    • 60,024 Posts
    • 53,380 Thanks
    Thrugelmir
    How do you think P2P would hold up in times of market distress?
    Originally posted by 232607
    Depends on who you've lent to. Each loan you make needs to be considered on it's own merits. Whether the rate offered is adequate for the potential risk. Would\Do you read the small print, or simply invest on the basis of the yield on offer?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • 232607
    • By 232607 12th Aug 18, 9:51 PM
    • 123 Posts
    • 61 Thanks
    232607
    Depends on who you've lent to. Each loan you make needs to be considered on it's own merits. Whether the rate offered is adequate for the potential risk. Would\Do you read the small print, or simply invest on the basis of the yield on offer?
    Originally posted by Thrugelmir
    I certainly would read the small print. My worry be if the devil is NOT in the detail.
    • Thrugelmir
    • By Thrugelmir 12th Aug 18, 9:57 PM
    • 60,024 Posts
    • 53,380 Thanks
    Thrugelmir
    I certainly would read the small print. My worry be if the devil is NOT in the detail.
    Originally posted by 232607
    Even the detail isn't enough. Commercial projects often don't run to plan. Too many unknown quantities.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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