[Misc] Retirement

[Professor Plum]

This is a great thread that I'm working my way through slowly. It's possible this question has been covered, and if so, I apologise. Unfortunately I can't search for "IFA" as 3-letter searches don't work.

We retired last year. After 25 years of careful financial management, we're very lucky to be comfortably off -- nice house, mortgage paid off + a decent amount in SIPP and savings and investments.

I've always made my own investment decisions (based on little apart from reading a couple of books plus the investment news in the papers) but thinking about the current volatility in the markets, I'm wondering if I should get some proper advice. I basically took fright and sold most of my investments over the weekend. I'm now wondering if I overreacted. Whether I did or not, I'm wondering if these decisions should be handed over to an IFA or wealth management professional.

What are people's experiences of IFAs? My main fear is that they'd just be doing roughly what I'd be doing, but creaming off a big chunk of cash in fees every year. OTOH, I'd have no objection to paying X amount per year if they were earning me twice what I would have done had I carried on making my own decisions.

My concern is that I don't have much of a strategy. TBH, no strategy at all. Has an IFA helped you a lot, taking into account how much they charge?

Thanks for any insight.

Edited to add -- I see that IFA advice has just been asked by @Mellor 3 Ward 4. The overlap is purely coincidental. It wasn't there when I started writing this!

 

[BLOCK F]

Last month I took a 20% retirement. Dropped my hours by 20%, dropped my salary to 80%, took 80% of my max lump sum*, and am receiving 80% of my pension. What were they thinking?

My job is most peculiar. All the managers are 'research' managers. But I am employed to do teaching, research and admin. My 'boss' is not interested in my research, and when he took over he made no effort to include me in . . . . anything. Well, that's red rag to an autistic bull. I haven't spoken to him in the last 15 years.

But....I am left to my own devices. I have continued to fund research, and I have a massive teaching load. And yet....

The job is stupidly easy. Because I don't have any research 'targets' in my 'appraisal' (which is managed at a lower level by the 'section head') and have the most teaching hours in the 'school' I am deemed doing a splendid job but not eligible for promotion.

I am able to do most of my work from home and schlep it to London only when I have contact teaching (maybe 50 days a year).

So taking full retirement seems a bit.....pointless at the moment.

*the plan is to get the boy on the property ladder. Bank of dad and all that. When he gets around to start looking.... <sigh>. But it has been a horrendous year for him, so bad I have not and would not describe it on NSC. Onwards and upwards, though.

Boss is on permanent ‘ignore’ then.

 

[marcos3263]

Obviously don't take this as a recommendation because I don't know what type of pension you have, but have you considered moving your pension into a SIPP so that you can take income, and a cash lump sum, from age 55?

I amalgamated my pensions into one work place pension but the pot is only £92k so not enough to start taking out lump sums etc. my pension has always been at the lowest while I have put efforts into overpaying the mortgage instead.

I was already thinking of increasing my contributions or dabling in heroin. hadn't decided yet.

 

[dazzer6666]

This is a great thread that I'm working my way through slowly. It's possible this question has been covered, and if so, I apologise. Unfortunately I can't search for "IFA" as 3-letter searches don't work.

We retired last year. After 25 years of careful financial management, we're very lucky to be comfortably off -- nice house, mortgage paid off + a decent amount in SIPP and savings and investments.

I've always made my own investment decisions (based on little apart from reading a couple of books plus the investment news in the papers) but thinking about the current volatility in the markets, I'm wondering if I should get some proper advice. I basically took fright and sold most of my investments over the weekend. I'm now wondering if I overreacted. Whether I did or not, I'm wondering if these decisions should be handed over to an IFA or wealth management professional.

What are people's experiences of IFAs? My main fear is that they'd just be doing roughly what I'd be doing, but creaming off a big chunk of cash in fees every year. OTOH, I'd have no objection to paying X amount per year if they were earning me twice what I would have done had I carried on making my own decisions.

My concern is that I don't have much of a strategy. TBH, no strategy at all. Has an IFA helped you a lot, taking into account how much they charge?

Thanks for any insight.

Edited to add -- I see that IFA advice has just been asked by @Mellor 3 Ward 4. The overlap is purely coincidental. It wasn't there when I started writing this!

Tricky one to answer really….I worked in FS all my life but still use two advisors (I’ve got two separate pension pots, one manages each - the rest of my savings I manage myself).

What they’re doing is actually quite close to how I manage the stuff myself (fairly aggressive atm so bracing myself for a hit over the coming weeks), so in reality I’m probably paying some unnecessary fees on the face of it, but part of the consideration was if anything happens to me Mrs D is a bit clueless and will definitely need an advisor. Both have also given invaluable advice on how to structure things, work around income tax and IHT planning etc etc. There’s an argument to be made for sticking everything in a low-fee global index tracker !

As regards the market now, who knows Getting out is perhaps the safe option atm but history shows that if you stay in long term you’ll do alright - they key is being able to choose when to sell. Even the worst crashes in recent memory have been wiped out by gains pretty quickly……..

Most IFAs will give you a free consultation without needing to make any commitment at all - can recommend a couple if needed.

 

[BLOCK F]

This is a great thread that I'm working my way through slowly. It's possible this question has been covered, and if so, I apologise. Unfortunately I can't search for "IFA" as 3-letter searches don't work.

We retired last year. After 25 years of careful financial management, we're very lucky to be comfortably off -- nice house, mortgage paid off + a decent amount in SIPP and savings and investments.

I've always made my own investment decisions (based on little apart from reading a couple of books plus the investment news in the papers) but thinking about the current volatility in the markets, I'm wondering if I should get some proper advice. I basically took fright and sold most of my investments over the weekend. I'm now wondering if I overreacted. Whether I did or not, I'm wondering if these decisions should be handed over to an IFA or wealth management professional.

What are people's experiences of IFAs? My main fear is that they'd just be doing roughly what I'd be doing, but creaming off a big chunk of cash in fees every year. OTOH, I'd have no objection to paying X amount per year if they were earning me twice what I would have done had I carried on making my own decisions.

My concern is that I don't have much of a strategy. TBH, no strategy at all. Has an IFA helped you a lot, taking into account how much they charge?

Thanks for any insight.

Edited to add -- I see that IFA advice has just been asked by @Mellor 3 Ward 4. The overlap is purely coincidental. It wasn't there when I started writing this!

Hi there,
Obviously, I know nothing about your overall financial position, other than what you have stated on here, but having read that you sold most of your investments over the weekend due to the turbulence in the markets, it does sound that you may benefit from the advice of a good IFA. They may well have taken the ‘emotion’ out of the decision to sell when markets take a plunge. Indeed, it is often considered a buying opportunity. Trouble is, when you sell out, you can never be sure when to get back in….. if that is what you intend to do.
I can give no particular advice on IFA’s, except I would be very wary of St. James Place and their associates. Others on here may be able to recommend someone they have used.
On a personal note, it is horrible when you see your ‘hard earned’ disappear in front of your eyes, but always remember that you haven’t made a loss until you sell, and as I said earlier, if you do sell out as a knee jerk, you may well miss any rebound in the markets. I learned this a long time ago and now confine my reactions to any downturn/corrections to quietly cursing and proverbially ‘kicking the cat’, that we haven’t even got!
Good luck with whatever you decide to do.

 

[Beach Hut]

This is a great thread that I'm working my way through slowly. It's possible this question has been covered, and if so, I apologise. Unfortunately I can't search for "IFA" as 3-letter searches don't work.

We retired last year. After 25 years of careful financial management, we're very lucky to be comfortably off -- nice house, mortgage paid off + a decent amount in SIPP and savings and investments.

I've always made my own investment decisions (based on little apart from reading a couple of books plus the investment news in the papers) but thinking about the current volatility in the markets, I'm wondering if I should get some proper advice. I basically took fright and sold most of my investments over the weekend. I'm now wondering if I overreacted. Whether I did or not, I'm wondering if these decisions should be handed over to an IFA or wealth management professional.

What are people's experiences of IFAs? My main fear is that they'd just be doing roughly what I'd be doing, but creaming off a big chunk of cash in fees every year. OTOH, I'd have no objection to paying X amount per year if they were earning me twice what I would have done had I carried on making my own decisions.

My concern is that I don't have much of a strategy. TBH, no strategy at all. Has an IFA helped you a lot, taking into account how much they charge?

Thanks for any insight.

Edited to add -- I see that IFA advice has just been asked by @Mellor 3 Ward 4. The overlap is purely coincidental. It wasn't there when I started writing this!

I use an investment company, yes they charge but it is in their interest to grow you portfolio as they make more themselves

 

[BLOCK F]

Hi there,
Obviously, I know nothing about your overall financial position, other than what you have stated on here, but having read that you sold most of your investments over the weekend due to the turbulence in the markets, it does sound that you may benefit from the advice of a good IFA. They may well have taken the ‘emotion’ out of the decision to sell when markets take a plunge. Indeed, it is often considered a buying opportunity. Trouble is, when you sell out, you can never be sure when to get back in….. if that is what you intend to do.
I can give no particular advice on IFA’s, except I would be very wary of St. James Place and their associates. Others on here may be able to recommend someone they have used.
On a personal note, it is horrible when you see your ‘hard earned’ disappear in front of your eyes, but always remember that you haven’t made a loss until you sell, and as I said earlier, if you do sell out as a knee jerk, you may well miss any rebound in the markets. I learned this a long time ago and now confine my reactions to any downturn/corrections to quietly cursing and proverbially ‘kicking the cat’, that we haven’t even got!
Good luck with whatever you decide to do.

P.S. I have just seen Dazzer’s reply and we seem to be saying much of the same things. My wife is also a bit clueless about these matters and if I pop my clogs, I have arranged for her to get the advice she will need to deal with our investments.

 

[timbha]

Tricky one to answer really….I worked in FS all my life but still use two advisors (I’ve got two separate pension pots, one manages each - the rest of my savings I manage myself).

What they’re doing is actually quite close to how I manage the stuff myself (fairly aggressive atm so bracing myself for a hit over the coming weeks), so in reality I’m probably paying some unnecessary fees on the face of it, but part of the consideration was if anything happens to me Mrs D is a bit clueless and will definitely need an advisor. Both have also given invaluable advice on how to structure things, work around income tax and IHT planning etc etc. There’s an argument to be made for sticking everything in a low-fee global index tracker !

As regards the market now, who knows Getting out is perhaps the safe option atm but history shows that if you stay in long term you’ll do alright - they key is being able to choose when to sell. Even the worst crashes in recent memory have been wiped out by gains pretty quickly……..

Most IFAs will give you a free consultation without needing to make any commitment at all - can recommend a couple if needed.

I know you know it Dazzer but for others on here, a good IFA will give you more than investment advice.

They will help you assess your risk profile, explore investment strategies, help find investments that meet your requirements, provide most of the admin, consolidate for example your ISAs, do the same for your partner, arrange monthly (or other) income, help avoid unnecessary tax, enable one off withdrawals, etc, etc ….

You will pay for this service but good investment performance (or less bad inv performance) will minimise the impact of charges.

The convenience of a quick email instruction to your IFA and the money being in your bank account a few days later is well worth it.

I am NOT an IFA!!

 

[dazzer6666]

P.S. I have just seen Dazzer’s reply and we seem to be saying much of the same things. My wife is also a bit clueless about these matters and if I pop my clogs, I have arranged for her to get the advice she will need to deal with our investments.

…..albeit one of my pots is managed by an SJP associated firm……actually been good so far.

 

[BLOCK F]

…..albeit one of my pots is managed by an SJP associated firm……actually been good so far.

…..albeit one of my pots is managed by an SJP associated firm……actually been good so far.

Good to hear, may be I was being a bit harsh about them all.

 

[papachris]

One of the absolute pleasures of retirement, and there are many, is when I take my Boxer Maisie (she, on the left!) for a walk on a Monday morning. We pass queues of cars with people off to work all looking miserable and me and she content in the knowledge that we will stroll home for a leisurely breakfast.

On a serious note though, if you’re going for retirement my suggestion is that you reduce your working hours. From full time hours to part time so that you experience a gradual change to your lifestyle and embrace it accordingly. That way the shock of what will I do to fill those vacant working hours will be a joy not a hindrance. Right, I‘m off to the pub.

Definitely agree with the going part time. I was made redundant after a long career at aged 56 in 2018. I was lucky that the payoff was enough that I didn't need to worry financially and after that I only worked part time until emigrating before brexit transition finished.

 

[Professor Plum]

Hi there,
Obviously, I know nothing about your overall financial position, other than what you have stated on here, but having read that you sold most of your investments over the weekend due to the turbulence in the markets, it does sound that you may benefit from the advice of a good IFA. They may well have taken the ‘emotion’ out of the decision to sell when markets take a plunge. Indeed, it is often considered a buying opportunity. Trouble is, when you sell out, you can never be sure when to get back in….. if that is what you intend to do.
I can give no particular advice on IFA’s, except I would be very wary of St. James Place and their associates. Others on here may be able to recommend someone they have used.
On a personal note, it is horrible when you see your ‘hard earned’ disappear in front of your eyes, but always remember that you haven’t made a loss until you sell, and as I said earlier, if you do sell out as a knee jerk, you may well miss any rebound in the markets. I learned this a long time ago and now confine my reactions to any downturn/corrections to quietly cursing and proverbially ‘kicking the cat’, that we haven’t even got!
Good luck with whatever you decide to do.

Fair comment. In my defence, I’m not knee jerk in general. Some volatility is always there, and I usually just grin and bear it and ride through it. But this time I felt there was something more serious happening. I know you should turn a blind eye to events but I was scanning the front page of the Guardian and apart from market fears about the tech businesses underperforming etc there were stories about the UK riots, Iran vs Israel, unrest in South America, the Bangla Deshi PM fleeing the country, Trump, Ukraine/Russia, and various other upheavals, and I just thought bloody hell, the world is imploding. This on top of Pascal Groß leaving Albion. I’m not saying I made the right decision - time will tell - but things just seem to have gone madder than usual recently.

 

[dazzer6666]

Good to hear, may be I was being a bit harsh about them all.

They’ve had issues, and their charging structure is a bit odd (no upfront fee but a reducing exit charge for the first few years, although I think that’s been outlawed for new business now). More important for us was having a local adviser……

 

[dazzer6666]

Fair comment. In my defence, I’m not knee jerk in general. Some volatility is always there, and I usually just grin and bear it and ride through it. But this time I felt there was something more serious happening. I know you should turn a blind eye to events but I was scanning the front page of the Guardian and apart from market fears about the tech businesses underperforming etc there were stories about the UK riots, Iran vs Israel, unrest in South America, the Bangla Deshi PM fleeing the country, Trump, Ukraine/Russia, and various other upheavals, and I just thought bloody hell, the world is imploding. This on top of Pascal Groß leaving Albion. I’m not saying I made the right decision - time will tell - but things just seem to have gone madder than usual recently.

Well Warren Buffett has predicted a sell-off and has liquidated a ton of stuff…….

 

[Birdie Boy]

I know all pots don't necessarily fit into one but has anyone used Pension Bee? They don't seem to offer advise just give me your pensions! I have around £150k in about 5 pots and I am not currently paying into any as I am out of the country working at present. I tried the government free advise but they will not call a non UK phone number or use WhatsApp for a chat. I think I have one with BT that I dubr think that I should amalgamate but I'm definitely no expert.
I was also thinking it may be worth taking the 25% tax free now I'm 56 (I know I could at 55) but can I take that at any age? Or should I leave it building and take it later when I need it?
Any idiots is welcome, thx.

 

[AmexRuislip]

This 'retirement' thing is quite easy.
Just dropped off Mrs AR in Marlow for afternoon tea with her friend.
Then I'm off down for a long walk down the Thames.
Marvellous

 

[BLOCK F]

Fair comment. In my defence, I’m not knee jerk in general. Some volatility is always there, and I usually just grin and bear it and ride through it. But this time I felt there was something more serious happening. I know you should turn a blind eye to events but I was scanning the front page of the Guardian and apart from market fears about the tech businesses underperforming etc there were stories about the UK riots, Iran vs Israel, unrest in South America, the Bangla Deshi PM fleeing the country, Trump, Ukraine/Russia, and various other upheavals, and I just thought bloody hell, the world is imploding. This on top of Pascal Groß leaving Albion. I’m not saying I made the right decision - time will tell - but things just seem to have gone madder than usual recently.

Yes, it is quite scary when you put all that together and everyone must do what they think best, dependent on their timescale and attitude to risk. The last few days have made me a wee bit queasy, and at 76, I haven’t got a particularly long time horizon, but I am sticking with it for all the reasons I have stated before and we also depend on the tax free dividends in our ISA portfolios, so in the wise ? words of us Albion fans, I am keeping the faith. I hope that faith will be rewarded! I did take the opportunity of cashing in a large percentage of my Polar Capital Technology holding a few years back when they rocketed and I’m pleased I did.

 

[WATFORD zero]

P.S. I have just seen Dazzer’s reply and we seem to be saying much of the same things. My wife is also a bit clueless about these matters and if I pop my clogs, I have arranged for her to get the advice she will need to deal with our investments.

Mrs Wz says much the same about me, but I've told her she doesn't need to worry. If she pops her clogs I'm going out in a blaze of Glory

 

[BLOCK F]

Mrs Wz says much the same about me, but I've told her she doesn't need to worry. If she pops her clogs I'm going out in a blaze of Glory

Many of us think like that, but it may be more in hope than expectation or, then again, just plain bullshit!

 

[dazzer6666]

I know all pots don't necessarily fit into one but has anyone used Pension Bee? They don't seem to offer advise just give me your pensions! I have around £150k in about 5 pots and I am not currently paying into any as I am out of the country working at present. I tried the government free advise but they will not call a non UK phone number or use WhatsApp for a chat. I think I have one with BT that I dubr think that I should amalgamate but I'm definitely no expert.
I was also thinking it may be worth taking the 25% tax free now I'm 56 (I know I could at 55) but can I take that at any age? Or should I leave it building and take it later when I need it?
Any idiots is welcome, thx.

Pension Bee is one option that equates to what I said earlier - essentially putting it all in a tracker fund….their charges are quite low (economies of scale) and their funds are all properly managed by blue-chip companies but you won’t get any advice from them.

Think you def need to get advice as I suspect your tax situation alone needs to be managed if you’re outside the UK. As before, most IFAs will give you a free initial consultation