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About 65k it's just all the bits and bats from old jobs
Edit/ this will be going in to the house so won't live off it !
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Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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Edit/ this will be going in to the house so won't live off it !
I'd be all over that. My employer only puts in 4%Just realised my employer does a match plus 10 scheme for contributions.
So if you contribute 2% they do 12% = 14%
I think this is one of the more generous ones?
I think it is capped at 15% total though.
. I've never worked anywhere with a generous pension.
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So my understanding is I can take a quarter tax free then it's treated as earnings so if I just do 1 or 2 days a week next tax year ( or whenever ) I can make up my tax free allowance in tax free drawdown
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I would say this is this most sensible route, make your money work for you and have some cash to weather any storms. So many people must be leaving money on the table by being ‘safe’. If you have a sizeable pension I have no idea why you would be in bonds. My companies default pension has me in bonds in my 30s lol
it's tough to find an IFA at that level of fund.
The issue is that the FCA have driven so much regulation at IFA's etc - they simply can't "afford" to take on smaller clients....
So even if you pay 1% ongoing fee to an adviser as an example (which is at the higher end). They would net £650 a year off you... Minus FCA fees/PI insurance/tax/overheads... Probably the IFA would see around £150/200 of that over a year.
Align that with the fact they would need to do annual reviews/attitude to risk review/cashflow modeling/pre review work/post review work/ filing etc... It's simply not worth it.
There is a huge "advice gap" being created in the market just now - but FCA don't see it. Lots of IFA firms won't touch anyone under about £150k/£200k these days as it's just not worthwhile.
correct.
You can also take some of your tax free cash monthly as well to keep the tax down if you don't need the whole lump sum.
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Interesting thread, I always move out the lifestyle fund and move into global equity tracker.
I have monitored bond funds over the years and they seem just as sporadic as equity funds though now with the same high/lows. How then do bond funds work? Clearly they are not behaving as bonds do, some lose as much as 20% in a quarter.
I have monitored bond funds over the years and they seem just as sporadic as equity funds though now with the same high/lows. How then do bond funds work? Clearly they are not behaving as bonds do, some lose as much as 20% in a quarter.
Soldato
Only 3.6%? What funds are you invested in and what are the fees for that?
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I.am holding as cash , obviously I can enter back in at short notice but i.could be taking that money very soon so a bit nervous, edit that's the rate after fees
Edit may be less than 3.6 now so maybe worse than I thought
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Just popped up on my feed...
Just what I was saying - the advice gap...
Harriett Baldwin: Disrupting status quo key to closing advice gap
Soldato
65k should never be just sitting as cash because inflation will erode it over time - especially with the current inflation levels and crappy interest rates. At the minimum you should chuck it in a global index fund with low fees - you can always pull it out in a couple of days.
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I worry about global escalation of the hostilities tbh , I wouldn't if I was younger and doing dca but I could need or want in a month or so, so a 10 percent loss becomes an extra bathroom ect in my mind, but yeah it's not ideal in cash
Soldato
There are always global hostilities. War has been a global factor for several hundred years. It's worth remembering that war is profitable and trade is a zero sum game - someone always makes money. By being in a global tracker (or making your own) you are invested in *all* public companies, it's literally the best hedge against financial stress you can get.
I started my SIPP five years ago. The past five years have be complete global turmoil and my SIPP has grown... hold on checking the app now for the latest.... 83.05% in that five years. I am fairly close to having doubled my initial investment - and that's without adding additional money monthly (that's in a separate pension).
Investing is like planting trees. The best time to start was 20 years ago. The second best, today.
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My timing was terrible last time so still a bit raw. Just before the Ukrainian invasion so it took ages just to get back to quits again
Soldato
Trying to time the markets is a mistake, it rarely works. If you have a few quid spare, grab a copy of this book (you can get 2nd hand from amazon) https://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077 It totally changed my outlook on investing.
Thoughts on the £1 million pot tax being abolished come Spring budget and added back again by Labour?
Sort of expecting come my time (27 years from now ) they’ll be no Gov pension for me and tax raid on the private. Definitely see this being on cards but you’re sort of stuck being a rock and hard place. Once you hit that lifetime allowance (assuming it exists) should you risk pouring more money into it or start diverting heavily to ISA’s instead.
Sort of expecting come my time (27 years from now ) they’ll be no Gov pension for me and tax raid on the private. Definitely see this being on cards but you’re sort of stuck being a rock and hard place. Once you hit that lifetime allowance (assuming it exists) should you risk pouring more money into it or start diverting heavily to ISA’s instead.
Soldato
Somewhere between now and 27 years from now I suspect the government of the day will force everyone into a SIPP type arrangement before phasing out the state pension. I'm not sure how the logistics would work as they would have to compensate everyone who'd prior to that paid NICs in expectation of a state pension. The first step has already been taken imho with employee stakeholder pensions.
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That book is 18 years old!
Soldato
There is a newer version and the fundamentals still apply. The first book I ever read on money was The Richest Man in Babylon - it'll be 100 years old in 2026 and is still an absolute classic in the basics of money management.
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Yeah tbh it wasn't timing as such but I set the wheels turning to transfer over to Vanguard and it just happened that It all landed before the invasion, because I didn't read the massive warning signs I guess I think the same will happen in the middle east ect ect
I've grown risk averse in my old age as I don't have the time to drip feed