Pension

[Hipper]

duplicate

[Hipper]

Another f....g duplicate. What am I doing!

[Lowbankclaret]

Paul Waine, I am not sure we disagree on 99% of things.
But I certainly agree with your explanations.

I stick with my don’t have your eggs in one basket.
I have an equitable pension, which has over the 21 years since they lost loads of money. It’s recovered fairly well. At 63 it will pay £10k a year.
I have Equitable AVC’s which I which I paid into for 17-18years at a fairly high rate. If I take that as a monthly pension they will pay me £22 a month. I was paying that a week. Complete waste of my money. At least with the rule change I can get at my £10k as a lump sum.
My Rolls pension is where I have a real difficult decision. At 60 it will pay £14.4k or about £550k lump sum. At 62 £19k or about £620k lump sum to put into a drawdown.
Plus a defined contribution Aviva pension, which is invested in a high risk fund that did ok this year as it went up 30%.

I also have a Hargreaves SIPP.

The younger you start the better, but it’s a complex subject.

[Dante.El.Chunk]

I always find it’s s good idea asking these type of questions on a football message board Speak to someone who properly knows what they are talking about rather than message board ‘experts’.

This message board comprises of a lot of people older than me. Therefore I have a better chance of results based knowledge as opposed to some salesman's b*****ks, or mere theory.

Also, I've managed to strike up a two page conversation - which is exactly what a message board is for. (off topic or otherwise)

Lastly, it was never my intention to make life changing decisions on the replies to this thread alone and ultimately I will be seeing an independent financial adviser. I don't see why anyone would want to squash a conversation that was being had in good faith and spirit about a topic that my generation and below are woefully ignorant of, quite the opposite, it should be encouraged.

I'd like to thank our "experts" because I now have words like "drawdown" in my lexicon which I didn't have previously, and I have found this thread to be very useful in a crash course in the messy world that is pensions.

[Blackrod]

Clearly hit a nerve somewhere. All I am saying is be careful. There was a thread about Woodford’s Income Fund last year and if one poster’s view ( who is supposed to be an ‘expert’) had been taken notice of they would now not be able to access their capital.

[Lowbankclaret]

Clearly hit a nerve somewhere. All I am saying is be careful. There was a thread about Woodford’s Income Fund last year and if one poster’s view ( who is supposed to be an ‘expert’) had been taken notice of they would now not be able to access their capital.

many professional experts would have recommended Woodford. I am not an expert and would not .

[Lowbankclaret]

I have no issues with tracker funds but ignoring Europe, Asia, Emerging Markets and other asset classes seems strange.

It’s all about where you are in life.

I am trying hard NOT TO OFFER advice.

I have had funds do 50% in a year, high risk funds but I was younger then and could accept a loss .

I bought Gulf Keystone at 6.5p spending a grand. Mega high risk. Sold at £1.

Bought northern rock, invested £1k, lost the lot.

Bought £3k of solo oil that’s now worth about 90 p total.

Note, I have not said anything about buying shares in your pension. Why, it’s a massive risk and you can lose **** loads of money.


History has shown that index linked funds will perform better than managed funds. So if your young go for them. As you say there are ones from around the world.

Spread your risk.

I think if I could start at 17 again with what I know at 55 I would be a multi millionaire easy.

The opportunities I pasted up were massive.

[atlantalad]

I raised a similar post related to pensions: “ Investment Returns” back in April as I was considering moving my pension pot from a DB scheme to a SIPP and doing a draw down. Apologies to post 38 contributor I shouldn’t be asking such questions on this forum but, by and large, the majority of contributors on this forum are worldly wise and have no axe financial to grind so I thought I would glean the consensus and experiences of such ordinary citizens. In future I will refrain from asking about lawnmowers, cars, mobiles, etc and will hence forth tootle off to the nearest garden centre, garage forecourt and mobile outlet to get an unbiased view of the best product available – guarantee by coincidence they will happen have the best product in their stock.

The motivation for my post was as NNN ( post 35) suggests – being able to pass on something as an inheritance should I pass away without running down all the money I had harvested away through my working life. I posed the question in my post – is it possible to get a 5% return on investment. Are there investment products that could achieve this? The general response was that, like all investments, the pot and any returns would be at the risk of market cycles, hence there are no guarantees with the exception of those merger ones offered by bank ISA’s and savings accounts. A further suggestion was to seek the advice from an IFA - a very wise recommendation alluded to by many on this post.

Hence, I find it interesting that NNN post #35 states “ There's fixed interest rate bonds paying 3% monthly where your capital is not at risk, that are classed as a deposit and therefore protected by the FSCA up to 85k per institution. “ Is there a source for this?
I have seen many claims of +3% bonds with words like : FCA Authorised then “Fully Established FCA Authorised Principle”. That wording to me suggests the bonds are high risk. I have not seen bonds that are protected by FSCA.

I would be interested to learn of risk free bonds returning 3%. Obviously I will research the fine print before committing any monies.

[No Ney Never]

Just done a quick search on a couple of comparison sites and it looks like the interest rates have come down a little from the 3% achievable in April when I invested in my latest 5 year fixed rate bond.
Currently Gatehouse pay 2.75% with the interest paid annually, SecureBank are paying 2.66% with the interest paid monthly. There's quite a few on the market around 2.75% that are protected by the FCA. I am only interested in fixed bonds where there's no risk to your capital and your deposit is protected by the government.
Should there be an indication of a rise in interest rates by the BOE, then it's likely we'll see the return to the market of bonds offering around 3%. Equally, should it look like interest rates are heading back down again, then the likelihood is that bonds offering 2.75% will be withdrawn and replaced by offerings at a lower percentage.
A new issue that is looking to attract funds by paying market leading rates may come along, as they do reasonably often, that would beat what's currently on offer, so you do have to keep an eye on these things if you are looking at putting some money away.
Of course there are many listing on Google who can offer far greater rates of return, some quote 8 to 12%, but beware that your capital is at risk and your money is not protected. These are not the sort of bonds anyone should be putting their retirement money in.