Retirement investment advice needed for a 30 something
Discussion
I was wondering if any budding financial advisor would like to offer some high level advice regarding my retirement.
I’m not rich my any means but I wouldn’t stay I’m poor, I’m approaching mid-30’s and need to sort my pension out or a retirement portfolio.
The last few years I have had to sacrifice pension payments to pay a bigger mortgage, which I have rightly or wrongly seen as an investment but I’m looking to start these back up again after a small pay rise. I’m a civil engineer by profession at middle management level with an average salary.
I’ve heard many say to never put all your eggs in one basket, on this basis should there be a portfolio of pension, savings, shares ect
Some simple advice would be helpful without the need to go and be hard sold by a financial adviser on stuff I don’t need.
I’m not rich my any means but I wouldn’t stay I’m poor, I’m approaching mid-30’s and need to sort my pension out or a retirement portfolio.
The last few years I have had to sacrifice pension payments to pay a bigger mortgage, which I have rightly or wrongly seen as an investment but I’m looking to start these back up again after a small pay rise. I’m a civil engineer by profession at middle management level with an average salary.
I’ve heard many say to never put all your eggs in one basket, on this basis should there be a portfolio of pension, savings, shares ect
Some simple advice would be helpful without the need to go and be hard sold by a financial adviser on stuff I don’t need.
If you can spare 30 mins, have a listen to this:
http://www.meaningfulmoney.tv/2013/06/05/mmp013-ma...
It cuts through all the guff and gives you the useful facts in an engaging manner.
http://www.meaningfulmoney.tv/2013/06/05/mmp013-ma...
It cuts through all the guff and gives you the useful facts in an engaging manner.
You'll know the options then! SIPP definitely for you? I'm hoping to launch a SIPP service in a few weeks, followed by a PP. I wonder if the anticipated market volatility over the next few months will justify the added cost and sophistication of a SIPP, forever the eternal IFA argument of course!
Pah, the biggest risk I've ever taken was ignoring these investments for too many year thinking it was all far more complicated than it really is.
I've been fortunate enough to have stumbled into some funds that have performed well, but I've also got far too much invested in really crappy funds from 20 years back when I started work.
The charges seem reasonable to me - fairly transparent - but most importantly I'm in control. There's enough information online these days to make informed decisions if you're prepared to invest the time.
I've been fortunate enough to have stumbled into some funds that have performed well, but I've also got far too much invested in really crappy funds from 20 years back when I started work.
The charges seem reasonable to me - fairly transparent - but most importantly I'm in control. There's enough information online these days to make informed decisions if you're prepared to invest the time.
I agree, if you can engage with the subject, it isn't really that hard to grasp. The trick is in identifying the softer objectives that a client might want to achieve, and then nailing them.. and not just the hard fund/product analysis.
Ps: You didn't learn to let go of those lemons then?! ;-)
Ps: You didn't learn to let go of those lemons then?! ;-)
Newc said:
Start by maxing your annual stock ISA allowance if you haven't already, fill it with buy+forget trackers. That's about 1k a month. If you're saving more than that, consider a SIPP especially if you are high rate tax payer.
While it is very rare that one size fits all - this is tremendous advice, IMHO.Newc said:
Start by maxing your annual stock ISA allowance if you haven't already, fill it with buy+forget trackers. That's about 1k a month. If you're saving more than that, consider a SIPP especially if you are high rate tax payer.
Or alternatively buy forget about it trackers, that are exactly the same as those in ISAs, in a pension, cheap and cheerful ones are available, and get tax relief on the contributions? Seriously, get some proper advice rather than the crap spouted on here by vested interests and those with an axe to grind for or against pension funds.
walm said:
Newc said:
Start by maxing your annual stock ISA allowance if you haven't already, fill it with buy+forget trackers. That's about 1k a month. If you're saving more than that, consider a SIPP especially if you are high rate tax payer.
While it is very rare that one size fits all - this is tremendous advice, IMHO.The case for ISA vs. Pension is a well covered argument.
As I said above, the tax relief comes at the price of accessibility (very roughly).
It all depends on your time horizon and pre-existing savings situation.
If you have no rainy day fund for example, I wouldn't kick off my savings with a pension despite the tax inducements.
As I said above, the tax relief comes at the price of accessibility (very roughly).
It all depends on your time horizon and pre-existing savings situation.
If you have no rainy day fund for example, I wouldn't kick off my savings with a pension despite the tax inducements.
In my unvested opinion, in your mid-30s the pension decision is not ISA vs SIPP, it's SIPP vs other pension plans. ISA vs SIPP is a long term savings debate.
I'm very pro-SIPPs as a concept, but taking the tax relief to lock up your money for a minimum of 20 years with potentially tax payments at the exit is not a clear cut decision. Forgoing some tax relief today to put in a 10k per year baseline of much more flexible savings, easily inheritable and with tax free returns doesn't seem like a stupid idea to me.
And that's assuming that there won't be any adverse changes to pension rules in the next 20 years (there will be), and that the tax take isn't increased (it will be).
For instance, if I was the Labour chancellor in 2016 looking for more ways to steal voters' money, I might stick in a 3% annual tax on the value of the fund for funds over £0.5m. Politically it's just the "super rich contributing a fair share", so no votes lost, and it's generally only people later in their careers who have large funds, so the NPV of the annual tax till drawdown is about the same as the punitive exit rate to close the SIPP completely, so it's difficult to avoid.
Does that sound implausible ? Doesn't to me. Compare that with ISAs where the worst case is that they are halted, and any future returns become taxable. Politically much more difficult to sequester funds from ISAs because they're so widely held.
I'm very pro-SIPPs as a concept, but taking the tax relief to lock up your money for a minimum of 20 years with potentially tax payments at the exit is not a clear cut decision. Forgoing some tax relief today to put in a 10k per year baseline of much more flexible savings, easily inheritable and with tax free returns doesn't seem like a stupid idea to me.
And that's assuming that there won't be any adverse changes to pension rules in the next 20 years (there will be), and that the tax take isn't increased (it will be).
For instance, if I was the Labour chancellor in 2016 looking for more ways to steal voters' money, I might stick in a 3% annual tax on the value of the fund for funds over £0.5m. Politically it's just the "super rich contributing a fair share", so no votes lost, and it's generally only people later in their careers who have large funds, so the NPV of the annual tax till drawdown is about the same as the punitive exit rate to close the SIPP completely, so it's difficult to avoid.
Does that sound implausible ? Doesn't to me. Compare that with ISAs where the worst case is that they are halted, and any future returns become taxable. Politically much more difficult to sequester funds from ISAs because they're so widely held.
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