SIPP & Pension guidance - IM Private Clients
Discussion
My “ portfolio “ with IM is just about coming up to its 3 year anniversary and to date I’m probably at 100% at what I started out with as a lump sum. This includes the profits made from PHR which were then reallocated to other funds. Cautious and Defensive have been relatively poor so have been switching out in stages to a mixture of Tech , Opportunities and MM whilst keeping PHE intact or increasing.
PM3 said:
Well put, I was just about to write something about this thinking and the "fear" of crystallising a loss.
Specifically I did this some time ago with my PHO holdings I took the bullet at about 6K down selling out , BUT moved the fund straight into my Index100 holding. Doing some back calcs I am recovered just on that loss and more to the point up more than I would had the same money just wallowed in the loss maker .
You pays your money and takes your chances huh .
Indeed…..& doing those “back calcs” is sometimes tricky to do as an amateur, eh!Specifically I did this some time ago with my PHO holdings I took the bullet at about 6K down selling out , BUT moved the fund straight into my Index100 holding. Doing some back calcs I am recovered just on that loss and more to the point up more than I would had the same money just wallowed in the loss maker .
You pays your money and takes your chances huh .
Crystallising a loss is really only when you sell it and take the cash out.
If you are moving the money to another fund, you are betting that fund will grow faster than the one that had given you the ‘theoretical’ loss….
Something that preys on my mind frequently these days
LeoSayer said:
The only value that matters is the current value and the only question is whether, if you didn't hold PHO and instead had that value in cash in your bank account then would you buy PHO with it? If not, then sell.
You should do this periodically regardless of performance because your own circumstances, experience and risk tolerances change over time.
An excellent thought experiment, thank you. I wouldn't invest in PHO today if I had the cash in my hand..You should do this periodically regardless of performance because your own circumstances, experience and risk tolerances change over time.
Talking of back calc's can anyone enlighten me as to how PHO has a +13.64% cumulative performance over 3 years when the discrete annual returns are +9.84% 2020, +1.76% 2021 and -27.38% in 2022. Surely the performance over three years (factsheet dated May 23) will include all of the loss in 2022 which would more than wipe out any 2020 and 21 gains (plus the tiny bit YTD)? I'm happy to be educated/corrected here if I'm thinking about this in the wrong way, but to me I can't see how it can be positive?
M4tt-H said:
Talking of back calc's can anyone enlighten me as to how PHO has a +13.64% cumulative performance over 3 years when the discrete annual returns are +9.84% 2020, +1.76% 2021 and -27.38% in 2022. Surely the performance over three years (factsheet dated May 23) will include all of the loss in 2022 which would more than wipe out any 2020 and 21 gains (plus the tiny bit YTD)? I'm happy to be educated/corrected here if I'm thinking about this in the wrong way, but to me I can't see how it can be positive?
Hi Matt, I’ll be sure to look into that. Welcome to our board.
AdamIM said:
M4tt-H said:
Talking of back calc's can anyone enlighten me as to how PHO has a +13.64% cumulative performance over 3 years when the discrete annual returns are +9.84% 2020, +1.76% 2021 and -27.38% in 2022. Surely the performance over three years (factsheet dated May 23) will include all of the loss in 2022 which would more than wipe out any 2020 and 21 gains (plus the tiny bit YTD)? I'm happy to be educated/corrected here if I'm thinking about this in the wrong way, but to me I can't see how it can be positive?
Hi Matt, I’ll be sure to look into that. Welcome to our board.
There was a bug in the file relating to PHO. Here are May's figures and July month ends following. Expand the image to move the water mark.
supersport said:
I'll ping Coops on Tuesday, but in the IM account is there a way to stop a monthly contribution beyond cancelling the direct debit on the target bank account.
Yes, that's how I've stopped one. I've also stopped one with an e-mail to IM.I think there is a time window if not stopped via your bank. If it is due to come out on the 1st, you may need to stop it via the bank, as the IM electronic button may have already been pressed.
I don't have any active DDs, but it looks like you go to Contributions, Manage the DD you want to amend, click the Amend Contribution tab, select the hyperlink "contribution amendment". The next page has a "cancel contribution" tab. Clicking on that warns you about the 5 day window, and there is a "cancel contribution" button.
. Should have gone to supersaverspingu393 said:
supersport said:
I'll ping Coops on Tuesday, but in the IM account is there a way to stop a monthly contribution beyond cancelling the direct debit on the target bank account.
Yes, that's how I've stopped one. I've also stopped one with an e-mail to IM.I think there is a time window if not stopped via your bank. If it is due to come out on the 1st, you may need to stop it via the bank, as the IM electronic button may have already been pressed.
I don't have any active DDs, but it looks like you go to Contributions, Manage the DD you want to amend, click the Amend Contribution tab, select the hyperlink "contribution amendment". The next page has a "cancel contribution" tab. Clicking on that warns you about the 5 day window, and there is a "cancel contribution" button.
Correct, this is how one would amend/cancel their DD
Regards
Adam
79 year old mother has inherited a small pension of £1,524 pa increasing by a fixed 3% p.a.
Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
2 GKC said:
79 year old mother has inherited a small pension of £1,524 pa increasing by a fixed 3% p.a.
Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
Are there tax implications to consider?Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
2 GKC said:
79 year old mother has inherited a small pension of £1,524 pa increasing by a fixed 3% p.a.
Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
Need a bit more information. Does the pension cease on death?(it looks like it from the offer) Would need actuarial tables to work the numbers but you could ask them for their calculation.Provider has offered £12,666 upfront instead, which seems to be about 7.5 years worth
Not sure if you’re able to but would be interested on views on which option to take.
No current health issues.
Not advice, just showing you some math
Roughly they will assume statistically, a 79 yo woman will live a further 10.5 years (give or take). The following gives you an idea what sort of calc would be done and it will be a fair bit more complicated but the general gist....this assume 5% implied rate so 12kish is over 5, maybe 6% implied rate.
Jasey_ said:
If she needs or could do something great with the lump sum take it.
Otherwise keep the annual pension.
£1500 gross is £1200 net, or £100 pcm.Otherwise keep the annual pension.
If her leccy and gas bill is £100 pcm, then it's free power for life (assuming pension and power prices stay linked).
What can she do with £9500?
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