Retirement looms; do I need professional advice?
Discussion
Aged 58, I am already winding down (2.5 days a week now) to retirement at the end of 2020. Do i need professional investment advice?
The gut feeling is to take proifessional advice but to be honest I don't really trust financial advisers having been given some pi55 poor advice in the past by 'professionals on commission. But should I suck it it up and take professional advice now at this key point?
I have a mix of equities (7%), cash in various forms (30%), precious metals (3%) and a small private pension fund.(10%), Unmortgaed property I live in ( 50% ) which I wil probably look to downsize when my state pension cuts in in 2029. In addition, have a public sector pension worth about half of my expected basic living costs starting 2020.
I know I need to do something with the cash ( most of it came from a property sale this month) but Brexit has paralysed my decision making on where to push the cash and it is currently sat in bonds.
My temptation is not to opt for a drawdown or an annuity pension, to max out my stocks and shares ISA alllowances over the next 4 or 5 years and to carry on managing my own finances.
Take advice?
The gut feeling is to take proifessional advice but to be honest I don't really trust financial advisers having been given some pi55 poor advice in the past by 'professionals on commission. But should I suck it it up and take professional advice now at this key point?
I have a mix of equities (7%), cash in various forms (30%), precious metals (3%) and a small private pension fund.(10%), Unmortgaed property I live in ( 50% ) which I wil probably look to downsize when my state pension cuts in in 2029. In addition, have a public sector pension worth about half of my expected basic living costs starting 2020.
I know I need to do something with the cash ( most of it came from a property sale this month) but Brexit has paralysed my decision making on where to push the cash and it is currently sat in bonds.
My temptation is not to opt for a drawdown or an annuity pension, to max out my stocks and shares ISA alllowances over the next 4 or 5 years and to carry on managing my own finances.
Take advice?
Tough one to answer!
I too have generally shied away from financial advice (I bet many have mild horror stories from the 80s!).
I am going to a retirement seminar in Leicester in a couple of weeks - fully expect a moderately “hard sell”, but interested to hear ideas for things I haven’t thought of.
The key is how much you feel you need to live on, & whether your pots of investments will supply that, consideration for inflation, bit of flex for major items over the years ahead.....simple, eh!!
Bearing in mind you probably hope for perhaps 30 years of retirement, then I guess the question is whether you are happy to manage the funds to keep growing the pot to live off.
In our case, right now, I do....but that will likely change. Might be worth dropping the question in the IM sticky thread here: might help to have a chat with Nik on there.....
I too have generally shied away from financial advice (I bet many have mild horror stories from the 80s!).
I am going to a retirement seminar in Leicester in a couple of weeks - fully expect a moderately “hard sell”, but interested to hear ideas for things I haven’t thought of.
The key is how much you feel you need to live on, & whether your pots of investments will supply that, consideration for inflation, bit of flex for major items over the years ahead.....simple, eh!!
Bearing in mind you probably hope for perhaps 30 years of retirement, then I guess the question is whether you are happy to manage the funds to keep growing the pot to live off.
In our case, right now, I do....but that will likely change. Might be worth dropping the question in the IM sticky thread here: might help to have a chat with Nik on there.....
If you want to manage your own finances why do you feel you should pay for advice?
I'm not sure what you mean when you say you do not want to opt for drawdown or an annuity with the private pension element. What else would you do with this?
If you want to have a sense check with a qualified professional, but not to pay financial adviser fees, then there is a sticky at the top of this forum that you may want to look at.
Otherwise, it sounds like you have everything well structured and I only mention the above given the private pension point and my reading through the lines that what you really want is objective clarification on your plans, rather than paying a financial adviser to implement their own recommendation.
I'm not sure what you mean when you say you do not want to opt for drawdown or an annuity with the private pension element. What else would you do with this?
If you want to have a sense check with a qualified professional, but not to pay financial adviser fees, then there is a sticky at the top of this forum that you may want to look at.
Otherwise, it sounds like you have everything well structured and I only mention the above given the private pension point and my reading through the lines that what you really want is objective clarification on your plans, rather than paying a financial adviser to implement their own recommendation.
I guess I fear I am missing a trick at this key time. The drawdown/annuity option looks good ( i have iused a few online tools) but my wife is younger so I dont want it to all run out if I pop my clogs early doors. Having the money under my control to use as and when I want is attractive, and the predictions are I would be awash with momey in my 80's, less so in the next 10 years.
Cogcog said:
I guess I fear I am missing a trick at this key time. The drawdown/annuity option looks good ( i have iused a few online tools) but my wife is younger so I dont want it to all run out if I pop my clogs early doors. Having the money under my control to use as and when I want is attractive, and the predictions are I would be awash with momey in my 80's, less so in the next 10 years.
A drawdown won't make it run out, only you spending everything would do that. The advantage of a drawdown is the remainder of the fund can stay invested, which sounds to me like what you'd want.
At 55 I’m scaling down but wanted to boost earnings after I retire - I’ve decided to set up several businesses with much younger people who own half and will either give me a revenue stream or a lump when sold.
I couldn’t do it without them and vice versa.
So don’t over agonise on where the last $ is coming from when a little earner could be the answer, or even a part time job.
I couldn’t do it without them and vice versa.
So don’t over agonise on where the last $ is coming from when a little earner could be the answer, or even a part time job.
DSLiverpool said:
At 55 I’m scaling down but wanted to boost earnings after I retire - I’ve decided to set up several businesses with much younger people who own half and will either give me a revenue stream or a lump when sold.
I couldn’t do it without them and vice versa.
So don’t over agonise on where the last $ is coming from when a little earner could be the answer, or even a part time job.
That is an interesting thing to do.I couldn’t do it without them and vice versa.
So don’t over agonise on where the last $ is coming from when a little earner could be the answer, or even a part time job.
I’m curious (sorry for derail,& feel free to not reply!): do you have particular skills or contacts to help those younger people with, or is it really just the funding? will you use legal contracts for those revenue streams or lumps, or will you ‘trust’ them? & are you ready to write off a % of those for if they fail?
Angel investing....interesting plan!
Edited by mikeiow on Monday 29th July 08:20
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