Pensions Planning

[jack_lord]

just to point out the up and down bit.
I invested in a H&L stock back in 2001. I put in 4000. within about 18 months it was worth about a thousand. It took a few years to recover to the original investment. The investment did snowball and tripled within a couple of years. I was smiling at the time. Since 2013 though, there have been a couple of crashes, brexit and Russia invading Ukraine. While the investment has more than doubled it is worth 2 thousand less than 11 years ago.
If I had invested that 4 grand 2 years later though and reinvested it elsewhere 10 years later that 4k would have been worth 50k back in 2013. That really shows how timing is critical in your investment choices.

 

[monmouth]

Annuity rates were pretty disgusting when I last looked some years ago. Especially as it would need to be inflation proofed.

 

[jack_lord]

A message to all - be very careful with the annuity route. Once you’re gone, it’s gone. Whereas the drawdown route sees any balance passed to named beneficiaries.

Absolutely. The current annuity rates look attractive compared to say a 4% drawdown but if I chose an annuity and was to cake it the following year then all that planning would have been for nothing. At least the drawdown could be worth the same in 20 years time and you can pass it on or whatever.

 

[monmouth]

just to point out the up and down bit.
I invested in a H&L stock back in 2001. I put in 4000. within about 18 months it was worth about a thousand. It took a few years to recover to the original investment. The investment did snowball and tripled within a couple of years. I was smiling at the time. Since 2013 though, there have been a couple of crashes, brexit and Russia invading Ukraine. While the investment has more than doubled it is worth 2 thousand less than 11 years ago.
If I had invested that 4 grand 2 years later though and reinvested it elsewhere 10 years later that 4k would have been worth 50k back in 2013. That really shows how timing is critical in your investment choices.

It is, but you can't predict or we'd all be bitcoin millionaires. It's all just posh betting. Risk can be a cruel mistress.

 

[jack_lord]

It is, but you can't predict or we'd all be bitcoin millionaires. It's all just posh betting. Risk can be a cruel mistress.

absolutely. That H&L fund, now managed by allianz is going to sit there for a bit long and transferred to my PensionBee pot because at least it will be inflated by the Government contribution.

 

[Cooperman]

absolutely. That H&L fund, now managed by allianz is going to sit there for a bit long and transferred to my PensionBee pot because at least it will be inflated by the Government contribution.

What government contribution, you mean the tax relief?

 

[jack_lord]

What government contribution, you mean the tax relief?

yes - i have two pensions and one of these I pay independently. It looks like a contribution because it is added to my contribution even though it is tax relief. I guess they get it back though taxation when it the pension is being withdrawn.

 

[Cooperman]

yes - i have two pensions and one of these I pay independently. It looks like a contribution because it is added to my contribution even though it is tax relief. I guess they get it back though taxation when it the pension is being withdrawn.

At least when you take it out you may have the benefit of personal allowance.

 

[Wing_Stand_Wood]

If you are a bit of a stock-market anorak or a D.I.Y retail investor?...... Here is a very interesting and informative (called 'PensionCraft') YouTube channel! This guy also comments on additional matters beyond portfolio’s and investing e.g. global economic conditions, occurrence's and outcomes that could affect stock market returns. This guy is extremely well rounded possessing admirable intelligence, experience and communication skills.

The channels guru is called Ramin Nakisa. He worked in investment banking from 2001 to 2016 before becoming a strategist; he spent two years teaching finance in an investment bank, this helped him to learn how to explain finance in a non-mathematical way.

He previously completed a Physics degree and doctorate at Imperial College in London then post doctorate research in neural network models of language acquisition in the Experimental Psychology Department at Oxford University.

 

[Wing_Stand_Wood]

just to point out the up and down bit.
I invested in a H&L stock back in 2001. I put in 4000. within about 18 months it was worth about a thousand. It took a few years to recover to the original investment. The investment did snowball and tripled within a couple of years. I was smiling at the time. Since 2013 though, there have been a couple of crashes, brexit and Russia invading Ukraine. While the investment has more than doubled it is worth 2 thousand less than 11 years ago.
If I had invested that 4 grand 2 years later though and reinvested it elsewhere 10 years later that 4k would have been worth 50k back in 2013. That really shows how timing is critical in your investment choices.

The scariest thing was those that invested with this fund or similar! I knew someone who did, and AXA stopped investors from withdrawing their own money, meaning they had to watch in real-time from the sidelines whilst the stock market and their investment value plummeted losing tens of thousands of pounds in the process.

D.I.Y investing with historically famous larger companies, or an index fund and NOT putting all eggs in one basket really is a far safer option. I was told that this fund had holdings in smaller companies outside of the FTSE 100 which meant that when a small company goes bankrupt the entire holding allocation gets destroyed, and thus cannot ever rebound in value in a bull market.

Axa closes doors on property fund withdrawals

Insurer is latest fund manager to stop private investors taking out their cash as the credit crunch hits commercial property

www.theguardian.com

 

[Pegojack]

I would stay away from open ended funds and individual company stocks, however famous, when you're starting out in DIY retail investing.
Investment trusts are the way to go, because these closed end companies spread the investment risk and if you select the right ones, pay a healthy dividend.
Some examples:

City of London IT
Brunner IT
Shires IT
BlackRock World Mining Trust
Henderson Far East Income Trust
Murray Income Trust
Scottish American
JP Morgan Global Growth

All companies I'm invested in.

 

[Wing_Stand_Wood]

Index funds are intriguing and exciting, especially when you consider the fact that $10,000 invested in 1942 in the S+P 500 would have been worth $51,000,000 in 2018. And of course it would be worth vastly more today in 2025. The S+P 500 index closed at 2,485 on December 31st 2018, today its 6047 as I type.

Compounding is the eighth wonder of the world according to Albert Einstein.

I have invested my own money in index funds, they truly spread the risk by investing in thousands of shares from thousands of companies, BUT some of what’s offered by providers comes with the UK's 'reporting status' tax requirement for index fund portfolios that include overseas investments

So basically you either become your own accountant i.e. having to fill in self assessment tax returns, or you have to employ an accountant in circumstances where capital gain taxation becomes an eligibility and obligation!!!!

https://www.cnbc.com/2018/05/07/warren-buffett-10000-invested-in-an-index-fund-when-i-bought-my-first-stock-in-1942-would-be-worth-51-million-today.html#:~:text=Warren%20Buffett%20says%20that%20if,and%20the%20Cuban%20Missile%20Crisis.

 

[Gors Buster]

I’ve always been hot on my pension, mainly due to the fact that they’re both private sector and not going to be anywhere near enough for me retire comfortably.
I moved my active one into a gold fund 12 months ago. It’s made around 5 years worth of contributions.
Gambling

 

[Skippyjack]

Saving money until you're 67, practically old as f*ck, so you can pay care home costs.. 67 is when your body totally crumbles.. cash out at 55 and go on a world cruise or something, because the grim reaper (actually an alien) is sharping his sword when 67 approaches, he's rubbing his hands

 

[monmouth]

Saving money until you're 67, practically old as f*ck, so you can pay care home costs.. 67 is when your body totally crumbles.. cash out at 55 and go on a world cruise or something, because the grim reaper (actually an alien) is sharping his sword when 67 approaches, he's rubbing his hands

I'm 66 and run marathons in under 4 hours. Didn't realise in 9 months I'd be fecked. Thanks skip.