Taking your pension at 55 advice please.

[michael]

"Been at the same company for 35 years.Manual job,back and hips are in poor shape.55 now may be able to take a small lump sum to take off the mortgage.And a pension that would enable me to go to a 4day week.Spoken to a couple of financial advisors,all they have done is tried to flog me something.Any advice welcome also the usual abuse I’ll take."

[Heath Hammer]

"Branded - i agree, and to be clear i am talking about investing in a world all cap index - not a specific regional market."

[Westside]

"I broadly agree except that the FTSE 100 has barely increased over 20 years. 2003 3,729 Today 7,475 Doubled. Allowing for inflation, the 3,479, should have turned into 5,891 over 20 years. A return comfortably ahead of inflation, is not ""barely increased."""

[Nutsin]

What’s your advice then Soldo son? Got anything worth contributing for a change?

[Yorkammer]

Depends on how Wagner shares are performing.

[Northern Sold]

If Nutsin’s financial advice are anything like his posts on the Putin thread then a word of warning fellow WHO'ers… put your fingers in your ears… and nod … and do a Dionne Warwick…. And walk the fuck on by…

[Nutsin]

Putting money in any type of investment these days carry’s a lot of risk even in bonds. Not sure I’d be looking to put any money in the stock market though. With the open market option you might be best advised to get an annuity right now. Just shop around because some can charge a lot in fees.

[BRANDED]

One word of warning after having said all that. High inflation and interest rates are not goid times for investing but if you dont you’ll have even less.

[BRANDED]

Heath. I broadly agree except that the FTSE 100 has barely increased over 20 years. A ftse tracker would have been shit. Fundsmith is an active international growth fund that has grown something like 15% a year since inception. It charges 1% so if you had been in it you would have made around 14% a year. Terry Smith says he buys the best companies he can and do nothing. You cant predict highs and lows. One of the biggest mistakes people make is getting out in a drop in the market. This is generally the best time to get in but if you hold for a long time you’ll grow the value of your investments. Dont sell in a drop when in decent funds. “ Markets can go down and well as up” Over time they have gone up but its the BEST companies that do best and they do much better than the rest. The challenge is finding out what makes a great company. Terry sSmith has a number of indicators but his most important one is “ Return on Capital employed”. To put it simply they turn their capital into more cash than all other companies. His companies was founded in the 1920s on average so they do this for a very long time.

[Nutsin]

"Charley, Don’t be giving Northern Sold any ideas now. He’s likely to try it."

[Nutsin]

"Burnsy, It‚Äôs Papadopoulos You dopey cսnt!"

[Mr. Burns]

Nutsy = Mr Opodopoulos

[charleyfarley]

Nutsin must be a cheaper way of laundering money

[Nutsin]

"Buy a laundromat. You’ll have a cash cow for life, no labour costs or headaches. Doesn’t take much to operate. Then with the extra cash payoff your mortgage. Your welcome."

[Nutsin]

"Buy a laundromat. You’ll have a cash cow for life, no labour costs or headaches. Doesn’t take much to operate. Then with the extra cash payoff your mortgage. Your welcome."

[PwoperNaughtyButNot]

If you want to do it yourself and have some fun and be more active. Take one year and set up your ISA with Hargreaves’s or similar and do the Joel Greenblat method in the little book that beats the market. You could do it for a year and sell and buy within it without putting any more in it and you can then get back to your vanguard or similar isa the following years https://www.magicformulainvesting.com/ Returns have been favourable for a long period but you have to be machine like

[aldgate]

Totally agree with Heath Hammer on this My father-in-law has a few bob invested with St James's Place and when you see the fees they drain out (detailed in the smallest of print) it's scandalous Most financial advisers are little more than sales people putting their commission ahead of everything I run my own ISAs/Sipps/funds etc online with Hargreaves Landsdown so if it all goes wrong at least i know who to blame!

[Nurse Ratched]

"Heath Hammer, you flipping beauty! Thanks x"

[Heath Hammer]

"My views – pretty much applies to all scenarios for investing. Most things can be done DIY. You do not need to pay for specialist advise. My two favorite resources: spend a couple of hours on these and you will know more than a few so called experts. www.kroijer.com https://monevator.com/category/investing/passive-investing-investing/ invest in a broad market, low cost index fund or ETF. Chose the accumulating version so the growth compounds. Leave it for 7 years to grow. This last part is key. Money that you are going to need in the next few years should not be invested in equities (unless part of a properly designed drawdown strategy). Markets can go down and well as up. You need to give yourself enough time to make it less likely you do not need to take the money when it is below you original entry point… over time the market will move upwards, but you do not want to get caught out by short-term volatility. Do not pay large fees for advice. IFAs are trying to sell you something. If you have something complex that needs to be dealt with then seek a ‘certified planner’. Avoid places like St James Place (SJP) like the plague. ….. ……fees are the enemy. If you buy a broad index tracker on a platform like Fidelity, you will pay something like 0.6% total in platform fees and fund fees. Some ‘IFAs’ will want to charge you 5% for the same. So 10x as much… over time, this has the potential to reduce your money by tens of thousands of pounds. Think of it this way…. If the market rises 10% and you are DIY'ing via a broad index tracker your money will grow 10% less fees, so 9.4%. If you did the same thing with an expensive IFA, you money grows 10% less fees, so 5%... 4.4% less. They will tell you that their products will beat the market return …. But the question is can they do so by 4.4% every single year. The chances are vanishingly small. (80% of active money managers fail to beat the market returns, so unless you are confident of picking one of the 20% to manage your money, you are paying excess fees to perform on average, worse than you would do by going down the DIY option)"

[Heath Hammer]

"Nurse. honestly, you will not get better advise than this, whatever the boys in the shiny suits tells you. Assuming you do not need the money for at least 5 years, stick it in a global equities tracker and let it do its thing...."

[PwoperNaughtyButNot]

"Oh and reduce salt, alcohol, stress and processed food. Increase mobility, breathing, sleep and joy And reduce your risk of the care home cash grab."

[BRANDED]

"If you and your partner use your usa allowance you can, in theory, put up to £40,000 in S&S isas or cash isas. Personally I see an isa at best as a long term growth share investment vehicle due to there being not capital gains tax."

[PwoperNaughtyButNot]

"Build up the isa pot to £325k (£20k pa for 16yrs) Vanguard 80% or s&p pretty good value and good historic returns All tax free Draw down 4% so £13k per year tax free Add in your state pension approx £9k per year Perhaps some other work pensions laying around to top up Remortgage your house and use the equity to live how you want to live - no tax on debt but stamp duty to pay if you sell and downsize. Take a full term life policy for however much you can afford but ideally enough to cover the mortgage. Die and your estate sells your gaff to pay the mortgage off or your full term policy does - that’s why it’s called a mortgage (mortality debt) DONT KILL YOURSELF TO PAY THIS OFF, what’s the point? Then your £325k pot passes on to whoever tax free. Best way to screw the tax man I’d say but don’t take my advice. All depends on how much money you need to live but by that age most people have realised that the nonsense people buy to look flash when young is pointless. So food, mortgage, bills, holidays, clubs and hobbies, eating out etc multiplied by how long you want to live for. If you have the full term policy above just make sure you pop off before 91 and it all works out. If you live longer then your kids miss out but by that age they should be able to stand on their own two feet anyway so who cares? You’re dead!"

[Westside]

"So, can you pay into a Cash Isa AND a S & S Isa in the same financial year? Per the gov website you can. But the allowance is £20k total, not £20k per ISA. And you can only pay into ONE of each type of ISA in a tax year, which I hadn't made clear."

[Wilko Johnson]

"Thank you lab, that's what I thought. You can pay into one of each of the 4 types of ISA as long as the sum invested in the financial year amounts to no more than £20,000. I opened a new Cash ISA recently and had to cancel it as I hadn't read the full rules!"

[lab]

"Wilko , I think you can, but not breaking 20k across the two ."