Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Richard-q1 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
Hi Dianne, very informative video, thank you! I'm considering taking out an annuity, and wondered about the fixed (2%) income increase option. Like you said though, it starts low, and takes a long time (12 years) for the yearly income to catch up with the flat income annuity. I did some calculations with a compound interest calculator, and worked out that by that time, I'd received around £21k more with the fixed scheme. Then it took until year 22 before the indexed-income annuity finally ended up paying more in total, by which time I'd be 87, two years past my supposed life expectancy! 😀Maybe I'm missing something here, but the flat income annuity is looking a lot more attractive!
Thanks for this very important verdio about pension after watching your verdio i fully understand how to used my pensions pot the financial advisor will give the same advise but charges very expensive fee
Thanks for another informative video on pensions Dianne, I reach 55 this year and will be considering retirement this year, I think it will be a drawdown for me as I will have around 400K in my pot and as you have indicated in your video the larger the pot the more this suits the drawdown option as you can manage the risk better and you can potentially get more out of it than an aunuity if you invest your pot in the right fund, one video Idea I would like you to cover are the management fees pension providers charge for their funds you hold in retirement and the tax you pay on pension withdrawals and what you can do to reduce these fees, I would also like to see your take on managing risk in retirement pots with drawdown eg 100% stocks, 80% stocks/ 20% bonds or 60% stocks/ 40% bonds and the pro's and conns for each of these, Thanks
Hi Darren, thanks for sharing your situation. 400k is a decent amount to have accumulated - well done! And thanks for the excellent video topic suggestions. Management fees are becoming a real cause for concern for many, mainly due to how hard they are to interpret
To Dianne very informative video explaining the differences between annuity and drawdown. However I would like to point out a very important omission. You mentioned the reason many people do not purchase an annuity is because of the poor death benefits. You made no reference at all to guarantee periods which can effectively return any unused fund back to the Beneficiaries on death. The changes to guaranteed periods have been one of the most important developments in annuities in recent years.
Hi Dianne. I have become aware of flexible annuity, whereby you can buy an annuity with part of your pension pot and leave the rest in drawdown. This would provide you with the best of both worlds, but I need to rule the small print as its not suitable for all. I manage my own SIPP in drawdown and to me, it is the flexibility of the product which appealed to me. Having said that, if annuity returns continue to grow along with guilt returns, then maybe I will consider it again. Bri
Hi Dianne, just started watching your videos, I am 72, retired 3 years now took most of my tax free cash to buy a house no more rent which I think made a huge plus for us. put most of pension in draw down but had to take two pensions out as annuity part of terms and conditions, but i think that works. State pension plus serps and 2 annuities means I don't need to touch my pension still in draw down.
great video. I retire in 6 months at 64. I am currently looking at fixed short term retirement plans, 3 years in my case. at the end of 3 years i get the full amount back and then i will consider my options once again
Thanks for this one Dianne. I'm not far away from making this decision. I should have about 100k, and I thought that was low. But you're right, the average pension pot is tiny. Mind you, anything over the personal allowance is taxable. So diminishing returns if you also get the state pension.
Most of us will get the state pension as well as what we have in any other pensions. I’m 63, and have 4 pensions plus state pension ( max pension). A DB scheme that will give £50k tax free and £7K, state pension est £11K minimum in three years. Plus £200K in DC schemes. Hardest thing is to actually keep working at the moment life away from work looks very attractive
Thanks Dianne the vedio relay help me out I am 65 retireing in January but didn't know what to do because it's too complicated for my Generation I will takes 25% and the rest will invest in Drown down
I am 57 looking to call it on or before 60. The current DC scheme I am in with my employer is now something to look at an annuity with now the rate has improved.
Thank you for yet another very clear & helpful video. For what it is worth - and I am very fortunate to have a pension pot in excess of £100k - when I retire in 2024 I plan to combine the state pension with an annuity purchased with part of the pot money leaving the rest in drawdown. Hopefully I will enjoy some certainty as well as some growth for the future together with the chance of leaving something for my wife & children. I would be very interested to hear your views on fixed term annuities - both those with and without maturity values. Buying one of these without any final maturity figure seems little different to drawdown?
Hi Barry, it sounds like you have a good strategy figured out - well done! A fixed term annuity is indeed something I didn’t cover for simplicity sake - it would be a way of giving you options in the future if you find one that gives you a decent enough lump sum at the end. Goes to show how complicated pension decisions can be. Oh the joys of the DB pension!
A lot of people approaching retirement these days have a combination of DB and DC pensions but all the RU-vid videos seem to be based on DC only. I assume that if you have a chunk of DB which might cover your basic needs (possibly in conjunction with the state pension) then drawdown becomes even more attractive for the element you might have in DC, and you might want to touch that last?
Hi Mike, I tend not to cover DB as if you are fortunate to have one then I’m assuming you’ll be taking that into consideration as part of your decision making on what to do with your DC pot. But thanks for the feedback - I’ll include DB wher relevant in future videos. I think my case study “ Mike “ had a DB pension my video called “How much pension will I get?”
I’ve always just stuck the default values into my pension throughout my career, with my employer matching it. Now in my early 50’s and think that I’ll be a poor pensioner…. Even worse… I don’t smoke or have high blood pressure… may I should start for a week ahead of getting an annuity and then stop 😅. I think that the draw down seems a more sensible option if you can handle not blowing all at once.
There’s still time to increase your contributions if you have anything spare each month - I started playing catch up just a few years ago as I did the same as you for most of my working life
I am 71 years old I have a drawdown pension pot invested with Royal London in the last 4 yaers it has not increased in value ( +/- 4k of the sum during that time right now -3k) be aware of possible zero grow of your investment
The other option I've been thinking of is investing my pension pot in to a unit trust or some other fixed income investment. But unlike the annuity there is risk, but better reward. I'm still mulling this.
This is the most useful video i've found, thank you. With enhanced annuities, will they still pay out until you die? Even if you live longer than expected?
Annuities vary however the general principle is that yes, they will pay out until you die, if that's the type of annuity you've chosen. Unless of course you have opted to have a fixed term annuity.
Yes you’re right if the investments in your pension fund are growing at 0% and inflation is 10%. Conversely inflation could drop again to 2% and your investments grow by 12% - or the opposite could be true. That’s the risk with investing vs the certainty of a DB pension sadly
IF SOMEONE HAS HAVE PENSION POT OF 100,000 , 25% WILL BE ELIGIBLE FOR TAX FEE MEANS 25,000 COULD BE WITHDRAWAL AND REST AMOUNT 750000 WILL BE TAXABLE, IF SOMEONE WITHDRAW 30,000 OUT OF 100,000 COULD YOU EXPAIN HOW MUCH TAX WILL BE PAID IN EXCEES AMOUNT ? Thanks and Regard.
Hi , yes ..£25 k will be tax free .. And if u don't have any other income than your personal allowance Upton £12570 is also tax free on top of the 25% lump-sum.
@@manishrana6 Correct! If you leave the £75,000 in your pension then there's no tax payable. You are taxed on annual income in just the same way as when you are pre-retirement. Hope that helps @HWS?
