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Thread: Advice from the financial savvy on here.

  1. #1
    Master woodacre1983's Avatar
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    Advice from the financial savvy on here.

    A lot has has happened over the last two and a half years and it has brought me into the real world and made me realise planning for the future and making certain you are able to enjoy your later years is massively important.

    Anyway, in the last 6 month me and my family have gone from renting off my father in law to owning the property with no mortgage. I am now starting to plan for my retirement (ideally in 20 years!) I am self employed and currently am not paying into any pension and only have a basic (very bad) savings account. I have read on here of all people using investment plan such as vanguard and others and am wanting to start doing the same. It would need to be managed as I currently have zero knowledge on this!
    Can anyone set me on the right footing to start? And then secondly best places to read and learn about investments to eventually become more able to choose my own investments.


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  2. #2
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    I strongly recommend you find a good local independent financial adviser initially at least to set up your portfolio a a sound basis.

  3. #3
    Agreed.

    An IFA is just like a plumber, you know you could do the job they do. But if you did it yourself it would be sloppy, and come back and bite you.

    One can't be good at everything.

    Outsource your knowledge needs

    6-8% of your monthly into a pension is a good start (>10% ideal) and then 5-10% into varied savings including ISA's etc would be a broad start for volume. But it's the destination for the funds that's the real key.

  4. #4
    Congratulations indeed on your realisation!
    I’m recently (early) retired at 58 although I still do some consulting work as it suits me.
    Was fortunate in having a DB scheme at work which peaked at the LTA as I decided to retire
    I cannot stress enough how much you need to think and plan ahead these days if you want a decent lifestyle in your later years.
    A million pond pot will see your income at about £35k/ year before tax and I’d suggest you need to lay away enough per month to get you there.This would also allow a lump sum to draw down on for cars etc if you’re careful.
    Massive assumptions about the future of course but paying well now will give you choices you will want, believe me. Personally I’d advise against assuming that you may inherit money- (too many assumptions again for me) if it happens , all well and good.
    Good luck, you appear to be in a minority of people who consider this these days!
    Ps don’t consider myself financially “savvy” as such (in the same way as others such as Devonian of this forum)but I am speaking from the experience of drawing a pension and it’s relation to the amount saved into the pension pot
    Last edited by GOAT; 7th July 2019 at 15:03.

  5. #5
    Master
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    Good advice above, but equally as important, you need to understand what your FA is taking as a % for managing your funds/ISA,s etc. Costs are key especially over a 20 year investment plan

  6. #6
    Grand Master Andyg's Avatar
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    Quote Originally Posted by Plastic_Magpie View Post
    I strongly recommend you find a good local independent financial adviser initially at least to set up your portfolio a a sound basis.
    This ^^^^^^^

    Plus don't forget for every £1 you put into your pension HMG will give you 20p, plus they will give you 20p in Tax relief (assuming you are paying 40%). The downside is you cannot access your pension pot until you are 55.

    Also don't forget that your LTA (Life time Allowance) is currently £1.055M - after which the Tax man will take 55% on every penny over. It's a nice problem to have, but still a problem.

    Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
    Friedrich Nietzsche


  7. #7
    Wouldn't bother with IFA, invest in a tracker, get a subscription to Investors Chronicle or similar and DIY. It's not rocket science.

  8. #8
    Master
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    I keep hearing the advice, find a good IFA. But how to you do this? Itís bad enough finding a plumber or electrician and if there work is shoddy you know pretty quick. With an IFA the end results could presumably be disaterous.

    I knew went to school with some people who trained as an IFA. Barely a GCSE between them.

    Also, how do people get a pot of a million? 40 years at 50k is only 2 million. Thatís before tax an everything else?

  9. #9
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    To simplify things Iíd break it down initially into - necessities and luxuries, with things like pensions and ISAís being luxuries (bare with me). So letís look at the necessities first. Iíll assume you are married with dependent children for this exercise.

    If you couldnít work tomorrow through illness what would you live on? If you had died yesterday how would your wife and children live?

    Youíre self employed so Iíd strongly suggest looking at income replacement. Whilst youíre fortunate enough to be mortgage free if you have dependant children Iíd recommend life cover to replace your income in the event of death. Critical illness cover too if itís affordable. These things are really necessities just like car insurance or home insurance, but unlike them they arenít mandatory so people often wonít do them. Iíve come across people putting £500 Or £1,000 a month away for example in pensions and have no insurance what so ever. They become ill, canít work and bang it stops. £50 a month to protect yourself and £450 in a pension would be far more logical.

    Pensions and savings are really luxuries because you can only afford to fund them as long as you have an income - the income is the necessity! Imagine paying £500 for one month, falling ill and never being able to work again and having. . . . £500 in a fund. Or having a policy that potentially pays hundreds of thousands out. Remember you hope all insurance is a waste of money as no one wants to claim, but just in case.

    Once youíve done that you can then decide on planning for the future. Before considering a pension, make sure you have a few months income saved up as anything paid into a pension canít be accessed until at least 55. Then decide on a monthly figure you can afford every month. It has to be realistic in two ways - firstly that you can actually afford to keep it up, but secondly that itís actually going to be worth something at the end of it. Without a mortgage Iíd be suggesting 10% or more if possible of net income, but I donít know your circumstances. Play around with pension calculators online to get a realistic idea. To get going a low cost balanced/managed fund would be ideal and as it grows and your knowledge improves, possible diversification into a variety of funds. Understanding you risk is important.

    An IFA would be ideal for all this so ask your friends for personal recommendations. I would imagine that if they look at the Ďwholeí picture For you, theyíll be able to set up a low cost pension for you, or at least advise on it.

    If you want to do it yourself, Iím sure you can. Look into risk and find funds thatís suitable to what you feel comfortable with. Most pension companies should have a good description of the funds and its aims.

    The most important thing of all though is to put money away as young as possible for as long as possible. Youíll be so glad you did. This is all very generic as I know nothing about you, so just take the points that are relevant to you. Good luck.

  10. #10
    Master mindforge's Avatar
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    Good advice above. The problem with finding an IFA is they are only really interested if you pay them an ongoing charge as a percentage of your holdings for managing them, which gets expensive, destroys gains and likely doesn't result in better performance. What would be most useful and what most people need, who don't have the time or expertise to do it themselves, is set up some low cost passive trackers in appropriate tax free wrappers so that people can manage it themselves.

  11. #11
    Master woodacre1983's Avatar
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    Thank you so much for the great advice so far.
    So from this I have taken a subscription to investors chronicle and started to research local IFAs. I will start to read up more on risk and try and get a decent understanding.

    Currently looking over two platforms?

    Nutmeg being one and vanguard being another.


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  12. #12
    Master woodacre1983's Avatar
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    Quote Originally Posted by The Doc View Post
    Agreed.

    An IFA is just like a plumber, you know you could do the job they do. But if you did it yourself it would be sloppy, and come back and bite you.

    One can't be good at everything.

    Outsource your knowledge needs

    6-8% of your monthly into a pension is a good start (>10% ideal) and then 5-10% into varied savings including ISA's etc would be a broad start for volume. But it's the destination for the funds that's the real key.
    Thank you for your advice. My problem and one of the reasons I donít already invest in a pension is the line of work I am in I am paid daily and it is impossible to get an idea on a monthly figure as I may be 3k one month and like from now till September it will be maybe £300 tops!


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  13. #13
    Master Tifa's Avatar
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    Quote Originally Posted by Kingstepper View Post
    Wouldn't bother with IFA....
    Agreed, me neither...I do everything myself also....wire and plumb houses, bricklaying, dentistry, brain surgery, and a little bit of gardening when I have the time. It's all very easy, takes no time at all, and anything you get stuck with is either available on forums or youtube.

  14. #14
    Quote Originally Posted by Tifa View Post
    Agreed, me neither...I do everything myself also....wire and plumb houses, bricklaying, dentistry, brain surgery, and a little bit of gardening when I have the time. It's all very easy, takes no time at all, and anything you get stuck with is either available on forums or youtube.
    Suppose you're one then.

  15. #15
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    Unfortunately Vanguard donít do SIPPs yet though you can buy their highly regarded funds (Lifestrategy etc) in other providers SIPPs eg HL.

  16. #16
    Master ryanb741's Avatar
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    For someone in your position use an IFA at least to start with. You are keen to do the best for your retirement which is half the battle. What you dont have yet is the knowledge as to how to do it and how to maximise tax advantages etc which IMHO you do need an IFA for in order to put you on the right path.

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  17. #17
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    Under those circumstances I would go down the pension route so as to get the tax benefit from the government.

    If you pay for example 6% in then when you earn less you will pay in less. You can usually take a holiday and you can pay more in when you have it.

    You can pick a fund like an ISA for the money to go into but as a pension it will accumulate quicker. My pension goes into an Aegon fund which has a variety of products including cash based, all the way through to higher risk emerging market funds etc

    You can access it at 55 subject to the provisions for that. Obviously an ISA you can access any time but you donít get the tax relief benefit.

    Iíd use an IFA based on a personal recommendation but this government website aims to help with that

    https://www.moneyadviceservice.org.u...744.1562538831

  18. #18
    Quote Originally Posted by woodacre1983 View Post
    Thank you for your advice. My problem and one of the reasons I donít already invest in a pension is the line of work I am in I am paid daily and it is impossible to get an idea on a monthly figure as I may be 3k one month and like from now till September it will be maybe £300 tops!


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    Track every day's earnings for a few months and you'll definitely get an idea of the monthly income. We do this in our business religiously. Knowing exactly what is coming in, and going out, is equally essential in domestic financial settings imho.

  19. #19
    Master stoneyloon's Avatar
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    Are you self employed or ltd company?
    The reason I ask is that you say you get paid daily.

    There's a big difference if you are.


    Cheers,
    Adam.


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  20. #20
    Master woodacre1983's Avatar
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    Quote Originally Posted by stoneyloon View Post
    Are you self employed or ltd company?
    The reason I ask is that you say you get paid daily.

    There's a big difference if you are.


    Cheers,
    Adam.


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    Self employed some trader. I get paid as my students pay me. The grading income is good but sporadic.


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  21. #21
    Master woodacre1983's Avatar
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    Thank you for the great advice so far! I ha e spoken to 4 financial advisors who have all spent time gong through my circumstances and what I am looking at. One is wanting to charge £550 to set up a pension and a couple of funds he says he will research. The others have all advised be no to use a IFA just yet! They all say invest in tracker eg vanguard for a year or so and once you have 15-20k built up then use an IFA as their fees would not make it worthwhile when starting from scratch?

    So I am considering starting using. Hargreaves and getting a stocks and shares ISA and also investing into a vanguard 80 to start me off.



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  22. #22
    Master woodacre1983's Avatar
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    Thought now was a good tone to update this thread.

    I have now set up a Pension through a family friend who is a partner in a wealth management company he took me through a lot of information and guided me this has been set up and a contribution set.
    I have now also got cover of a set monthly amount payable until my youngest is aged 21 if either myself or my partner pass away or are critically ill.
    And to finish off the first step of my future planning I have set up an ISA on HL with the Vanguard 80 and am contributing to this regular.

    I am learning more and more daily through investors chronicle and podcasts.

    Would appreciate any other suggestions going forward. My next plan is to take out a basic lump some life insurance policy for me and my wife for around 100k each to give a nice cushion if something does happen to either of us. Which would allow all debt to be paid and a good amount left over.


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  23. #23
    Quote Originally Posted by Maris View Post
    Unfortunately Vanguard don’t do SIPPs yet though you can buy their highly regarded funds (Lifestrategy etc) in other providers SIPPs eg HL.
    I'm self employed and looking to add to my pension funds so...Vanguard are launching their SIPP very soon, they have said "early 2020". As soon as it opens up i'm going to plough some serious money in.
    I have an ISA with them already - VLS80 - and so far good service and returns - i like their ethos.

  24. #24
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    Quote Originally Posted by woodacre1983 View Post
    Thought now was a good tone to update this thread.

    I have now set up a Pension through a family friend who is a partner in a wealth management company he took me through a lot of information and guided me this has been set up and a contribution set.
    I have now also got cover of a set monthly amount payable until my youngest is aged 21 if either myself or my partner pass away or are critically ill.
    And to finish off the first step of my future planning I have set up an ISA on HL with the Vanguard 80 and am contributing to this regular.

    I am learning more and more daily through investors chronicle and podcasts.

    Would appreciate any other suggestions going forward. My next plan is to take out a basic lump some life insurance policy for me and my wife for around 100k each to give a nice cushion if something does happen to either of us. Which would allow all debt to be paid and a good amount left over.
    The future is uncertain, i.e. you donít know what the performance on any investment will be.

    Two conclusions to be drawn from this:

    1) donít trust any fund manager / stock picker, they also do t know what the future will bring, but they charge you a fee for pretending they do (seems you are already doing this, using Vanguard (cheap index tracker).

    2) the main factor you can control is cost. Always keep your costs down, in practice that means cut out the middlemen, as they charge a fee for their services, too.

    Have you checked whether HL is really the cheapest platform to manage your funds, compared vs. AJ Bell, Interactive Investor etc?
    Whatís the benefit of this Ďfamily friend who is a partner in a wealth management companyĒ? How much does he charge you?

    An example: long term you can expect a stock market performance (on average) in line with the growth rate of the economy (in real terms, post inflation). So letís say thatís 3-5% per year. If your wealth manager charges 1%, and the fund platform another 1% then you have effectively halved the return available to you. My mantra: keep your cost down...

  25. #25
    Master
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    What’s “a partner in a wealth management company”?

    Most if not all wealth management companies are not IFAs and tend to be “biased”, charge higher rates and not offer value for money.

    and why have you set up an ISA investing in Vanguard 80 with HL when you could have done it with Vanguard direct at less cost?

  26. #26
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    Advice from the financial savvy on here.

    Vanguard are soon to launch their own SIPP with industry low account fee of 0.15% - Iím currently in LS80 (Ofc 0.22%) with HL but will switch when they are up and running... why pay 0.45% to HL in fees.

    Trying to sort out my wifes old Friends Life with profits pension to see if moving it to a SIPP would be better, but itís proving a headache.

    EDIT: just saw you are talking ISA not pensions, in which case Vanguard would have been the better platform for investing in LS80.



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  27. #27
    Master Tifa's Avatar
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    Quote Originally Posted by WolfiesPapa View Post

    1) donít trust any fund manager / stock picker, they also do t know what the future will bring, but they charge you a fee for pretending they do (seems you are already doing this, using Vanguard (cheap index tracker).
    Yep, it's dead easy.
    Don't overlook management styles, asset mix, check for due diligence, fund alpha/beta and sharp ratios, taxation etc and you're more or less good to go. Also, know where you need to go with your investments to make growth in a negative or falling market.

    Quote Originally Posted by WolfiesPapa View Post
    Always keep your costs down
    Agree. Costs are certain, performance isn't.

  28. #28
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    The FT on passive /index trackers, quite timely: https://www.ft.com/content/1c4382c6-...3-9a26f8c3cba4

    A login is needed to read the article but an abridged summary would be something like this:
    - Active managers build the market.
    - Passive trackers are great for investors but piggyback on the expertise of others
    - In time - maybe already - too much of the market will be owned by passive trackers for them to remain passive

  29. #29
    Grand Master oldoakknives's Avatar
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    Quote Originally Posted by Kingstepper View Post
    Suppose you're one then.
    It's just democracy.

  30. #30
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    Advice from the financial savvy on here.

    Quote Originally Posted by craig1912 View Post
    What‚Äôs ‚Äúa partner in a wealth management company‚ÄĚ?

    Most if not all wealth management companies are not IFAs and tend to be biasedÄĚ, charge higher rates and not offer value for money.

    and why have you set up an ISA investing in Vanguard 80 with HL when you could have done it with Vanguard direct at less cost?
    I suspect thatís St Jamesís Place. They call everyone Ďípartneríí there, really they are all self-employed (more like a franchise model) I hate St Jamesí Place, bad fees, bad advice (Woodford anyone?)
    Last edited by WolfiesPapa; 16th January 2020 at 23:57.

  31. #31
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    Quote Originally Posted by WolfiesPapa View Post
    I suspect thatís St Jamesís Place. They call everyone Ďpartnerí there, really they are all self-employed (more like a franchise model) i hate St Jamesís Place, Bad fees, bad advice (Woodford antobe?)
    Thatís what I was thinking but didnít say! Wealth Management Company always rings alarm bells for me

  32. #32
    Master woodacre1983's Avatar
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    Quote Originally Posted by WolfiesPapa View Post
    I suspect thatís St Jamesís Place. They call everyone Ďpartnerí there, really they are all self-employed (more like a franchise model) i hate St Jamesís Place, Bad fees, bad advice (Woodford antobe?)
    Thatís the company. Please pm me for more info.


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  33. #33
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    Quote Originally Posted by woodacre1983 View Post
    That’s the company. Please pm me for more info.


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    Plenty of info online

    https://www.thetimes.co.uk/article/w...-off-9q7q0q8z0
    https://chatfieldprivateclient.com/t...-jamess-place/
    https://www.yodelar.com/insights/st-jamess-place-review
    https://www.thetimes.co.uk/article/s...unds-t27nj2k72

    Wolfe’s post sums them up- I know there are two sides to every debate but there is no smoke without fire,there are a lot better options

  34. #34
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    Never put a penny in SJP. If that's where your money is going now then stop immediately and go for a lower cost provider for a SIPP. Your ISA should also be at vanguard (0.15%) instead of HL (0.45%)

    You said you don't have a mortgage? Were you gifted the home outright or are you still paying for it, just not via mortgage?

    If the first then I'd be saving every penny you aren't paying on housing into your (new) SIPP for maximum tax relief. If you are already behind then now is the best time to catch up.

  35. #35
    Master woodacre1983's Avatar
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    Quote Originally Posted by anton863 View Post
    Never put a penny in SJP. If that's where your money is going now then stop immediately and go for a lower cost provider for a SIPP. Your ISA should also be at vanguard (0.15%) instead of HL (0.45%)

    You said you don't have a mortgage? Were you gifted the home outright or are you still paying for it, just not via mortgage?

    If the first then I'd be saving every penny you aren't paying on housing into your (new) SIPP for maximum tax relief. If you are already behind then now is the best time to catch up.
    Ok firstly no I was not gifted the home. And no I am not paying for it any other way. I paid for the home with the loss of both of my parents by the age of 35. Upon losing my dad his house was left to me with a small mortgage on it. We sold this home, the house I grew up in and paid off my dads estate with the money left that I inherited I was able to buy the house me and my wife was renting off her parents. Enabling us to be rent free and mortgage free. I would give it all back tomorrow for my mum and dad back. But I canít.


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  36. #36
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    Apologies, I certainly didn't mean to evoke any bad feelings. Was just trying to get a rough judgement of your outgoings to see how aggressive you could be with the savings.

    At your age you certainly aren't way behind, so no need to be too aggressive. I'd always be looking to save a fairly large amount of your earnings now though, especially when you have lower outgoings than you potentially may have in future if you buy a bigger house etc.

    But most importantly, read up on SJP and get out of that sharp!

  37. #37
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    Quote Originally Posted by anton863 View Post
    Never put a penny in SJP. If that's where your money is going now then stop immediately and go for a lower cost provider for a SIPP. Your ISA should also be at vanguard (0.15%) instead of HL (0.45%).
    Spot on!

    St Jamesís Place (SJP) used to charge exorbitant Exit fees when one wanted to move assets held with them elsewhere.

    Anyone here know if thatís still the case? I seem to remember that this practise was disallowed by the regulator a year ago or so. I sincerely hope so!

    @Orginal Poster: Have you committed to SJP / signed a contract with them?

    The sad reality is that these Ďpartnersí at SJP are a bunch of 3rd tier Ďexpertsí that didnít get a job at Goldman Sachs and now try to go after unsuspecting wealthy(ish) indivuals. Whatever it is, their fees are exorbitant. Avoid! (How much do they charge you for that fancy office youíve met and the ĎadviceĎ?)

    As numerous poster have already written, Vanguard is the place to go. Not only their funds, but open both an ISA and a SIPP (available very soon) with them.

    Then definitely use your annual tax allowance (10k£ for higher rate tax payers) and remember that you can still use your pension allowance for the last 3 (?, please check) years, too. So thatís 40k tax free right there.

  38. #38
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    I'll be retiring in a couple of years and I expect we will be ok.

    But seeing mention of figures at a million etc etc,maybe someone could explain how someone just starting out in work,and who might go thru life in low paid jobs can achieve those numbers!,they can't and won't is my guess.
    It will be hard enough to rent let alone buy a property and save as someone mentioned above,500 to 1k a month for a pension!!.
    Sadly most of the hardest working people on the planet are the lowest paid,and will continue working until ready to drop,they still won't have amassed an amount to keep them if/when they retire,if they even managed to save into a pension!.

    Wise words to say save for your old age,the reality for many is having to actually have enough to exist on now......sad but true.


  39. #39
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    Please can I recommend this book: https://www.amazon.co.uk/Long-Short-.../dp/0954809327

    Does what is says in the tin, at 0.31£ for a used copy (although I suspect Amazonís algorithm might ramp that price up the more of you click on the link?) you canít do much wrong. Really recommended.


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  40. #40
    Master woodacre1983's Avatar
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    Quote Originally Posted by WolfiesPapa View Post
    Spot on!

    St Jamesís Place (SJP) used to charge exorbitant Exit fees when one wanted to move assets held with them elsewhere.

    Anyone here know if thatís still the case? I seem to remember that this practise was disallowed by the regulator a year ago or so. I sincerely hope so!

    @Orginal Poster: Have you committed to SJP / signed a contract with them?

    The sad reality is that these Ďpartnersí at SJP are a bunch of 3rd tier Ďexpertsí that didnít get a job at Goldman Sachs and now try to go after unsuspecting wealthy(ish) indivuals. Whatever it is, their fees are exorbitant. Avoid! (How much do they charge you for that fancy office youíve met and the ĎadviceĎ?)

    As numerous poster have already written, Vanguard is the place to go. Not only their funds, but open both an ISA and a SIPP (available very soon) with them.

    Then definitely use your annual tax allowance (10k£ for higher rate tax payers) and remember that you can still use your pension allowance for the last 3 (?, please check) years, too. So thatís 40k tax free right there.
    I have signed with them and set up a DD but no payment has yet been taken. I have messaged the family friend and sent him the articles. I am looking through the TC now to show the fees for moving elsewhere


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  41. #41
    Master wileeeeeey's Avatar
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    Quote Originally Posted by woodacre1983 View Post
    I have signed with them and set up a DD but no payment has yet been taken. I have messaged the family friend and sent him the articles. I am looking through the TC now to show the fees for moving elsewhere


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    Reading this thread with interest as I'm thinking of starting my own private pension and want to borrow the forum's collective wisdom but from what I've read (and knowing SJP's reputation) I wouldn't bother sending the family friend links so he can objection handle you. Just cancel and back out of it.

  42. #42
    Master woodacre1983's Avatar
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    Advice from the financial savvy on here.

    Ok bad photos Iím sorry but charges as per their tc








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  43. #43
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    Advice from the financial savvy on here.

    Quote Originally Posted by P9CLY View Post
    It will be hard enough to rent let alone buy a property and save as someone mentioned above,500 to 1k a month for a pension!!.
    Sadly most of the hardest working people on the planet are the lowest paid,and will continue working until ready to drop,they still won't have amassed an amount to keep them if/when they retire,if they even managed to save [...]
    Wise words to say save for your old age,the reality for many is having to actually have enough to exist on now...
    Iím sorry but thatís the reality is that thereís no alternative (unless you hope for a future Corbyn-like government that starts expropriating and redistributing accumulated defined contribution schemes).

    Also, compound interest is your friend: the earlier you start and the lower you keep the cost the more youíll end up with.

    Could not anyone save 200£ a month?

    Thatís maybe one watch less to purchase per year, maybe Netflix rather than the Sky Mega package, maybe a few pints less on a weekend.

    Itís about priorities.
    Not trying isnít really the solution I think.

  44. #44
    Journeyman
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    Quote Originally Posted by woodacre1983 View Post
    Ok bad photos Iím sorry but charges as per their tc








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    Iím not a lawyer. Any clauses on exit charges? Cooling off period maybe (i.e. your cancellation right within a certain period).

    Iím sorry if youíre losing a family friend over this, but really if he was a true friend he would have not advised to to invest with them...

  45. #45
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    Quote Originally Posted by WolfiesPapa View Post
    Iím sorry but thatís the reality is that thereís no alternative (unless you hope for a future Corbyn-like government that starts expropriating and redistributing accumulated defined contribution schemes).

    Also, compound interest is your friend: the earlier you start and the lower you keep the cost the more youíll end up with.

    Could not anyone save 200£ a month?

    Thatís maybe one watch less to purchase per year, maybe Netflix rather than the Sky Mega package, maybe a few pints less on a weekend.

    Itís about priorities.
    Not trying isnít really the solution I think.
    I think you'd need to ask the poorest person you know personally,and ask them if they have £200 spare each month.I agree priorities are paramount,but not to the point of not having what most take for granted whilst on a much higher income and standard of living.Making sacrifices on a day to day basis to hopefully have something when retiring at maybe 66!,I suppose that's what some people make their decisions on,whether it be the correct decision who knows.

    I still maintain not everyone can save,and if they did it wouldn't amount to a great pension tbh......IMO.


  46. #46
    Master woodacre1983's Avatar
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    There is no cancellation terms in the tc!

    There is this though on early withdrawal charges


    https://i.imgur.com/zEGBtLU.jpg


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  47. #47
    Master wileeeeeey's Avatar
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    I guess the big question is how much did you put in with them? You said you signed a direct debit but haven't paid yet? Is it as simple as 6% of nothing?

  48. #48
    Master woodacre1983's Avatar
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    Quote Originally Posted by wileeeeeey View Post
    I guess the big question is how much did you put in with them? You said you signed a direct debit but haven't paid yet? Is it as simple as 6% of nothing?
    I have put zero in atm. So I am presuming I can just pull out. I will be asking that on the call tomorrow.

    So my question now is wait for vanguard or what other SIPP providers are recommended?


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  49. #49
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    Quote Originally Posted by WolfiesPapa View Post
    Iím not a lawyer. Any clauses on exit charges? Cooling off period maybe (i.e. your cancellation right within a certain period).

    Iím sorry if youíre losing a family friend over this, but really if he was a true friend he would have not advised to to invest with them...
    Agree with this donít go with them. You could do far better- even DIY option with A J Bell and a Vanguard Lifestrategy fund.

    those charges are what I expected and are too high.

    Just as an example I paid my IFA 1.5% initially and my TOTAL ongoing charges are 0.7%

    Charges impact massively on your final fund as itís not just the charge in any year but the loss of compound growth in the years after.

  50. #50
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    Interesting thread, which I have skimmed through just now.

    Are most people carrying out these sort of investments as an alternative or alongside employer administers pensions. For example my works pension is administered by Royal London. I had originally opted out but planning to get in it soon. Given the tax advantages I am assuming all who are on PAYE are in their work administered schemes? Or am i missing something!?

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