Reply to: CUK Pension Poll

[lukemg]

What DP said x100...
IF you haven't got a clue I guess there are certain times an IFA (no idea what an FSA is - thought they had disbanded it ?) might be considered but I can't think of any, it's just not worth the cost (no matter how well it's hidden)
Specialist contractor money people did sort my mortgage, that was justified and they were 'paid' by the provider - fine.
Here is a quick test - If you go to an IFA/FSA and you are interested in a Shares/funds ISA/investment and they don't advise that the vast majority (>80%) goes into v.low-cost index funds using PCA (less than 0.5%/yr cost) then don't walk out RUN AWAY.
They never will because these funds pay chuff all in commission even though they are definitely the best way for novice investors to get exposure.
GLA, I know the money comes in easy but try not to give it away just as easy after you get it. A fool and his money....

[DimPrawn]

Yes, providing a valuable service. I've better things to do with my time than scour every single pension, mortgage, etc, on the market.

DP is either very stupid or has a very empty life.

It has to be an or?

[d000hg]

They have to earn their money somehow.

Yes, providing a valuable service. I've better things to do with my time than scour every single pension, mortgage, etc, on the market.

DP is either very stupid or has a very empty life.

[Bunk]

Loads of FSA lost their jobs this year. Some new rules came in to stop the banks dodging tax which has meant they let all their FSA's go

I was talking to one about it, he's training to become a plumber right now

It was the Retail Distribution Review, and yes, a lot of financial advisers lost their jobs as banks are erring on the side of caution now, terrified of mis-selling anything.

Edit: Oh, and it was nothing to do with the banks dodging tax, it was because they weren't evaluating customers needs properly when advising them on investments.

[DimPrawn]

Nowt wrong with using a FSA as long as you aren't the one paying them.

Probably the most idiotic thing I've ever read on CUK.

[EternalOptimist]

They have to earn their money somehow. And one way or another you are paying for the advice.

Loads of FSA lost their jobs this year. Some new rules came in to stop the banks dodging tax which has meant they let all their FSA's go

I was talking to one about it, he's training to become a plumber right now

[eek]

Nowt wrong with using a FSA as long as you aren't the one paying them.

They have to earn their money somehow. And one way or another you are paying for the advice.

[d000hg]

Nowt wrong with using a FSA as long as you aren't the one paying them.

[DimPrawn]

Hungary-Poland: Private pension funds seized | Presseurop.eu: European news, cartoons and press reviews

[lukemg]

Agreed, this is definitely one way to go at it ! Trouble is, most people have a tendency to piss it up the wall on tulip they don't need to compensate for the tulip they have to do to earn it - rinse and repeat with the illusion of freedom.
Used to do the same but now I want my money earning money and giving me the choice to work if/when and where I like - THAT is a proper luxury.

[DimPrawn]

Shocking level of financial ignorance being displayed on this thread.
Pension is simply deferred spending (just as a loan is spending in advance), the vehicle used is important but can be much more varied than chucking at a traditional pension co (bordering on madness).
You won't be able to work forever and you will hopefully need resources compunding up from now to finance your life.
SIPP is one weapon in the armoury but only after your ISA is used up.
No idea what to do ? Start with fool.co.uk.
Low cost indexes or simply a Vanguard 80:20 lifestyle fund, regular monthly investment (HL or other online broker).
Check out Lazy portfolios too if you have no interest.
FFS don't cough the lot at expensive funds or individual shares and defo not a financial advisor, all will scoop up the cream on top.
Sobering thought - estimates say you should be stashing half your age as a percent of income...

Agree with main points:

Pension is simply deferred spending/tax on income. It ain't as some people seem to think free money from the taxman.

Financial adviser =

Pension funds is a no no. Some other creams it all off.

ISA first THEN pension if you must.

Manage it yourself via SIPP.


BUT, why bother?

If you have spare money buy the biggest **** off house you can and borrow as much as they will lend at the lowest rate. Enjoy the money now, a lot of people will be dead/terminally ill, alone and infirm by the time they get their hands on the loot.

[lukemg]

Shocking level of financial ignorance being displayed on this thread.
Pension is simply deferred spending (just as a loan is spending in advance), the vehicle used is important but can be much more varied than chucking at a traditional pension co (bordering on madness).
You won't be able to work forever and you will hopefully need resources compunding up from now to finance your life.
SIPP is one weapon in the armoury but only after your ISA is used up.
No idea what to do ? Start with fool.co.uk.
Low cost indexes or simply a Vanguard 80:20 lifestyle fund, regular monthly investment (HL or other online broker).
Check out Lazy portfolios too if you have no interest.
FFS don't cough the lot at expensive funds or individual shares and defo not a financial advisor, all will scoop up the cream on top.
Sobering thought - estimates say you should be stashing half your age as a percent of income...

[DimPrawn]

Did the Supreme Court just write down your pension? - MoneyWeekMoneyWeek

I can’t believe what’s happening. One of the most important changes ever made to pension law has just gone down without anyone batting an eyelid. This is a disaster for millions in this country. But it’s barely been reported in the press!

The Supreme Court just ruled that if a company goes into liquidation, pension obligations won’t be considered priority creditors any longer. They’ll now rank with all the other flimsy unsecured creditors.

With the Detroit bankruptcy still fresh in my mind – you know, the one where pensioners stand to lose some 80% of their retirement pay – this decision means I’m going to change my pension arrangements.

This decision overturns 150 years of precedent law. It’s a massive win for the banks and the finance industry. It means bankers can now pump up businesses (as they have individuals) full of debt, knowing that those pesky pensioners won’t mess up the deal.

[Paddy]

Considering I got less than I paid in for my Standard Life Policy, I would not recommend a pension plan

[AtW]

If Govt wanted people to save money why would not they remove income tax on interest received?

Or reduce capital gains tax on long term investments?

Or remove limit on ISAs?

Yet, they allow more or less unlimited tax free pension savings, how kind of them

They might continue to print money for next few decades, so any money put into pensions will be devalued anyway.

Pensions only make good sense for public servants like Lord Merv who had their pension pots topped up by ... taxpayers to the tune of many millions.

So basically, it makes sense if it's somebody elses money (taxpayer/firm) and you are pretty close to retirement anyway, as well as being in good health.

For everybody else it's complete and utter con.

P.S. You will remember what I said whilst waiting in a bread queue with a wheelbarrow full of banknotes...