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Pension recommendations

richardg

richardg

Admonishtrator
I have a small private penison of 150k with Old Mutuel Wealth. I made 5% this year, having seen it lose about 25% during Coronavirus. And then it bounce back with a bit extra. I'm only 3.5 years from cashing it in and using it to invest in my business, which has grown in stock and cash by 400% in 3 years from a 50k start. I believe in that and myself more than other people.

I don't want it in managed funds with risks attached any more. Old Mutuel Wealth said that, in my product type, the lowest risk funds I can select are 3/10 (way too high). I said I want zero risk and could not believe they cannot offer me it.

So I want to get it out and put it in cash for 3.5 years, as I don't really trust things to be that stable. I hope to find a way where I pay no transfer fees, I pay no service fees or fund fees, since I don't expect any interest. You can have my 150 k for 3 years and then just give it back to me. I hope that offering someone 150k for 3 years with no interest to pay me is attractive enough for some pension company to do it for nothing.

Does it exist?
 
Also there are rules and tax considerations when cashing in a private pension rather than a transfer.

Cheers,

DV
 
richardg said:
I hope to find a way where I pay no transfer fees, I pay no service fees or fund fees, since I don't expect any interest.
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You forgot "no tax to pay". If you find that, keep it quiet - the supplier's IT would crash within seconds. Do you believe in fairies too?
 
Vinny said:
You forgot "no tax to pay". If you find that, keep it quiet - the supplier's IT would crash within seconds. Do you believe in fairies too?
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The tax we can deal with when I am 55 and cash it in. For now, noone wants a free loan? I must be charged too? Does not make sense.
 
Vinny said:
Only because you do not understand the financial world. Which is why you should not rely on anything posted here.

The tax bill would also be pretty huge on cashing-in 150K in one go.
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I will revert on your first point when I have finished looking around.

On the second point, yes I know, there is no way around it. I'll still be working when I cash in so there is no interest in taking bits out per year for me.

I reckon I can double whatever I get within 12-24 months of investing in my business. That's because I am a badass.
 
There is no such thing as 'zero' risk.
richardg said:
I will revert on your first point when I have finished looking around.

On the second point, yes I know, there is no way around it. I'll still be working when I cash in so there is no interest in taking bits out per year for me.

I reckon I can double whatever I get within 12-24 months of investing in my business. That's because I am a badass.
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You really are in need of professional advice. With a pension 'pot' of £150K a wealth manager will give you a free initial consultation. Of course you can engage with as many managers as you like and then either choose to go with one or not.

There is a lot more to the maths than just the value of your 'pot'.

Over the last 10 years and after costs (including wealth management) my pension pot has grown 80% approx.

Cheers,

DV
 
Darth Vader said:
There is no such thing as 'zero' risk.

You really are in need of professional advice. With a pension 'pot' of £150K a wealth manager will give you a free initial consultation. Of course you can engage with as many managers as you like and then either choose to go with one or not.

There is a lot more to the maths than just the value of your 'pot'.

Over the last 10 years and after costs (including wealth management) my pension pot has grown 80% approx.

Cheers,

DV
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Mine has more than doubled in the same period. I got fed up of advice and underperforming fund managers and just gambled, switching from a ftse tracker to cash and back to ftse and so on. Worked well. I got lucky.
 
richardg said:
The tax we can deal with when I am 55 and cash it in. For now, noone wants a free loan? I must be charged too? Does not make sense.
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I have a great IFA who is also a friend. He has insurance to pay, due diligence charges, bank charges, subscriptions for various services, an administrator, office charges for kit and storage and travel costs. He charges me the absolute minimum he can and is open about his costs. I reckon he would lose a 4-figure sum on you every year
 
richardg said:
I will revert on your first point when I have finished looking around.

On the second point, yes I know, there is no way around it. I'll still be working when I cash in so there is no interest in taking bits out per year for me.

I reckon I can double whatever I get within 12-24 months of investing in my business. That's because I am a badass.
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If you cash it in at 55 you'll get 25% tax-free but the rest will be taxed at your marginal rate, some I which I expect will be taxed at 45% - or even 60% for a portion of it. You do need advice and you may even not be able to cash it in without advice.
 
hc25036 said:
I have a great IFA who is also a friend. He has insurance to pay, due diligence charges, bank charges, subscriptions for various services, an administrator, office charges for kit and storage and travel costs. He charges me the absolute minimum he can and is open about his costs. I reckon he would lose a 4-figure sum on you every year
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Funny system...however, I have made progress. I just called James Hay. I said if I give you 150k now, can you promise to get me 150k back in 3 and a half years. He said he can. Let's see how this pans out. More tomorrow.
 
clivem2 said:
If you cash it in at 55 you'll get 25% tax-free but the rest will be taxed at your marginal rate, some I which I expect will be taxed at 45% - or even 60% for a portion of it. You do need advice and you may even not be able to cash it in without advice.
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OK, but I am not interested in this point about taxation really. That's something to navigate nearer the time.
 
richardg said:
OK, but I am not interested in this point about taxation really. That's something to navigate nearer the time.
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As it's only 3.5 years away don't you need have at least an outline plan? If you expect to get 150k out in 3.5 years in a single tax there's no way that's going to happen...you'll likely achieve south of 100k.
 
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