Hiya Pete, really interesting thought experiment…..as you state in the video we’re all different and the scores being posted int the comments only go to support that. I scored myself 2,5,5,2,3…..18 months into early retirement and the cashflow ladder you coach really supports the scores I gave myself. Thanks for the content👍
Interesting video as usual Pete. I am intrigued to know where this content is heading next. I would put myself at about 5,4,3,2,3. But the risk factor is complicated, probably (1+5)/2 🤔
My only 5 was for Guarantees. There again I am still fretting about spending £20K on a new (used) car while having many times that saved. As for the second and third points I am now following Warren Buffet's advice regarding trackers, adding in £ cost averaging for good measure. I haven't even looked at how this years is doing but ones I took out years ago look good. p.s. I will add my score. 53432. Regarding the last my wife will get a paid off house and a widows pension so don't feel sorry for her.
I am curious to hear what number did you give to your 5 factors. Let me know below. I will bring all that together in the next video so stay tuned. Also, anyone spot the 'deliberate mistake?!'
Aside from the scales having 6 notches, I didn't see any errors. My spouse and I scored separately, just to compare individual perceptions. It was about what we expected, when we compared notes later! Wife: 3 . 4 . 4 . 2 . 3 Hubs: 4 . 2 . 3 . 1 . 4 Lest you think us heartless, we have no children, so factor four is not of major consideration for us. ☺️
Hi Pete. I've been investing for over a decade and retired a year ago with a work place pension. My investments dropped by around 40k in 2022 but are on the way back. Experience has taught me not to panic and I'm comfortable with market ups and downs. I favour spending as much of my money as a can and intend to take lump sums out twice a year to cover luxury costs/expenses. The size of the lump sums will be determined by market performance. I expect my spending to slow as I get older so plan to use around 50% of my investments by the age of 75 - If I'm still alive and kicking of course. I'm treating the state pension as a bonus and haven't factored that in too much but it should help. I like you raising the issue of risk as it is THE most important thing for an individual to manage.
Another great vid. I scored 25555. I've a DC pension and have seen markets crash and recover a few times since the 70s so I'm fine with volatility. Keep 12 months spend in cash which is more than I'd like but it lets me sleep at night. Invest the rest in 100% equities to maximize gains. Kids are going to have it tougher than me when they retire so I want to leave them as much as I can. Hope to live to 90 but plan for 100
Just found this superb informative channel. Would you please do a video for those who are single and have their own home plus a pension pot in 10yr stages. My situation age 63 own my own home 230k, pension pot 100k, with no dependents! Not sure what to do!!! Thanks again for excellent advice and information
I find your videos incredibly helpful Pete .. big thank you for the education. I have a question - I’m restricted from personally investing more than £4k per annum (gross) into my SIPP due to tapered allowance rules. Would this rule still be the same if I convinced my employer to invest in my pension direct instead of paying me the money net of tax to invest? I suspect not but I really would like to find a way to invest more into my SIPP as I’m 52 and balance is a long way off my target for retirement.
Hi Pete Glad your health is improving and looking forward to more great content in 2023! Not sure if you can cover either by video or podcast, but can you cover something for all the cautious investors who have a large bond portfolio, to help us understand the long and short term consequences of the large declines? Can you explain anything we could or should be doing to help improve things? Any other information concerning bonds and what we should know the better as I had only looked at them as a safe investment before and being in retirement without the means to add much more to investment this is a worrying time. Thanks Dave
2-5-5-4-3 But I feel some of the factors interact. Need for guarantees, need met by lower growth income investing. Manage investments, need met by experience and training up kids who have LPA, low input investment strategy. Risk, have seen portfolio halve in value, it hurt but income held up and portfolio recovered. Legacy, hedging bets by not drawing maximum to fund risk of longevity, medical or care needs, residual becomes a legacy. Expectations of longevity, how long is a piece of string and how lucky do I feel, can't control the unknowable but covered by above, I hope! Good to think of these factors.
Decades ago I knew a lady who was on four times my salary predicting how long people would live. She was an actuary for a Life Insurance company. The funny thing was her husband was a Vicar so maybe she got inside information.
I'm a disaster area when it comes to my affect. I can't convince myself I won't live forever, and I don't get any particular enjoyment from things I can buy. At one level I wish I'd saved less! I've 33/80ths defined benefits in the teacher's scheme. That, with the benefit of hindsight, would have been more than enough. People don't realise that it is possible to overdo it on the prudent side.
It definitely is. It’s so important not to rob today just to save for tomorrow. It’s a fine line but having too much money saved/income accrued is pointless.
Hi I really need some help…. I am 38 and like to consider that I am ok with money apart from one area (my pension) I got into sales in my early 20s and I was never enrolled into a pension. I was auto enrolled a couple of years ago but myself and the company just put in the minimum amount. I have roughly £100k saved up, I have business I run as a side hustle. Although I have savings I don’t actually have a pension and don’t know where to start. Shall I start just putting a minimum amount away each month or shall I use a chunk of my savings to get it started.
Hi Andrew. The key benefit of pensions is the tax relief that you get for contributing. I would try to increase what you’re putting in and see if your employer will match it. If not, it’s still worth doing. You could also ask about salary sacrifice as an even more efficient way of contributing. Just remember that access to pension money is not possible until at least age 55 and this will be rising to 58 in a few years. That’s the flip-side to the tax benefits. Other than that, think of a pension as simply another account you can save into. Learn about the underlying investments inside the pension (plenty of info on my channel, plus a very specific video on this subject coming in a few weeks). Good luck!
Great video. 3,4,3,3,4 Pete - i have a final salary NHS pension but i'm working again (non-NHS position)- can i add to a SIPP up to my new level of paid income? Thank you!
Factor 2, ability to manage your portfolio, may change dramatically over time as you age and risk cognitive decline. So make the decision for both present and future self as well as for a surviving spouse.
That is why the world's most successful investor (Warren Buffett) recommends trackers to his family. I have switched to them myself having found the most difficult part of investing is knowing when to sell.
Great video, I am 56 now. Can take my pension now but don't want to whilst I'm working. I'd say is 2.5 is my need for guarantees. Ability to manage my finances 2. My attitude to risk is 2. My desire to leave a legacy 5. My expectation of longevity is 3. Very thought provoking.
If you open a SIPP, put in say £10,000 the taxman, HMRC will add £2500 if you are a basic rate tax payer. I am a retired chartered accountant, tax expert and also qualified as a corporate treasurer. A When I retired in 2015 I had to obtain regulated Financial Advice to consolidate pensions into a SIPP. I fired the Chartered Financial Planner ASAP . I had lost control over my investments by following the rules. I scored 0 for the Chartered Financial Planner, just marketing and talk. I am 67 and retired 20 years ago, I manage and monitor my investments daily!
Interesting video and thought provoking… I have some stocks and shares investments that i am very hands off with, but as I lived abroad, I don’t have a work pension, so I invested in property.. Also, i don’t have children, but I do have nieces. My “guaranteed” income is rent (which isn’t guaranteed, but is the closest I could get), so am “happy” to weather the storm with S&S, and property value, but less happy if it’s my rental income… I want to spend all my cash including S&S whilst I am alive, but happy to leave my property to my nieces.. I gave myself 4, 4, 3, 2, and 5 (I have a great aunt who lives by herself and is 105!!!)… Dying to find out more on the next video….
4,3,2,1,5 Quick question Pete, i'm in my late twenties and have always paid into my workplace pension. I've recently started paying into a stock & shares ISA with Nutmeg for the long haul. Should I be putting this money into a LISA (for the 25% bonus) as the intention is to not touch it, or should I keep the penalty-free ability to take money out if needed? Love your videos! Thank you
If your intension is to leave it in there long term 10+ years then S&S ISA. If you are intending to buy a home with it in the nect 5 years then a LISA should be your focus. I currently pay into both but the figures for return is much higher on S&S ISA due to compounding. Currently LISA gets a pitiful ammount of interest. The main attraction is 25%on your yearly contribution. Over the long run compounding in stocks smashes this.
@@ispyviidz8069 ah thank you, i should have said, the LISA with nutmeg is a S&S LISA so i'd still get the compounding as well as the 25%. Just not sure about the penalty is all. Cheers though
Firstly let me thank you for the superb content on your channel, i fond the information seriously though provoking, presented in a straightforward approach that's easy to understand. I would however be very interested if you could cover what happens to pensions when you die. What happens to the fund. Who does it go to and am i able to have a say in this?
Love the content, and enjoyed the video as always. However, I have to say that the scale drove me mad!! You only need 3 tick marks between 1 and 5!!! (Or does each mark represent 1.2? I know this is just a thought experiment, but I found myself staring at the scale every time it appeared🤣
I am not an FCA regulated Financial Advisor. I appointed a Chartered Financial Planner as regulated to move pensions into a SIPP. As a chartered accountant , also qualified as a corporate treasurer, and as a FTSE plc Group Treasurer managed my investments and the financial risks of the plc. I am not able to provide financial advice , I fired the Financial Advisor who warned me not to exit the Woodford Fund in December 2016. I am a high risk investor . I took back control over my investments and researched into the exams to qualify as an FCA regulated advisor. Does a doctor ask a nurse for advice? I retired 20 years ago and enjoy research and read between the lines!
You can’t leave us hanging like that!☺️Great video as always, very curious where you’re taking us with this🤔
3,5,4,4,5 Very positive about the future and my longevity. Having the right mental attitude goes a long way.
Great video as usual
Glad you enjoyed it - thank you!
I scored 4,5,5,4,3. Was the deliberate mistake that on the scale there were 4 marks between 1 and 5, not 3.
Hiya Pete, really interesting thought experiment…..as you state in the video we’re all different and the scores being posted int the comments only go to support that. I scored myself 2,5,5,2,3…..18 months into early retirement and the cashflow ladder you coach really supports the scores I gave myself. Thanks for the content👍
Thanks as always. 4,5,5,2,3 for me.
Pete, 2,4,5,1,4. Looking forward to debrief on next vid.
Very useful as usual
Interesting video as usual Pete. I am intrigued to know where this content is heading next. I would put myself at about 5,4,3,2,3. But the risk factor is complicated, probably (1+5)/2 🤔
My only 5 was for Guarantees. There again I am still fretting about spending £20K on a new (used) car while having many times that saved. As for the second and third points I am now following Warren Buffet's advice regarding trackers, adding in £ cost averaging for good measure. I haven't even looked at how this years is doing but ones I took out years ago look good.
p.s. I will add my score. 53432. Regarding the last my wife will get a paid off house and a widows pension so don't feel sorry for her.
I am curious to hear what number did you give to your 5 factors. Let me know below. I will bring all that together in the next video so stay tuned. Also, anyone spot the 'deliberate mistake?!'
The scales were marked 1-5 but there were 6 points on the scales
Aside from the scales having 6 notches, I didn't see any errors. My spouse and I scored separately, just to compare individual perceptions. It was about what we expected, when we compared notes later!
Wife: 3 . 4 . 4 . 2 . 3
Hubs: 4 . 2 . 3 . 1 . 4
Lest you think us heartless, we have no children, so factor four is not of major consideration for us.
☺️
Fence panels and posts!
Hi Pete.
I've been investing for over a decade and retired a year ago with a work place pension.
My investments dropped by around 40k in 2022 but are on the way back. Experience has taught me not to panic and I'm comfortable with market ups and downs.
I favour spending as much of my money as a can and intend to take lump sums out twice a year to cover luxury costs/expenses. The size of the lump sums will be determined by market performance.
I expect my spending to slow as I get older so plan to use around 50% of my investments by the age of 75 - If I'm still alive and kicking of course.
I'm treating the state pension as a bonus and haven't factored that in too much but it should help.
I like you raising the issue of risk as it is THE most important thing for an individual to manage.
Another great vid. I scored 25555. I've a DC pension and have seen markets crash and recover a few times since the 70s so I'm fine with volatility. Keep 12 months spend in cash which is more than I'd like but it lets me sleep at night. Invest the rest in 100% equities to maximize gains. Kids are going to have it tougher than me when they retire so I want to leave them as much as I can. Hope to live to 90 but plan for 100
Excellent video Pete, 5, 2, 2, 2, 3
Just found this superb informative channel. Would you please do a video for those who are single and have their own home plus a pension pot in 10yr stages.
My situation age 63 own my own home 230k, pension pot 100k, with no dependents! Not sure what to do!!! Thanks again for excellent advice and information
I find your videos incredibly helpful Pete .. big thank you for the education. I have a question - I’m restricted from personally investing more than £4k per annum (gross) into my SIPP due to tapered allowance rules. Would this rule still be the same if I convinced my employer to invest in my pension direct instead of paying me the money net of tax to invest? I suspect not but I really would like to find a way to invest more into my SIPP as I’m 52 and balance is a long way off my target for retirement.
Your allowance is the same no matter who’s paying, Robin, unfortunately! You might want to look into VCTs as an alternative, but tread carefully.
2,4,5,4,4
Great video as ever.
4,3,3,1,3
Not all people have kids, you mention charities but dearly loved nieces, nephews etc aka other relatives also important
Hi Pete
Glad your health is improving and looking forward to more great content in 2023!
Not sure if you can cover either by video or podcast, but can you cover something for all the cautious investors who have a large bond portfolio, to help us understand the long and short term consequences of the large declines? Can you explain anything we could or should be doing to help improve things? Any other information concerning bonds and what we should know the better as I had only looked at them as a safe investment before and being in retirement without the means to add much more to investment this is a worrying time. Thanks Dave
Good question Dave - watch this space…
2-5-5-4-3
But I feel some of the factors interact.
Need for guarantees, need met by lower growth income investing.
Manage investments, need met by experience and training up kids who have LPA, low input investment strategy.
Risk, have seen portfolio halve in value, it hurt but income held up and portfolio recovered.
Legacy, hedging bets by not drawing maximum to fund risk of longevity, medical or care needs, residual becomes a legacy.
Expectations of longevity, how long is a piece of string and how lucky do I feel, can't control the unknowable but covered by above, I hope!
Good to think of these factors.
Oh, there's LOTS of interaction between the factors - stay tuned this week!
Decades ago I knew a lady who was on four times my salary predicting how long people would live. She was an actuary for a Life Insurance company. The funny thing was her husband was a Vicar so maybe she got inside information.
I'm a disaster area when it comes to my affect. I can't convince myself I won't live forever, and I don't get any particular enjoyment from things I can buy. At one level I wish I'd saved less! I've 33/80ths defined benefits in the teacher's scheme. That, with the benefit of hindsight, would have been more than enough. People don't realise that it is possible to overdo it on the prudent side.
It definitely is. It’s so important not to rob today just to save for tomorrow. It’s a fine line but having too much money saved/income accrued is pointless.
A colleague worked to 67, determined to not have any reduction in income when he retired. He is now 76 still enjoying spending it.
Is the national minimum pension age changing in 2023?
Hi
I really need some help…. I am 38 and like to consider that I am ok with money apart from one area (my pension) I got into sales in my early 20s and I was never enrolled into a pension. I was auto enrolled a couple of years ago but myself and the company just put in the minimum amount.
I have roughly £100k saved up, I have business I run as a side hustle.
Although I have savings I don’t actually have a pension and don’t know where to start.
Shall I start just putting a minimum amount away each month or shall I use a chunk of my savings to get it started.
Hi Andrew. The key benefit of pensions is the tax relief that you get for contributing. I would try to increase what you’re putting in and see if your employer will match it. If not, it’s still worth doing. You could also ask about salary sacrifice as an even more efficient way of contributing. Just remember that access to pension money is not possible until at least age 55 and this will be rising to 58 in a few years. That’s the flip-side to the tax benefits.
Other than that, think of a pension as simply another account you can save into. Learn about the underlying investments inside the pension (plenty of info on my channel, plus a very specific video on this subject coming in a few weeks).
Good luck!
Great video. 3,4,3,3,4 Pete - i have a final salary NHS pension but i'm working again (non-NHS position)- can i add to a SIPP up to my new level of paid income? Thank you!
Yes, most likely. The NHS pension income isn’t relevant earnings, so you can’t contribute based on that figure, but you can based on your job salary.
@@MeaningfulMoney Thank you!
Factor 2, ability to manage your portfolio, may change dramatically over time as you age and risk cognitive decline. So make the decision for both present and future self as well as for a surviving spouse.
This is so true, Mike - and a reason why it's important to review these factors throughout retirement.
That is why the world's most successful investor (Warren Buffett) recommends trackers to his family. I have switched to them myself having found the most difficult part of investing is knowing when to sell.
Great video, I am 56 now.
Can take my pension now but don't want to whilst I'm working.
I'd say is 2.5 is my need for guarantees.
Ability to manage my finances 2.
My attitude to risk is 2.
My desire to leave a legacy 5.
My expectation of longevity is 3.
Very thought provoking.
If you open a SIPP, put in say £10,000 the taxman, HMRC will add £2500 if you are a basic rate tax payer. I am a retired chartered accountant, tax expert and also qualified as a corporate treasurer. A When I retired in 2015 I had to obtain regulated Financial Advice to consolidate pensions into a SIPP. I fired the Chartered Financial Planner ASAP . I had lost control over my investments by following the rules. I scored 0 for the Chartered Financial Planner, just marketing and talk. I am 67 and retired 20 years ago, I manage and monitor my investments daily!
3/3/3/4/3
Interesting scales Pete!! 🤣Great content, love the channel.
🤦🏻♂️
4,3,3,3,3
Nice 👍🏻
Thank you and great content as always, between Damian and yourself Pete, I always listen to the advice. 4/1/4/1/5.
Interesting video and thought provoking… I have some stocks and shares investments that i am very hands off with, but as I lived abroad, I don’t have a work pension, so I invested in property.. Also, i don’t have children, but I do have nieces. My “guaranteed” income is rent (which isn’t guaranteed, but is the closest I could get), so am “happy” to weather the storm with S&S, and property value, but less happy if it’s my rental income… I want to spend all my cash including S&S whilst I am alive, but happy to leave my property to my nieces.. I gave myself 4, 4, 3, 2, and 5 (I have a great aunt who lives by herself and is 105!!!)… Dying to find out more on the next video….
4,3,2,1,5
Quick question Pete, i'm in my late twenties and have always paid into my workplace pension. I've recently started paying into a stock & shares ISA with Nutmeg for the long haul. Should I be putting this money into a LISA (for the 25% bonus) as the intention is to not touch it, or should I keep the penalty-free ability to take money out if needed?
Love your videos! Thank you
If your intension is to leave it in there long term 10+ years then S&S ISA. If you are intending to buy a home with it in the nect 5 years then a LISA should be your focus.
I currently pay into both but the figures for return is much higher on S&S ISA due to compounding.
Currently LISA gets a pitiful ammount of interest. The main attraction is 25%on your yearly contribution. Over the long run compounding in stocks smashes this.
@@ispyviidz8069 ah thank you, i should have said, the LISA with nutmeg is a S&S LISA so i'd still get the compounding as well as the 25%. Just not sure about the penalty is all. Cheers though
@@ispyviidz8069 Also im very fortunate to have a house already so its just for pension reasons!
2, 4, 4, 5, 3
3,2,4,1,4 😊
2/3/3/3/3 for me
Your scales have 6 'notches', not 5! :D
Spotted that after uploading! Ah well...
Each block counts as 1.
Most see the doughnut, but some can only see the hole !
Keeps jumping frames cant watch this
Jumping frames? Not sure what you mean...
@@MeaningfulMoney My guess is the crop jumps etc 4:17 4:36 No a problem really, looks fine to me.
I got a 7
Or was that my dance score 🤔
2 4 4 3 5
53243
Excellent video as ever, great method of breaking down each individual, need, wants and circumstances. Can't wait for the follow-up!
3,5,5,1,4
Firstly let me thank you for the superb content on your channel, i fond the information seriously though provoking, presented in a straightforward approach that's easy to understand. I would however be very interested if you could cover what happens to pensions when you die. What happens to the fund. Who does it go to and am i able to have a say in this?
Hurry up with the next video…..cheers
Love the content, and enjoyed the video as always. However, I have to say that the scale drove me mad!! You only need 3 tick marks between 1 and 5!!! (Or does each mark represent 1.2? I know this is just a thought experiment, but I found myself staring at the scale every time it appeared🤣
Yeah, we missed that - sorry to cause you so much angst!
very informative as usual
Great video Pete, 3, 5, 3, 1, 4
Thanks Pete, great video. It would be good to have a downloadable calculator in the Retirement Academy relating to this and the follow-up video.
It’ll need a bit of refinement yet, but this is a big subject with me and I’ll definitely be adding to the Academy in due course
You tease!
Great video, 3,5,4,5,3
Glad you enjoyed it!
5/5/4/4/4
Thank you
You're very welcome - thanks for watching!
Your 1-5 scores have 6 points. 🤣
I am not an FCA regulated Financial Advisor. I appointed a Chartered Financial Planner as regulated to move pensions into a SIPP. As a chartered accountant , also qualified as a corporate treasurer, and as a FTSE plc Group Treasurer managed my investments and the financial risks of the plc. I am not able to provide financial advice , I fired the Financial Advisor who warned me not to exit the Woodford Fund in December 2016. I am a high risk investor . I took back control over my investments and researched into the exams to qualify as an FCA regulated advisor. Does a doctor ask a nurse for advice? I retired 20 years ago and enjoy research and read between the lines!
I scored 2; 4 ; 4 ; 4; 4 . I have dB, property and DC so a reasonable blend of sources
1/4/4/3/4 😊
Good to know!
5,1,1,4,4 Cheers
3,5,5,2,2 cheers