Let me know how you find these videos - I love hearing from you and try to respond as much as I can! You might find this interesting too: 🔴 ruclips.net/video/jEbYkc1EwZc/видео.html - Pension Death Benefits
Another excellent video. I'm pleased to say that, having just retired at 62, what I have invested / kept in cash, etc, is pretty much in line with what Pete recommends. Maybe that's just luck, or common sense - but it did take some working out by me, and un-aided too. In fact, I'm so pleased about that, I think I'll treat myself & turn the central heating on. Whoo-hoo!
That was really helpful, particularly the concept of breaking down your needs over specific time periods and allocating risk levels to each one. As I get within a year of taking early retirement I'm finding your channel more and more useful, thank you.
Thanks Pete, I really enjoyed this video. I was someone who was just passively putting money into a pension each month, without really thinking about what I would do as I approached retirement. Then I stumbled across your channel, and I have now become much more deliberate with my money. I feel like I am getting the hang of the concepts, terminology, and how to apply it. I'm hoping to retire in about 5 year's time, so I've started watching Season 16 of your podcast. Once I have digested that, I will consider whether to invest in the Retirement Planning course (while continuing to enjoy watching your RUclips videos).
Definitely planning, allocating and discipline are key. As one ages, you are hit with a double whammy - Your propensity to cope with losses reduces and yet the size of losses, in absolute terms, will increase due to greater pot size.
This is far more sensible than just moving more capital into bonds which is what most people traditionally advise. However, if interest rates rise and bond yields become more sensible then people could switch back to this more traditional approach as it is very simple.
I really enjoy your vids as you provide such great information on so many financial topics but it is sometimes quite hard to listen due to sibalance in your audio. Just a suggestion, it may be worth looking into getting a de-esser plug-in for whatever video production software you use so it makes for easier listening (1:14 being a prime example). Keep up the great vids!
Still a way off for me but I quite like the approach. It's a bit more complicated also because some investments you can't get at if you are retiring early (like pensions in the UK), and likewise different income has different tax implications, lifetime allowances, etc. But I think dividing your investment pots in the way you suggested makes a lot of sense.
Hi Pete, just wanted to say you have really excellent and uselful content. My dad's coming to retirement soon and we're finding your vidoes a great learning source in guiding him on how to manage his money in retirement. Keep up the great work and Thank you!
This is really thoughtful encouragement to think about what one really wants from savings and investments and how to plan to make best use of money over the longer lifespans we now enjoy. You speak with such passion and care and knowledge Pete in ways that make me feel included and curious to know more and do more for myself. Thanks. Keep up the great work.
Hi Pete, rather than try to guess what you see as the difference between risk and volatility I thought I'd just ask you Unbelievable content as always, thank you
Hmmm. Volatility is the up-and-downiness of an investment. Put more correctly, it’s the extent to which an investment’s performance varies around its mean performance. Volatility is a factor of risk, but they are not the same thing. Risk is multifaceted, and includes inflationary risk, risk of loss, provider risk, counterparty risk, and much more besides. The biggest risk though, is that the investor makes a bad decision about selling at the wrong time, and volatility is a huge factor in this…
Hi Pete, firstly, thanks for your videos. I've always hated finances and did my utmost to avoid dealing with them. When younger, that never used to be a problem because I never had any money. Now I'm 'grown up' (is 55 grown up?), and have a mortgage, car loan, credit cards, two kids, pension, insurance, etc., I need to get a grip on things. I'm following your advice on '10 Steps To Organise Your Financial Life' as a starter, but that has uncovered some worries I'd appreciate your advice on. I've done a lot of research recently (I am a researcher by trade) looking at the financial state of play in world wide economies. My very brief summation is that a) China is completely knackered, b) The USA is not far off and c) the UK is fairly knackered and will probably also suffer a kicking from the other two economies nose-diving. My options are limited as I have no investments, other than my pension (Aegon index tracker). I am also tasked with doing my best to safeguard my Mum's recently acquired investments from when my Dad died last year. These include some bonds and index-tracking investments run via St.James Place. My two main concerns are: a) I feel I should shift at least some of the share-related investment to gold b) I've read SJP (and Aegon, for that matter) aren't doing particularly well at managing people's money. Should I seek an alternative? Appreciate you're likely super busy, but if you get 5 minutes I'd really appreciate your thoughts. Cheers Jeremy
Hi Jeremy A) ‘I feel’ is not a reason to do anything. Ask WHY you want to shift money into gold and question your own motives. Also, stay humble and don’t assume you have any idea what you’re doing. I’m certain that I don’t know what I’m doing so I don’t make bets based on what I feel is going on in the world. B) SJP and AEGON may not be doing great right now. The question is why are they not doing that great? And compared with what? You have to have context. FWIW, I don’t think the world is knackered. I see no reason not to believe that people will keep buying and selling off each other and as long as that’s the case, there’ll be a market, and there will be money to be made for those that stay the course, use pound cost averaging to buy in to markets when they are down, and keep their tinkering to a minimum. HTH - Pete M
When the life expectancy of people is ever increasing, and with more centenarian in the future then today, you have to take as much risk as you can to get to 100+. Not to say be reckless, but to think about what a 40 year retirement looks like.
Wonderful topic! But worthwhile remembering that the ‘layering of risk’ (like the risk ladder you described) is itself very uncertain. There are people like Ray Dallio and Charlie Munger saying the next 10 years may not really provide the same returns on equity investment as the last 10 years have done. How do you hedge for that? I think those of us in our 40s aren’t really going to have the rosy retirement years that the baby boomers are enjoying now. I see many of us working in the gig economy post retirement to keep things afloat.
You may be right about that, Vinay. We'll have to see what the future holds, but I'm convinced that capitalism isn't and won't be broken, so we'll have to have some money invested to take part in that...
Equity investments are unlikely to perform as well in the next 10 years as they have in the last 10 years, simply because the last ten years have been extraordinarily good for equities, but they are still likely to outperform other types of investments over the next 10 years.
Risk appears to be protecting the fund manager/provider from bad headlines ! Can’t complain if they don’t grow but will if there is a crisis and people are exposed in that 65 age range.
Hi Pete What are your thoughts on financial volatility in the markets with the issues in the Ukraine. Im 62 and am looking to purchase a new build property hoping to then re sell it on and make a profit. Do you think this is a wise thing to do in these times?
In this last video you discuss dividing you up your money in retirement and taking a different risk with each quarter over different time periods. We should also be looking at this concerning the value of the inheritance left to our children or charities etc. If you have sufficient retirement funds and expect to leave a reasonable amount as an inheritance then one assumes you should be looking at reducing risk as your age increases. If you are heavy into equities and the markets fall, then it may not bother you but if you died in the next weeks or months then the legacy passed onto your children will be less if the markets have not recovered. Have you done a video on inheritance recently? Are there any moves to make the whole process of passing on an inheritance easier. I have just been reading up on passing on money in access of your normal needs. The rules are not very precise?
Good video, thanks! Was very interesting to hear about the four blocks and how you block client’s money. Would love to know your thoughts more on property as an investment and how that can fit into someone’s retirement plan.
Thanks! I see property as an income generator rather than capital, only because you can’t easily realise cash from a property without selling or borrowing. But it’s a great investment for sure.
How practical is this as we get older? Yes it’s important to pay attention to your budget but some of this shuffling might be a bit much. Are there services that can do this automatically do you? If not, seems like a market opportunity
Can you do a video on how safe my money is in a SIPP pension and the protection that |I will receive if my pension provider (wrapper company went bust)? Thanks.
Long term care is a bit of an elephant in the room! Politics aside would I be reasonable in thinking that there is an element of a target about the new stated upper limit?? I am wondering if I should build up investment in an 80/20 type fund in my isa and the swing back into cash as soon as I need help. To be honest even at 65 I am finding fossicking around for growth tiring and annoying. Great video btw and a lot of food for thought
Hi Jane. It's an elephant that most of us will never need to address. Every household is different of course, and no-one wants to see their estate decimated by care fees, but most of us won't need care and if we do, it'll likely be for less than two years. The last thing I'd want is to not enjoy life in the here and now, just in case I nee care one day.... Glad the video was helpful - thanks for being here!
You should be able to see when any video on RUclips is release, Simi, unless I’m missing something. Really there are no low risk options. Risk is too big a subject to cover in one short video, but you might want to search the channel (or the Five Minute Friday playlist) for some videos on the subject.
How does a dividend fund, say VHYL, fit into the ladder. Whilst the dividends aren't guaranteed, they could provide the full income required in retirement. Should you just try and keep a couple of years of dividends as the cash portion but keep the rest invested?
Great question. I'd probably consider it alongside the ladder. Think of the dividend fund as 'securing' some of your income shortfall (even though it isn't secure, strictly speaking, as you say) then use the ladder to make up the rest of the shortfall if indeed there is one...
@@MeaningfulMoney Thanks, Pete. I was thinking of maybe having it as a pseudo annuity (better yield but more risk). Have just transferred a small portion of ISA as a satellite investment to see how it returns over the next few years compared to other funds.
Very informative but everyday ordinary people haven’t got a clue about risk, bonds and stuff like that ,, bury their head in the sand sometimes and rely on their partners pension ,, like me ,, eeek 🤦🏻♀️ if I could send you an email on the general points you could perhaps use me as a topic for one of your videos ,, best wishes, Lisa
'Everyday people haven't got a clue' - that's why i'm here Lisa! Anyone can learn this stuff and I do try to make it as simple as possible. Commit to educating yourself and it will reap huge benefits for you. I can't however speak to your specific circumstances as to do so would cross the line into advice. As i'm a regulated adviser 9and not just some guy spouting off on RUclips) I could get in trouble for this. I do have a great, 9000-strong community on Facebook though who are super-willing to help each other out. meaningfulmoney.tv/community
It’s a difficult problem for me, I am 66 years old I have full UK Pension, company Pension at 680 pounds/months, revenue from renting one house 680 pounds and 400,000 pounds in SIPP’s and Canada Life small pension 75 pounds/month.. I worry.
Hopefully the strategies here will give you food for thought, Jack. By keeping your near-term money at much less, even zero risk, then you can worry less about the market movements affecting your longer-term money. I do understand the stress factor though - you've worked hard to amass what you have and don't want to see it lost...
@@ratna1984 good question, number 1 the way the UK is going and social care so expensive and if I end up in a care home , how much is that going to cost in later live? I checked out the prices and it’s expensive. With the conservatives in power everything is going private and one day if you don’t have the means you have to die.
@@jackcro8825 Pete briefly mentions this in the video, how people tend to be overly concerned with the cost of 'long term' care. Only 1 in 10 end up there, and the average stay in a UK care home with nursing is 12 months, and 24 months without nursing care. Yes the cost is expensive, but for the majority that expense is not particularly long. By the sounds of it, you have a decent amount of equity in your rental property and a nice SIPP, so unless you have a large ongoing expenses now, you should be in a good position.
@@ratna1984 thank for reply much appreciated for you taking the time. In addition thank you for the information and am completely new to systems and what’s going on.
Let me know how you find these videos - I love hearing from you and try to respond as much as I can!
You might find this interesting too: 🔴 ruclips.net/video/jEbYkc1EwZc/видео.html - Pension Death Benefits
Another excellent video. I'm pleased to say that, having just retired at 62, what I have invested / kept in cash, etc, is pretty much in line with what Pete recommends. Maybe that's just luck, or common sense - but it did take some working out by me, and un-aided too. In fact, I'm so pleased about that, I think I'll treat myself & turn the central heating on. Whoo-hoo!
It IS common sense, Tony - just takes some thinking through, like you say. Maybe push the boat out and heat up enough water for a bath?! 🤣
@@MeaningfulMoney I said "treat myself", Pete, not engage in reckless extravagance!
@@maltesetony9030 ha ha haaaaaa
That was really helpful, particularly the concept of breaking down your needs over specific time periods and allocating risk levels to each one. As I get within a year of taking early retirement I'm finding your channel more and more useful, thank you.
Thanks Pete, I really enjoyed this video. I was someone who was just passively putting money into a pension each month, without really thinking about what I would do as I approached retirement. Then I stumbled across your channel, and I have now become much more deliberate with my money. I feel like I am getting the hang of the concepts, terminology, and how to apply it. I'm hoping to retire in about 5 year's time, so I've started watching Season 16 of your podcast. Once I have digested that, I will consider whether to invest in the Retirement Planning course (while continuing to enjoy watching your RUclips videos).
Really glad to have you here, Liam, and I’m delighted the content is useful! Any questions on the Academy - let me know…
Interesting and straight talking video, not over complicated jargon easy to follow and understand - thanks
Definitely planning, allocating and discipline are key. As one ages, you are hit with a double whammy - Your propensity to cope with losses reduces and yet the size of losses, in absolute terms, will increase due to greater pot size.
Definitely - real people think in monetary amounts, not percentages. And those numbers get bigger as we get older
This is far more sensible than just moving more capital into bonds which is what most people traditionally advise. However, if interest rates rise and bond yields become more sensible then people could switch back to this more traditional approach as it is very simple.
I agree - many ways to skin the same cat, and to do so at different times.
I really enjoy your vids as you provide such great information on so many financial topics but it is sometimes quite hard to listen due to sibalance in your audio. Just a suggestion, it may be worth looking into getting a de-esser plug-in for whatever video production software you use so it makes for easier listening (1:14 being a prime example). Keep up the great vids!
Still a way off for me but I quite like the approach.
It's a bit more complicated also because some investments you can't get at if you are retiring early (like pensions in the UK), and likewise different income has different tax implications, lifetime allowances, etc. But I think dividing your investment pots in the way you suggested makes a lot of sense.
Hi Pete, just wanted to say you have really excellent and uselful content. My dad's coming to retirement soon and we're finding your vidoes a great learning source in guiding him on how to manage his money in retirement. Keep up the great work and Thank you!
Thank you, Hensley. Really glad it is helpful for you. Give your Dad my best! 👍🏻
This is really thoughtful encouragement to think about what one really wants from savings and investments and how to plan to make best use of money over the longer lifespans we now enjoy. You speak with such passion and care and knowledge Pete in ways that make me feel included and curious to know more and do more for myself. Thanks. Keep up the great work.
Thank you, Big Hare - great to have you here!
Excellent video and advice
Fantastic video yet again. This time even more succinct and well explained.
Thanks, @dduplis - glad you enjoyed it!
Hi Pete, rather than try to guess what you see as the difference between risk and volatility I thought I'd just ask you
Unbelievable content as always, thank you
Hmmm. Volatility is the up-and-downiness of an investment. Put more correctly, it’s the extent to which an investment’s performance varies around its mean performance.
Volatility is a factor of risk, but they are not the same thing. Risk is multifaceted, and includes inflationary risk, risk of loss, provider risk, counterparty risk, and much more besides.
The biggest risk though, is that the investor makes a bad decision about selling at the wrong time, and volatility is a huge factor in this…
Hi Pete, firstly, thanks for your videos. I've always hated finances and did my utmost to avoid dealing with them. When younger, that never used to be a problem because I never had any money.
Now I'm 'grown up' (is 55 grown up?), and have a mortgage, car loan, credit cards, two kids, pension, insurance, etc., I need to get a grip on things.
I'm following your advice on '10 Steps To Organise Your Financial Life' as a starter, but that has uncovered some worries I'd appreciate your advice on.
I've done a lot of research recently (I am a researcher by trade) looking at the financial state of play in world wide economies. My very brief summation is that a) China is completely knackered, b) The USA is not far off and c) the UK is fairly knackered and will probably also suffer a kicking from the other two economies nose-diving.
My options are limited as I have no investments, other than my pension (Aegon index tracker). I am also tasked with doing my best to safeguard my Mum's recently acquired investments from when my Dad died last year. These include some bonds and index-tracking investments run via St.James Place.
My two main concerns are:
a) I feel I should shift at least some of the share-related investment to gold
b) I've read SJP (and Aegon, for that matter) aren't doing particularly well at managing people's money. Should I seek an alternative?
Appreciate you're likely super busy, but if you get 5 minutes I'd really appreciate your thoughts.
Cheers
Jeremy
Hi Jeremy
A) ‘I feel’ is not a reason to do anything. Ask WHY you want to shift money into gold and question your own motives. Also, stay humble and don’t assume you have any idea what you’re doing. I’m certain that I don’t know what I’m doing so I don’t make bets based on what I feel is going on in the world.
B) SJP and AEGON may not be doing great right now. The question is why are they not doing that great? And compared with what? You have to have context.
FWIW, I don’t think the world is knackered. I see no reason not to believe that people will keep buying and selling off each other and as long as that’s the case, there’ll be a market, and there will be money to be made for those that stay the course, use pound cost averaging to buy in to markets when they are down, and keep their tinkering to a minimum.
HTH - Pete M
Thank you Pete for the great information. Really enjoy everything you put on RUclips. Much appreciated.
Thank you!
When the life expectancy of people is ever increasing, and with more centenarian in the future then today, you have to take as much risk as you can to get to 100+. Not to say be reckless, but to think about what a 40 year retirement looks like.
Wonderful topic! But worthwhile remembering that the ‘layering of risk’ (like the risk ladder you described) is itself very uncertain. There are people like Ray Dallio and Charlie Munger saying the next 10 years may not really provide the same returns on equity investment as the last 10 years have done. How do you hedge for that?
I think those of us in our 40s aren’t really going to have the rosy retirement years that the baby boomers are enjoying now. I see many of us working in the gig economy post retirement to keep things afloat.
You may be right about that, Vinay. We'll have to see what the future holds, but I'm convinced that capitalism isn't and won't be broken, so we'll have to have some money invested to take part in that...
Equity investments are unlikely to perform as well in the next 10 years as they have in the last 10 years, simply because the last ten years have been extraordinarily good for equities, but they are still likely to outperform other types of investments over the next 10 years.
Risk appears to be protecting the fund manager/provider from bad headlines ! Can’t complain if they don’t grow but will if there is a crisis and people are exposed in that 65 age range.
Hi Pete
What are your thoughts on financial volatility in the markets with the issues in the Ukraine. Im 62 and am looking to purchase a new build property hoping to then re sell it on and make a profit. Do you think this is a wise thing to do in these times?
Great video which has certainly got me thinking about my own circumstances / investments. Thanks.
Cheers Bazwan!
Another great video cheers Pete 😀
The cash flow ladder is a great concept - thanks!
Cheers, Simon!
In this last video you discuss dividing you up your money in retirement and taking a different risk with each quarter over different time periods. We should also be looking at this concerning the value of the inheritance left to our children or charities etc. If you have sufficient retirement funds and expect to leave a reasonable amount as an inheritance then one assumes you should be looking at reducing risk as your age increases. If you are heavy into equities and the markets fall, then it may not bother you but if you died in the next weeks or months then the legacy passed onto your children will be less if the markets have not recovered. Have you done a video on inheritance recently? Are there any moves to make the whole process of passing on an inheritance easier. I have just been reading up on passing on money in access of your normal needs. The rules are not very precise?
Good video, thanks! Was very interesting to hear about the four blocks and how you block client’s money.
Would love to know your thoughts more on property as an investment and how that can fit into someone’s retirement plan.
Thanks! I see property as an income generator rather than capital, only because you can’t easily realise cash from a property without selling or borrowing. But it’s a great investment for sure.
How practical is this as we get older? Yes it’s important to pay attention to your budget but some of this shuffling might be a bit much. Are there services that can do this automatically do you? If not, seems like a market opportunity
Really good video. Hope to retire in 2 years so great advice Thanks
Great video. Succinct, and so easy to understand.
Thank you John!
Can you do a video on how safe my money is in a SIPP pension and the protection that |I will receive if my pension provider (wrapper company went bust)? Thanks.
There is one about FSCS protection and how that applies to funds within wrappers, such as within a SIPP. ruclips.net/video/YcjKlxAYEEE/видео.html
Done: ruclips.net/video/EEHihiSkzcE/видео.html
@@NickMM34 Thanks, I'll check it out
@@MeaningfulMoney Thanks, I'll check it out
Long term care is a bit of an elephant in the room! Politics aside would I be reasonable in thinking that there is an element of a target about the new stated upper limit?? I am wondering if I should build up investment in an 80/20 type fund in my isa and the swing back into cash as soon as I need help. To be honest even at 65 I am finding fossicking around for growth tiring and annoying. Great video btw and a lot of food for thought
Hi Jane. It's an elephant that most of us will never need to address. Every household is different of course, and no-one wants to see their estate decimated by care fees, but most of us won't need care and if we do, it'll likely be for less than two years. The last thing I'd want is to not enjoy life in the here and now, just in case I nee care one day....
Glad the video was helpful - thanks for being here!
Thank you. It would be useful to have a Date Stamp on your Videos! I wonder if you have a video that goes into some LOW RISK options for Investing?
You should be able to see when any video on RUclips is release, Simi, unless I’m missing something.
Really there are no low risk options. Risk is too big a subject to cover in one short video, but you might want to search the channel (or the Five Minute Friday playlist) for some videos on the subject.
@@MeaningfulMoney Thank you! I do see the Date stamps on other You tube videos except these, which I found very strange- hence the comment.
How does a dividend fund, say VHYL, fit into the ladder. Whilst the dividends aren't guaranteed, they could provide the full income required in retirement. Should you just try and keep a couple of years of dividends as the cash portion but keep the rest invested?
Great question. I'd probably consider it alongside the ladder. Think of the dividend fund as 'securing' some of your income shortfall (even though it isn't secure, strictly speaking, as you say) then use the ladder to make up the rest of the shortfall if indeed there is one...
@@MeaningfulMoney Thanks, Pete. I was thinking of maybe having it as a pseudo annuity (better yield but more risk). Have just transferred a small portion of ISA as a satellite investment to see how it returns over the next few years compared to other funds.
Very informative but everyday ordinary people haven’t got a clue about risk, bonds and stuff like that ,, bury their head in the sand sometimes and rely on their partners pension ,, like me ,, eeek 🤦🏻♀️ if I could send you an email on the general points you could perhaps use me as a topic for one of your videos ,, best wishes, Lisa
'Everyday people haven't got a clue' - that's why i'm here Lisa! Anyone can learn this stuff and I do try to make it as simple as possible. Commit to educating yourself and it will reap huge benefits for you.
I can't however speak to your specific circumstances as to do so would cross the line into advice. As i'm a regulated adviser 9and not just some guy spouting off on RUclips) I could get in trouble for this. I do have a great, 9000-strong community on Facebook though who are super-willing to help each other out.
meaningfulmoney.tv/community
It’s a difficult problem for me, I am 66 years old I have full UK Pension, company Pension at 680 pounds/months, revenue from renting one house 680 pounds and 400,000 pounds in SIPP’s and Canada Life small pension 75 pounds/month..
I worry.
Hopefully the strategies here will give you food for thought, Jack. By keeping your near-term money at much less, even zero risk, then you can worry less about the market movements affecting your longer-term money.
I do understand the stress factor though - you've worked hard to amass what you have and don't want to see it lost...
What is the worry? Do you not have enough money to fund your lifestyle?
@@ratna1984 good question, number 1 the way the UK is going and social care so expensive and if I end up in a care home , how much is that going to cost in later live? I checked out the prices and it’s expensive. With the conservatives in power everything is going private and one day if you don’t have the means you have to die.
@@jackcro8825 Pete briefly mentions this in the video, how people tend to be overly concerned with the cost of 'long term' care. Only 1 in 10 end up there, and the average stay in a UK care home with nursing is 12 months, and 24 months without nursing care. Yes the cost is expensive, but for the majority that expense is not particularly long.
By the sounds of it, you have a decent amount of equity in your rental property and a nice SIPP, so unless you have a large ongoing expenses now, you should be in a good position.
@@ratna1984 thank for reply much appreciated for you taking the time.
In addition thank you for the information and am completely new to systems and what’s going on.
I disagree with this. It doesn’t make sense mathematically. Treat all money the same.
First!
Jack, i feel like my career is complete having someone say that on one of my videos! 🤣
@@MeaningfulMoney You’re welcome 😆 I just couldn’t help myself.