I like this. I have a certified CPA do all my taxes every year. This gives me insight into what I need to keep track of throughout the year, and I can often get in a question or two for free since they're reviewing my finances to prepare my taxes anyway. I tell everyone I know not to screw around with turbotax or going to a "tax preparer", CPA is THE way to go. Beyond that I have investments in real estate and in the market, which is a mix of going alone as well as having retirement plans set up through my employer. I decided that if I take something on myself, I also want a managed version of that investment going in the background. This gives me the confidence that even if I fail on my own, I've still got a strong plan to fall back on. I also liked your comment about a trust, I'm looking at setting up a trust within the next couple years.
I got a financial advisor to help me invest a largish sum of money. He advised me to get 6 products, which I did. There was a down turn in the market, the shares went tits up and I lost thousands of pounds. Years later I had a different financial expert advising me on something else. He asked do I want to invest money in shares, I said no and told him my sorry tale. After this he predicted 4 out of 6 of the products I had put money into as advised by the previous financial advisor. I asked how could you possibly know that ? He said, it is easy, those are the products that the financial advisor gets the most kick back from. Moral of the story, in my experience don't trust a financial advisor.
Ouch, that sucks, Steve. Sorry you had a bad experience. There’s been too much of that gone on in the past, no wonder we advisers have a bad name. Obviously we’re not all like that, and lots has happened to clean up the profession, but that doesn’t help you…😞
Hi Pete, Thanks for the helpful content. I spent most of my life with the help of a financial advisor, but it was difficult to find one that was good for me. Although I didn’t always follow the advice at times I was saved from making a poor decision. Unfortunately for me my advisor has retired and I was introduced to a new advisor. I didn’t take to the new advisor and now operate alone. I am 10 years retired and most of my life I have followed my pension funds performance on a weekly basis. I learnt not to get out of a falling market as it’s so difficult to decide when to return because it’s difficult to recognise sustained growth. I would like to find an expert in retirement funds and look forward to viewing your advice on choosing a financial advisor.
Pete, I think your Meaningful Academy is excellent and anyone thinking about seeing a financial adviser or planner would benefit from doing the course before seeing an adviser. (the link is above in the description folks) Do you share my view that most people in their early 30s would benefit from having a few sessions with a good financial planner.
Love your clear and informative videos. A suggestion for a future topic - many people have deferred DB pensions, does it make sense in most cases to take those pensions early (say 55) given they are actuarially reduced, so whilst the pension is lower, it's paid for longer. Obviously the tax angle needs to be considered, but based on my own estimations the break even point for when taking it later results in greater wealth is surprisingly late in retirement.
This is a good shout. It's a long way off for me but my plan is to save money in SIPP/ISA to pay for retirement until DB pension begins at 65/67 - is this actually the right call?
@@0NoQuarter14 I think it's very much based on personal circumstances, and depends a lot on other sources of income / wealth you may have. My wife has an NHS pension she can take at 55 without penalty, so that combined income can really make a difference to us and impact the choices we can make. Also as taking a DB pension doesn't trigger the money purchase annual allowance, it doesn't prevent me continuing to build funds in my current employer's pension all the time I'm working. As my current employers scheme is salary sacrifice I could even use that to reduce the potential total tax impact of the extra income.
Thank you for doing the videos I find them interesting. Please can I ask if you could offer any advice on someone that has to retire due to ill health and what is best to either invest a lump sum from the pension or take a monthly payment as is with no reductions as such. Thank you in advance.
I need a financial adviser, as I'm clueless, and rapidly approaching retirement! What are the pros and cons of using an independent person working on their own, versus a firm that employs a team of advisers?
An independent financial advisor will look at the whole of the market whereas large firms typically use one insurance provider. What they will often do is amalgamate pension funds together into one whole fund within one insurance company, charge a set up fee and then an ongoing adviser charge then they constantly review your funds, this is generally better from independent financial advisors as they have to choose the best option for you and the cheapest generally.
I'm an IFA in training, currently studying towards DipFA. Another prime reason you missed is to get out of Salary Sacrifice schemes. Albeit you need to be Level 6 to do so, but the value in transferring out is immense. A current one we are doing has a CETV of £800k and the scheme was offering 50% survivor benefit and a measly 20k PA. He has no wife so currently his daughters would inherit nothing from his pension however by transferring it out he'll be looking at withdrawing an income of 39k PA and will sustain an average growth of 7-10% annualized to keep up with that and his daughters will be likely to receive the full £800k pension in todays value at his death. I struggle to come up with good reasons to stay in DB schemes
If by Salary Sacrifice schemes you mean DB schemes (they are very different things), then yes, there are some compelling reasons to move out. BUT performance cannot be guaranteed, whereas benefits in the DB scheme can, and for many people, that’s important. For example, we declined to do a DB transfer a few years ago for a couple who were clearly unable to live within their means. If we’d transferred them out, they would have spent the lot and ended up in poverty. So there are lots of things at play other than the death benefits of a SIPP and potential performance. It’s far from a no-brainier for many people. Also the regulator and PI insurers take a very similar view of this type of business these days, so there are very few advisers still doing it, and those that are, are charging massive fees.
I’ve been watching your videos intently as I am slowly approaching retirement. I am homeless after a divorce now living in a campervan. I have a teacher’s pension which pays a fixed sum and a works pension, an occupational scheme, of about £100,000 which I could Flexi drawdown as I would like to take more each month until I am 75 to pay towards a mortgage on a flat. I have spoken with my IFA about Flexi drawdown but he states that it’s near impossible as the regulator FCA are against this because it’s a guaranteed scheme. Is there any way round this.
Very useful video! Do you have any advice on how to find a good financial planner as opposed to a discretionary service? I used some of the websites that you mentioned to search for IFAs but it’s very hard to work out how someone charges and what they actually offer based on profiles / websites.
Recently been watching this and lots of Pete's videos. All very good to watch. Thank you. When a financial advisor say they will manage some of our investments/pensions ... what does that mean. Does that mean we have to give authority/control to the advisor such that they can make update/changes to our investments/pensions without the need for our consent or the advisor would make recommendations to us and then for us to decide whether to go ahead with these or not. To relinquish control of hard earned wealth to someone who we really don't know would be difficult.. Any thoughts ? What if we are not so sure of the recommendation from the advisor ..do we have to go agree ? Of course, it could be advise in our best interest but we just don't understand that is the case.
Hi Pankaj - great question. You need to find out from your adviser the basis in which they work. It’ll either be: Advisory - they make recommendations and advise you, but you have to consent before they can take action. Discretionary - you give them an investment mandate and they can make changes within that mandate without asking you each time. Sounds like you’d be happier with an advisory basis, where you can challenge, ask questions and seek clarification. Good luck - Pete M
No, not really but I’m increasingly moving towards mentoring and overseeing my advisers at Jacksons and not taking many clients on myself. That said, they all think like me! MeaningfulMoney.tv/work-with-pete
Hi James - good to have you here! I think maybe that tag shouldn’t be there as even though I promote my own academy, obviously that’s not paid promotion - will get it fixed, ta!
@@MeaningfulMoney Great content! Maybe we should chat about that next week, I also want to understand where the line is about what I should/should not be marking as promotional!
I would not see myself as wealthy enough to use an FA, so I DIY everything, but I use managed portfolios rather than picking and choosing myself. I did have a free consult with an FA once who was specifically for doctors, but their fees were high, and being only in my 30s plus tons of youtube videos and your podcast, I decided not to go ahead with the FA. If anything I would use an accountant if I ever go self employed or start private work, or a financial coach which seems more affordable
Hey I have recently started investing in Vanguards S&P 500 ETF GBP. How does the ETF track the index? Why does the price change when the S&P index is closed during the UK am?
Hi Pete, do you have any advice for those of us with DB pensions through their employer? I’d like to have more than just my DB pension at retirement and think the LISA suits me best with the 25% bonus + no tax on any income I take from it. I struggle to see the benefit of a pension over a LISA when having a separate DB workplace pension. Any thoughts or advice on this?
Whatever you have agreed with then. There’s no kickback as such these days - that was banned in 2013 - but you may have agreed an ongoing fee with them. Usually between 0.5 and 1% per year
You can manage that yourself pretty easily, if you know the rules and use your platform to keep track of your gains. I did a video on CGT last year. The numbers have changed a little bit but the principles are still the same - just search for it. Good luck!
Hi Pete, I have amassed over the years a reasonable pension pot and would be very keen to transfer the funds and manage/invest the proceeds myself. Is this possible?
Yes, it’s possible. Whether it’s the smart thing to do or not is another question entirely. Please tread carefully, and seek advice in the first instance.
@@MeaningfulMoney Thank you.... So basically I have to take a leap of faith with relinquishing control of my life savings. Scary. Just not sure that they will act fully in MY best interests with regards to maximising my return. As for seeking advice. where do I begin?
Hi Pete, great video, but one question you did not answer. How much can we expect to pay? I know rates will vary between firms but a rough estimate would give us an idea. Cheers John
Thanks! Ultimately, that’s an impossible question to answer as there are too many variables. Depends on the work needed, the size of the case, the location and skill/qualification level of the adviser, the risk to the adviser (depends on the action required) and lots more besides!
Hi Pete, I’m currently 57 and am looking to retire at 60, I have 3 different pensions my question is when would be the best time to approach a financial adviser?
It depends! Here, we will usually analyze your needs and budget and work within your budget and ensure that it’s not putting a stretch to it. From there, we will do reviews with our client and see how we can expand based on their current life stage and financial situation.
Very helpful video!
I like this. I have a certified CPA do all my taxes every year. This gives me insight into what I need to keep track of throughout the year, and I can often get in a question or two for free since they're reviewing my finances to prepare my taxes anyway. I tell everyone I know not to screw around with turbotax or going to a "tax preparer", CPA is THE way to go.
Beyond that I have investments in real estate and in the market, which is a mix of going alone as well as having retirement plans set up through my employer. I decided that if I take something on myself, I also want a managed version of that investment going in the background. This gives me the confidence that even if I fail on my own, I've still got a strong plan to fall back on.
I also liked your comment about a trust, I'm looking at setting up a trust within the next couple years.
I got a financial advisor to help me invest a largish sum of money. He advised me to get 6 products, which I did. There was a down turn in the market, the shares went tits up and I lost thousands of pounds. Years later I had a different financial expert advising me on something else. He asked do I want to invest money in shares, I said no and told him my sorry tale. After this he predicted 4 out of 6 of the products I had put money into as advised by the previous financial advisor. I asked how could you possibly know that ? He said, it is easy, those are the products that the financial advisor gets the most kick back from. Moral of the story, in my experience don't trust a financial advisor.
Ouch, that sucks, Steve. Sorry you had a bad experience. There’s been too much of that gone on in the past, no wonder we advisers have a bad name. Obviously we’re not all like that, and lots has happened to clean up the profession, but that doesn’t help you…😞
Hi Pete, Thanks for the helpful content. I spent most of my life with the help of a financial advisor, but it was difficult to find one that was good for me. Although I didn’t always follow the advice at times I was saved from making a poor decision. Unfortunately for me my advisor has retired and I was introduced to a new advisor. I didn’t take to the new advisor and now operate alone. I am 10 years retired and most of my life I have followed my pension funds performance on a weekly basis. I learnt not to get out of a falling market as it’s so difficult to decide when to return because it’s difficult to recognise sustained growth. I would like to find an expert in retirement funds and look forward to viewing your advice on choosing a financial advisor.
Pete, I think your Meaningful Academy is excellent and anyone thinking about seeing a financial adviser or planner would benefit from doing the course before seeing an adviser. (the link is above in the description folks)
Do you share my view that most people in their early 30s would benefit from having a few sessions with a good financial planner.
Love your clear and informative videos. A suggestion for a future topic - many people have deferred DB pensions, does it make sense in most cases to take those pensions early (say 55) given they are actuarially reduced, so whilst the pension is lower, it's paid for longer. Obviously the tax angle needs to be considered, but based on my own estimations the break even point for when taking it later results in greater wealth is surprisingly late in retirement.
This is a good shout. It's a long way off for me but my plan is to save money in SIPP/ISA to pay for retirement until DB pension begins at 65/67 - is this actually the right call?
@@0NoQuarter14 I think it's very much based on personal circumstances, and depends a lot on other sources of income / wealth you may have. My wife has an NHS pension she can take at 55 without penalty, so that combined income can really make a difference to us and impact the choices we can make. Also as taking a DB pension doesn't trigger the money purchase annual allowance, it doesn't prevent me continuing to build funds in my current employer's pension all the time I'm working. As my current employers scheme is salary sacrifice I could even use that to reduce the potential total tax impact of the extra income.
Thank you for doing the videos I find them interesting. Please can I ask if you could offer any advice on someone that has to retire due to ill health and what is best to either invest a lump sum from the pension or take a monthly payment as is with no reductions as such. Thank you in advance.
I need a financial adviser, as I'm clueless, and rapidly approaching retirement! What are the pros and cons of using an independent person working on their own, versus a firm that employs a team of advisers?
I recommend Pete Matthews.
An independent financial advisor will look at the whole of the market whereas large firms typically use one insurance provider. What they will often do is amalgamate pension funds together into one whole fund within one insurance company, charge a set up fee and then an ongoing adviser charge then they constantly review your funds, this is generally better from independent financial advisors as they have to choose the best option for you and the cheapest generally.
I'm an IFA in training, currently studying towards DipFA. Another prime reason you missed is to get out of Salary Sacrifice schemes. Albeit you need to be Level 6 to do so, but the value in transferring out is immense. A current one we are doing has a CETV of £800k and the scheme was offering 50% survivor benefit and a measly 20k PA. He has no wife so currently his daughters would inherit nothing from his pension however by transferring it out he'll be looking at withdrawing an income of 39k PA and will sustain an average growth of 7-10% annualized to keep up with that and his daughters will be likely to receive the full £800k pension in todays value at his death. I struggle to come up with good reasons to stay in DB schemes
If by Salary Sacrifice schemes you mean DB schemes (they are very different things), then yes, there are some compelling reasons to move out. BUT performance cannot be guaranteed, whereas benefits in the DB scheme can, and for many people, that’s important.
For example, we declined to do a DB transfer a few years ago for a couple who were clearly unable to live within their means. If we’d transferred them out, they would have spent the lot and ended up in poverty. So there are lots of things at play other than the death benefits of a SIPP and potential performance. It’s far from a no-brainier for many people.
Also the regulator and PI insurers take a very similar view of this type of business these days, so there are very few advisers still doing it, and those that are, are charging massive fees.
Makes a lot of sense - for me, how the advisor charges became the deciding factor, a flat % for years and years never felt right.
What do you think of Transferwise launching a product where instead of holding cash you can invest in shares
I’ve been watching your videos intently as I am slowly approaching retirement.
I am homeless after a divorce now living in a campervan. I have a teacher’s pension which pays a fixed sum and a works pension, an occupational scheme, of about £100,000 which I could Flexi drawdown as I would like to take more each month until I am 75 to pay towards a mortgage on a flat.
I have spoken with my IFA about Flexi drawdown but he states that it’s near impossible as the regulator FCA are against this because it’s a guaranteed scheme.
Is there any way round this.
Very useful video! Do you have any advice on how to find a good financial planner as opposed to a discretionary service? I used some of the websites that you mentioned to search for IFAs but it’s very hard to work out how someone charges and what they actually offer based on profiles / websites.
Is there a register where you can find a financial advisor. Avoiding scammers? Best Peter
Yes - just Google the FCA register and you should be able to find your adviser there
Recently been watching this and lots of Pete's videos. All very good to watch. Thank you.
When a financial advisor say they will manage some of our investments/pensions ... what does that mean.
Does that mean we have to give authority/control to the advisor such that they can make update/changes to our investments/pensions without the need for our consent or the advisor would make recommendations to us and then for us to decide whether to go ahead with these or not.
To relinquish control of hard earned wealth to someone who we really don't know would be difficult.. Any thoughts ?
What if we are not so sure of the recommendation from the advisor ..do we have to go agree ? Of course, it could be advise in our best interest but we just don't understand that is the case.
Hi Pankaj - great question.
You need to find out from your adviser the basis in which they work. It’ll either be:
Advisory - they make recommendations and advise you, but you have to consent before they can take action.
Discretionary - you give them an investment mandate and they can make changes within that mandate without asking you each time.
Sounds like you’d be happier with an advisory basis, where you can challenge, ask questions and seek clarification.
Good luck - Pete M
@@MeaningfulMoney Thank you for the super quick response.
Yes, the Advisory approach would best suit me.
Brilliant and very clear advice. Always useful food for thought. Thank you
Thank you Carol! Appreciate the kind words 🙏🏻
Thanks Pete. Do you have a minimum amount of assets that are required before consulting you?
No, not really but I’m increasingly moving towards mentoring and overseeing my advisers at Jacksons and not taking many clients on myself. That said, they all think like me! MeaningfulMoney.tv/work-with-pete
Hi Pete, I noticed the paid promotion tag on this video. What was that relating to?
Hi James - good to have you here! I think maybe that tag shouldn’t be there as even though I promote my own academy, obviously that’s not paid promotion - will get it fixed, ta!
@@MeaningfulMoney Great content! Maybe we should chat about that next week, I also want to understand where the line is about what I should/should not be marking as promotional!
I would not see myself as wealthy enough to use an FA, so I DIY everything, but I use managed portfolios rather than picking and choosing myself. I did have a free consult with an FA once who was specifically for doctors, but their fees were high, and being only in my 30s plus tons of youtube videos and your podcast, I decided not to go ahead with the FA. If anything I would use an accountant if I ever go self employed or start private work, or a financial coach which seems more affordable
Good stuff! Just don’t pay AUM percentage fee that’s a scandalous ripoff .
Hey I have recently started investing in Vanguards S&P 500 ETF GBP. How does the ETF track the index? Why does the price change when the S&P index is closed during the UK am?
Hi Pete, do you have any advice for those of us with DB pensions through their employer? I’d like to have more than just my DB pension at retirement and think the LISA suits me best with the 25% bonus + no tax on any income I take from it. I struggle to see the benefit of a pension over a LISA when having a separate DB workplace pension. Any thoughts or advice on this?
Question - What percentage of any product does the financial advisor get as a kick back typically, from hard earned money invested by a client ?
Whatever you have agreed with then. There’s no kickback as such these days - that was banned in 2013 - but you may have agreed an ongoing fee with them. Usually between 0.5 and 1% per year
Understand the question Steve, we thought the same. But honestly the cost is tiny and we'll worth it.
What about when I cash in allot of shares, to avoid paying too much capital gains tax
You can manage that yourself pretty easily, if you know the rules and use your platform to keep track of your gains. I did a video on CGT last year. The numbers have changed a little bit but the principles are still the same - just search for it. Good luck!
Hi Pete, I have amassed over the years a reasonable pension pot and would be very keen to transfer the funds and manage/invest the proceeds myself. Is this possible?
Yes, it’s possible. Whether it’s the smart thing to do or not is another question entirely. Please tread carefully, and seek advice in the first instance.
@@MeaningfulMoney Thank you.... So basically I have to take a leap of faith with relinquishing control of my life savings. Scary.
Just not sure that they will act fully in MY best interests with regards to maximising my return. As for seeking advice. where do I begin?
Hi Pete, great video, but one question you did not answer. How much can we expect to pay? I know rates will vary between firms but a rough estimate would give us an idea. Cheers John
Thanks! Ultimately, that’s an impossible question to answer as there are too many variables. Depends on the work needed, the size of the case, the location and skill/qualification level of the adviser, the risk to the adviser (depends on the action required) and lots more besides!
I was quoted £2875 the other day
Hi Pete, I’m currently 57 and am looking to retire at 60, I have 3 different pensions my question is when would be the best time to approach a financial adviser?
Any time from now, Neil, I’d say…
How much is the discount for the academy please?
16.5% - the £ amount depends on the phase of the Academy your choose
If you want a normal life, that requires you to work 50 years and retire on half pay, that’s when you need a financial advisor
How do we get an appointment with you Pete?
meaningfulmoney.to/work-with-pete - everything you need to know is there!
Damn, if Tom Cruise was a Financial Advisor... 🤣🤣🤣
Great and very useful video as always 👍🏻 Thanks!
I don’t dye my hair though, right?!
I need a financial advisor but I am not rich and I think they charge a lot !
They do. Are you sure you need one? Keep learning and you can do so much yourself. My book will help - petesbook.com Good luck!
@@MeaningfulMoney oh yes, I'm as thick as two shorts planks when it comes to financial matters lol.
It depends! Here, we will usually analyze your needs and budget and work within your budget and ensure that it’s not putting a stretch to it. From there, we will do reviews with our client and see how we can expand based on their current life stage and financial situation.
When hell freezes over
Fair enough