Mapping out retirement feels incredibly perplexing at this point! With SVB, Signature Bank, and now First Republic showing signs reminiscent of the 2008 market crash and a potential recession 2.0, it raises the question: should I continue saving in US dollars or consider investing in stocks? Consequently, I'm left contemplating what 2023 holds for us as investors. Sitting on over $745K in equity from a home sale, I'm uncertain about the next steps forward.
Everyone needs a different stream of income , unfortunately having a job doesn't mean security due to the high rate of tax , one needs to move ahead their expectation, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
I am a big fan of your content Pete! On the topic of platforms, I wish there was more information available about how the different platforms compare when it comes to tax self-assessment. For anyone looking for a platform for a GIA, I think this is an important consideration that seems to gets overlooked. For example, some platforms provide capital gains tax summaries as part of their annual tax information they provide you, and some do not. Some calculate ERI and all of its implications, and some require you to search for the EIR and figure out the implication for yourself. Some even provide tax reports that are arguably wrong (for example ignoring bed and breakfasting rules in their capital gains calculations). This includes some supposedly "do it all for you" high fee platforms, where my guess is a very high proportion of their customers get their tax returns wrong each year without realising it as a consequene. For a novice investor, if you aren't palnning to pay an accountant to do your taxes for you, I think this is a huge deal I think it would be great if platform reviews and discussion of platforms in general includeded this consideration. Selecting a low fee platform if it means you have to pay an accountant to sort out your taxes for you is not necesssarily good value for money.
Love your content Pete, you’re the first finance UA-camr I started watching and who got me into investing and sorting out what my works pension was invested into. For that I can’t thank you enough.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
Agreed, It's essential to diversify your portfolio. While quality stocks are a solid foundation, you should also consider other assets to spread risk. Thankfully, I can attest to the success of this approach aided by professional guidance seeing my portfolio of $330k grow by 15% this year alone... maybe you should do the same.
Can't tell much, I have my portfolio overseen by a California-based wealth advisor 'Nicole Desiree Simon, she has her basic info noticeable on the internet, so it's only right you look her up
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Nicole
I was reading recently that money invested in workplace pensions has made little or no increase in value during the last five years 😮 Also when when Nationwide or Santander suggest investing they both tell you not to expect a return for five or six years. My question of course is where are people putting their money to achieve the kind of reurns you suggest we can assume ? Do you remember endowment mortgages? They didn't work very well as I remember. People should remind themselves about losing invested money.
Hi Pete, I think you suggested this order of priority: Workplace pension, ISA, SIPP? Would SIPP come before ISA if you have pension allowances and a high rate tax payer? Thanks
Brilliantly helpful as always. Personally have chosen to buy ETF's in my Stocks and Shares ISA and just buy funds that track the S&P500, Global Index (appreciate this is currently 70% US) and the FTSE.
Great video thanks Pete! One question I have a company pension with Smart Pension, my contribution is 5% at the moment, if I increased this to 10% for example, which is easy to do through the Smart Pension website, is this the same as salary sacrifice? At what point does increasing your % contributions lead to taxation?
Hi a video on where to put your cash inside a sipp to cover the last few years say 3 years before retirement would be great. Heard about short term government bond funds , and sipp deposit accounts etc but not sure.
Great video, super clear and helpful. I would assume that for additional rate tax payers, rather than Pension (to employer contribution max) -> ISA -> Pension top-up, it would make more sense to focus on pension and utilise ISA when breaking the 60k annual allowance? Emergency fund aside of course.
Great video Pete as ever , especially the comment about small increases every 6 months in pension contribution it makes a massive difference. £50 a month into a pension at 5% pa gross gets just short of £60K over 40 years. This if in a company scheme actually costs you less than half of this due to employers contributions. If you were to increase the savings every 5 years by 25% effect is massive with compounded interest. It is easy to see how big a pot you can generate for effectively a modest saving if within a company scheme. As you point out this is why pension via employer scheme is the 1st savings route
Great video! What about making a video for NHS Staff who want to retire earlier with few real case examples for instance? With millions of people working for the NHS it can be a worthwhile video to have. Especially when people want to retire at 57 years old hence having 11 years gap until pension age which is the same for NHS Pension Age. Thanks!
Thank you, Pete. I really enjoy, and learn a lot from, your videos and podcasts. You explain things wonderfully and bring a lot of enthusiasm to the subject.
Hi Pete, love your content and as mentioned by others, you are the only investment UA-camr i watch and the one that got my head out of the sand , anything other than doing it yourself is just leaving it to chance. Just wanted to ask if I may. Im right at the start, aged 50, what's my first thing to start up, the investing as per this vid or start an ISA first? My apologies as you have probably answered this previously literally a million times!! Thank Pete and thank goodness I found you!!
how do you deal with workplace pensions and reviewing their performance/costs vs other private options? It's very simple to get salary sacrifice for maximum tax benefit which you'd lose (or be more complicated to claim back via SA) and you'd not get the employer contribution if you went private. But can it be practical to move away from a workplace scheme? or leave it on minimums and put your primary investment elsewhere?
Hi Pete Is it worth using pie features to an ISA platform to divide your investments according to age ie one pie called 55+ another pie called 45+ etc. The higher age pies going 100% global equity and the lower age pies including global bonds to dial down risk due to shorter investment horizon. Is this a reasonable strategy? This way, you ‘stay the course’ and only withdraw from a pie once you reach the relevant age?
Hi, not new to the channel but first question 🙋♂️🙏🏻company pension is with L&G do I have to do everything through them? If I want to action some of the things you talk about eg. Switch off life styling or jump out of certain recent government investment defaults then can I instruct them to do this? Cheers Pete. Rob
There will be a bunch of fund choices you can choose from and you can definitely turn off lifestyling. Call the number on your statement. They won’t be able to advise you but can act on your instructions. Good luck!
I am maxed-out on ISA’s and have a few pensions but I don’t do anything with them. Am I understanding correctly, from this video, that I should be working these harder (ie by managing the investments)?
Very good Pete, one of the best to date. Broken down in to usable information. I an loosing my nerve as i am due to retire in a few months. I am looking at a 3 year fixed term income plan (4.4% annual return with L&G). Any thoughts (anybody)?
Go easy on yourself, Clive, and remember that you don’t have to go all-in on one solution - you can mix and match a bit. Maybe look to secure your baseline expenditure needs and then consider a riskier strategy for the balance of your pension fund. Seek advice if you’re not sure…
Clive good luck I’m planning on retiring at 64 next April at the end of the tax year. For two two reasons 1) work is driving me mad 2) one of my DC pots is crystallised so I utilise my tax allowance to access it so reducing tax.I’ve seen some very good annuities offered recently, fixed term with some cash back, fixed term no cash back definitely worth getting some professional advice and remember you don’t have to put all your pot into an annuity plan
That's a great overall video, if I may suggest, adding a 3rd asset class, crypto to your shares and properties approach: putting regularly 2-3% into bitcoin etc
@@MeaningfulMoney Your credit will be trashed anyway if you are have high amounts of debt and the chances are, people in this position cannot pay it off anyway. So yes they trash their credit file but by paying token payments, they can actually get out of debt eventually when the debt collection agency lowers the value of the loan over time. They will be happy to receive a lower one off payment to settle than what you borrowed. Better than any investment on the stock market! People really shouldn't stress out over unsecured debt especially if it is because they may have a low credit score as the worst consequence.
Most lose more than they make when trading. Trading is buying and selling shares for short-term gain. It’s more like betting. Investing is buying and holding for the very long term - decades. Much less risky!
Mapping out retirement feels incredibly perplexing at this point! With SVB, Signature Bank, and now First Republic showing signs reminiscent of the 2008 market crash and a potential recession 2.0, it raises the question: should I continue saving in US dollars or consider investing in stocks? Consequently, I'm left contemplating what 2023 holds for us as investors. Sitting on over $745K in equity from a home sale, I'm uncertain about the next steps forward.
Everyone needs a different stream of income , unfortunately having a job doesn't mean security due to the high rate of tax , one needs to move ahead their expectation, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
I just checked her out and I have sent her an email. I hope she gets back to me soon
You explain things so well for those new to finances, glad I came across your page. Keep it going and thank you
I am a big fan of your content Pete! On the topic of platforms, I wish there was more information available about how the different platforms compare when it comes to tax self-assessment. For anyone looking for a platform for a GIA, I think this is an important consideration that seems to gets overlooked. For example, some platforms provide capital gains tax summaries as part of their annual tax information they provide you, and some do not. Some calculate ERI and all of its implications, and some require you to search for the EIR and figure out the implication for yourself. Some even provide tax reports that are arguably wrong (for example ignoring bed and breakfasting rules in their capital gains calculations). This includes some supposedly "do it all for you" high fee platforms, where my guess is a very high proportion of their customers get their tax returns wrong each year without realising it as a consequene. For a novice investor, if you aren't palnning to pay an accountant to do your taxes for you, I think this is a huge deal I think it would be great if platform reviews and discussion of platforms in general includeded this consideration. Selecting a low fee platform if it means you have to pay an accountant to sort out your taxes for you is not necesssarily good value for money.
That’s a great shout, actually. Need to do some work on that, research for a new video, perhaps…
Love your content Pete, you’re the first finance UA-camr I started watching and who got me into investing and sorting out what my works pension was invested into.
For that I can’t thank you enough.
I love to hear it! Thanks for watching and well done for taking action! 👊🏻👍🏻
Very good delivery Pete. I like your easy to understand language.
Pete, you are the legend ! You are my finance Guru. You are my guiding star ! Thank you ! 🙏
Very kind, thank you!
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
Agreed, It's essential to diversify your portfolio. While quality stocks are a solid foundation, you should also consider other assets to spread risk. Thankfully, I can attest to the success of this approach aided by professional guidance seeing my portfolio of $330k grow by 15% this year alone... maybe you should do the same.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with?
Can't tell much, I have my portfolio overseen by a California-based wealth advisor 'Nicole Desiree Simon, she has her basic info noticeable on the internet, so it's only right you look her up
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Nicole
I was reading recently that money invested in workplace pensions has made little or no increase in value during the last five years 😮
Also when when Nationwide or Santander suggest investing they both tell you not to expect a return for five or six years.
My question of course is where are people putting their money to achieve the kind of reurns you suggest we can assume ?
Do you remember endowment mortgages? They didn't work very well as I remember. People should remind themselves about losing invested money.
Excellent video. Best summary I've seen on UA-cam. And there's an awful lot of "how to invest" videos so that is daying something!
Very kind, thank you! 🙏🏻
Thanks Pete, excellent video and really helpful
I’m glad, thank you!
Hi Pete, I think you suggested this order of priority: Workplace pension, ISA, SIPP? Would SIPP come before ISA if you have pension allowances and a high rate tax payer? Thanks
Yes, essentially
Great video, Pete. This one could help a lot of people.
Cheers, Mike!
Brilliantly helpful as always. Personally have chosen to buy ETF's in my Stocks and Shares ISA and just buy funds that track the S&P500, Global Index (appreciate this is currently 70% US) and the FTSE.
Great video thanks Pete! One question I have a company pension with Smart Pension, my contribution is 5% at the moment, if I increased this to 10% for example, which is easy to do through the Smart Pension website, is this the same as salary sacrifice? At what point does increasing your % contributions lead to taxation?
Hi a video on where to put your cash inside a sipp to cover the last few years say 3 years before retirement would be great. Heard about short term government bond funds , and sipp deposit accounts etc but not sure.
thanks. Please do add a review of charges by different platforms.
Noted, thanks!
Great video, super clear and helpful.
I would assume that for additional rate tax payers, rather than Pension (to employer contribution max) -> ISA -> Pension top-up, it would make more sense to focus on pension and utilise ISA when breaking the 60k annual allowance? Emergency fund aside of course.
Yes indeed.
@@MeaningfulMoney Perfect 👍 Great videos, I suspect I won't be the only one who is benefitting greatly from them.
Great video Pete as ever , especially the comment about small increases every 6 months in pension contribution it makes a massive difference.
£50 a month into a pension at 5% pa gross gets just short of £60K over 40 years. This if in a company scheme actually costs you less than half of this due to employers contributions.
If you were to increase the savings every 5 years by 25% effect is massive with compounded interest. It is easy to see how big a pot you can generate for effectively a modest saving if within a company scheme. As you point out this is why pension via employer scheme is the 1st savings route
Great video! What about making a video for NHS Staff who want to retire earlier with few real case examples for instance? With millions of people working for the NHS it can be a worthwhile video to have. Especially when people want to retire at 57 years old hence having 11 years gap until pension age which is the same for NHS Pension Age. Thanks!
@Ben_Chode_420
or you could book a appointment with Pete and get the bespoke advice that you seek.
Thank you, Pete. I really enjoy, and learn a lot from, your videos and podcasts. You explain things wonderfully and bring a lot of enthusiasm to the subject.
Thank you Andrew - you’re very kind!
@meaningfulMoney - Pete, do you know which platform offers the best rate for cash at present?
Great video Pete
Hi Pete, love your content and as mentioned by others, you are the only investment UA-camr i watch and the one that got my head out of the sand , anything other than doing it yourself is just leaving it to chance.
Just wanted to ask if I may. Im right at the start, aged 50, what's my first thing to start up, the investing as per this vid or start an ISA first? My apologies as you have probably answered this previously literally a million times!!
Thank Pete and thank goodness I found you!!
how do you deal with workplace pensions and reviewing their performance/costs vs other private options? It's very simple to get salary sacrifice for maximum tax benefit which you'd lose (or be more complicated to claim back via SA) and you'd not get the employer contribution if you went private. But can it be practical to move away from a workplace scheme? or leave it on minimums and put your primary investment elsewhere?
Sound advise as usual Pete - good to see you are still sponsored by Crew 😊
I really wish they would!
Great content, as always.
Thank you!
Hi Pete
Is it worth using pie features to an ISA platform to divide your investments according to age ie one pie called 55+ another pie called 45+ etc. The higher age pies going 100% global equity and the lower age pies including global bonds to dial down risk due to shorter investment horizon. Is this a reasonable strategy? This way, you ‘stay the course’ and only withdraw from a pie once you reach the relevant age?
Very well explained
Hi, not new to the channel but first question 🙋♂️🙏🏻company pension is with L&G do I have to do everything through them? If I want to action some of the things you talk about eg. Switch off life styling or jump out of certain recent government investment defaults then can I instruct them to do this? Cheers Pete. Rob
There will be a bunch of fund choices you can choose from and you can definitely turn off lifestyling. Call the number on your statement. They won’t be able to advise you but can act on your instructions. Good luck!
I am maxed-out on ISA’s and have a few pensions but I don’t do anything with them. Am I understanding correctly, from this video, that I should be working these harder (ie by managing the investments)?
You *can* but that doesn’t mean you *should*. Look to reduce your costs where you can and tidy multiple accounts into just one or two.
My issue with pension is , what if i die sooner all these monies ...
Then they can be passed to your family very tax/efficiently. But you’re very likely to survive to enjoy the money yourself.
But what is the best person option for self employed tradesmen who don’t have a workplace pension?
I mentioned that. You’ll need to open your own pension - choose a platform and crack on. Start with 5% of your gross income.
Very good Pete, one of the best to date. Broken down in to usable information. I an loosing my nerve as i am due to retire in a few months. I am looking at a 3 year fixed term income plan (4.4% annual return with L&G). Any thoughts (anybody)?
Go easy on yourself, Clive, and remember that you don’t have to go all-in on one solution - you can mix and match a bit. Maybe look to secure your baseline expenditure needs and then consider a riskier strategy for the balance of your pension fund. Seek advice if you’re not sure…
Clive good luck I’m planning on retiring at 64 next April at the end of the tax year. For two two reasons
1) work is driving me mad
2) one of my DC pots is crystallised so I utilise my tax allowance to access it so reducing tax.I’ve seen some very good annuities offered recently, fixed term with some cash back, fixed term no cash back definitely worth getting some professional advice and remember you don’t have to put all your pot into an annuity plan
That's a great overall video, if I may suggest, adding a 3rd asset class, crypto to your shares and properties approach: putting regularly 2-3% into bitcoin etc
Pay height debt off first.
Don't pay it. Just pay token amounts until the bank or collections agency negotiates a lower amount for you to pay and get out of debt.
And trash your credit record in the process, @1871aaron
@@MeaningfulMoney Your credit will be trashed anyway if you are have high amounts of debt and the chances are, people in this position cannot pay it off anyway. So yes they trash their credit file but by paying token payments, they can actually get out of debt eventually when the debt collection agency lowers the value of the loan over time. They will be happy to receive a lower one off payment to settle than what you borrowed. Better than any investment on the stock market! People really shouldn't stress out over unsecured debt especially if it is because they may have a low credit score as the worst consequence.
How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading
Most lose more than they make when trading. Trading is buying and selling shares for short-term gain. It’s more like betting. Investing is buying and holding for the very long term - decades. Much less risky!
👏🏻👍🏻