You are unauthorized to view this page. Username or E-mail Password Remember Me Forgot Password Questions asked: 00:00:00 - Intro 00:01:33 - You just knew somebody would ask this. Is the classic 60/40 portfolio finished for retirees & should we focus more to emerging markets, under valued co’s & in fixed equity- longer rather than shorter duration bonds etc etc. In my view it isn’t finished, just that we need to adjust to lower return expectations in the next decade and adjust our SWR accordingly year by year. 00:04:36 - For those who use Vanguard life strategy say 60:40 equities/bonds for example; presumably they are being rebalanced by Vanguard on a regular basis. Presumably by selling equities and buying cheaper & higher yielding Bonds in the current environment. This is to achieve the promised asset allocation. I do my own equity / bond split with two funds should i then be doing the same at some stage and buying more into bond funds? 00:07:01 - Have not been visiting this group for some time. I am reasonably happy with our financial set up. The recent turmoil in the markets has not bothered us too much but have decided to check if we can protect/improve our situation. Basically I am 72, retired with sufficient income that I have not had to draw down from my SIPP. But with annuity rates climbing maybe I should look at getting quotes. Would probably put proceeds into SS ISA in my wife's name. Is there a web site that you can get quotes from? 00:09:50 - Is there a way for retail/diy investors to buy newly issued gilts to hold to maturity? For an income stream not to trade. I’ve read about the debt management office (DMO ) but it sounds absurdly cumbersome and I also wasn’t sure whether these are really new bonds as iirc it talks about being uncertain of the price until the sale goes through. Is there an alternative method and also, what would be any pros and cons to making such an investment? 00:11:43 - Annuities - article in the FT says that it takes 16-17 years for an index linked one to pay as much as a fixed one (that starts at a higher rate). Wouldn’t this change though in times of high inflation? Also, mention was made of a 3% fee to buy the annuity but this is the first time I’ve heard of that. Is it subsumed within the cost that you see quoted (eg 100k buys you 5k a year) or is it on top? 00:14:10 - Sure there will be lots of bond questions this eve .. however if you are holding bonds and don’t need to sell is the attitude of sitting tight as we would with equitied generally the approach to take and if not what should we be considering please? 00:16:53 - Please talk about the importance of a cashflow ladder, especially in times where the markets are frequently changing. Is there a risk some DB pension schemes could default - and what happens then... Pension Protection Fund? 00:21:00 - What probing questions should we asking our DB pension administrators and trustees about the ability of schemes to meet future liabilities. I am concerned about riskier instruments being used eg LDIs. Are the regulatory bodies helpful in the current situation. 00:22:02 - DB schemes often offer a tax free lump sum on retirement of eg 3x yearly pension. I understand you can scale this up or down for less or more pension but my question is, am I right in thinking this is the only way you will ever get tax free cash out of this sort of pension? So commuting for more income you’d be missing out on some tax efficiency? 00:23:46 - In the detailed reports section on Voyant, there is Liquid Assets. Do you use this when talking to clients and if so how can this be used to help our planning? 00:27:10 - For equity/bond portfolios do you ever use equity risk premium calculations with clients when trying to forecast the returns for global equities above the expected bond returns. Have just read the current KPMG research & they have it at 6% currently, up from 5.5% in Q1 2022. You hear so many discussions with 9% or above returns which surely are not realistic. I think Vanguard recently forecast 4-5% going forward for global equities. What’s your view please. 00:28:54 - If you have a DB pension that covers your basic needs, is there a need for bonds, especially with what has happened to the bond market recently? I will retire next year and was going to put my extra tax free lump sum in a mixture of equities and bonds for my 3 to 5 years part of the ladder but am now wondering if its better just to put it in a high interest savings account (as they are starting to appear again). Many thanks. 00:30:18 - Hi Pete, it’s been reported that Annuity Rates are at a 13 year high since the mini-budget which I’m struggling to get my head around. Could you shed some light on why this might be and also, does this perhaps bring them back into play for consideration as part of a sensible portfolio (given that there are many factors involved of course). 00:33:01 - Hi Pete, I've stumbled across Investment Bonds offered by a well known "more expensive" financial institution. They seem to have a tax free element in their wrapper and provide a tax free 5% income with a small life insurance element. Could you explain how they work as they seem rather complicated (to me anyway). Are they available from a range of providers and are there any situations where they could be used as an advantage over the usual SIPP ISA GIA cash combo. 00:38:13 - I have a DB pension and a DC pot that fall within the same scheme. This gives me options on how to take the benefits. One option is to take a TFLS from the DC pot at the same time as taking the full DB pension. The TFLS would be the equivalent of 25% of the LTA value of the DB pension (ie 25% * 20xDB). I don't know what would happen to the rest of the DC pot - is it likely it could remain uncrystallised? I've asked, but haven't had an answer yet. Alternatively, I could just take the DB pension, and retain the DC pot as uncrystallised funds, and UFPLS from it over time. Any obvious gotchas I should watch out for? 00:41:00 - Picking up on the guardrails question from last month's Q&A and in particular the fact that the accompanying article unequivocally endorsed the notion that a guardrails strategy could help to ensure a financially successful retirement, I had previously read about the following strategy for a portfolio with an 80:20 allocation. Initial withdrawal rate of 5.4%. Increase by inflation each year except when either a) a market drop causes the withdrawal rate to exceed 6.48% in which case cut withdrawal by 10% or b) market gains cause withdrawal rate to fall below 4.32% in which case increase the withdrawal rate by 10%. What's your view on this Pete? 00:45:37 - If you are in a career Average Pension (CARE) which is index linked eg. LGPS/NHS etc., with greater uncertainty over the next decade, would it be prudent to do Additional Pension Contributions (APCs) as a percentage of pay or stick with the conventional 60/40 or other SIPP strategies. N.B. in the LGPS APS scheme, a Lump sum cost of £1,292.00 (before tax relief) per £100 of extra pension. It looks like the payback time in the LGPS APC scheme is C10 years. 00:47:55 - Hi Pete, given all the turbulence in markets - some of it self inflicted by our new PM what are the top 3 questions your clients are asking you and what is your response. Thanks 00:50:43 - Hi Pete, I'm trying to compare Teachers CARE pensions Faster Accrual vs Additional Pension vs SIPP contributions for my wife. Choosing between Faster Accrual and Additional Pension seems quite nuanced, although David Fountain's Youtube video on the subject has helped. Any words to the wise? 00:51:30 - Should I dare create a What If in Voyant with today's SIPP value, ISA value, and interest rate? Or would that be too scary? 00:53:44 - Maisy 00:54:33 - Pete talks about guarding your media intake. Prev LessonNext Lesson