In the 1990s I sold pensions on the strenght that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial adviser is crucial for achieving long-term financial stability and freedom.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Angela Lynn Schilling” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
How can I reach out to this coach? because I'm seeking for a more effective investment approach How good is this person at portfolio diversification, particularly with regard to digital assets?
My advisor is ‘’ "Stephanie Kopp Meeks. she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Thanks, no one knows what will happen the day after you retire so I took the 25% tax free, but if I left it in the pension and something happens yes my spouse gets half but the rest is taken by the scheme. I had two colleagues that took took the whole pot out ,if something happens to them at least the family keep the whole amount BUT they need to manage the pot.
@@ianjames3078 I presume they did a transfer to a DC scheme, it was a popular (but not recommended) thing a few years back but a lot of people were missold it.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@julie-e3t However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
My DB scheme pays out a lump sum or you can take a higher lump sum and a reduced monthly pension. We worked it out that with the higher lump sum you'd have to live beyond 87 before you started to lose out.
If I took any tax free cash from my UK DB pensions, the Canadian government would tax me on it so then it is no longer be tax free. That's the problem with working and living overseas.
I'm 60 and expect to work to the Sate pension age (67 by then). I took the 25% of my existing DC fund at 55 which crystalised my existing fund. I thought that was the end of being able to utilise the tax free drawdown. Subsequent to that I have built up a separate employer DC fund which I now realise I can also do a 25% tax free drawdown. Apparently I can do this until the cumulative amount is £268k. I'm considering increasing my salary sacrifice so it takes me out of the higher income tax rate. Then making periodic tax free draw downs from uncrystalised funds. I know there are recycling rules so you cant just stick the draw down back into the pension and get 40% relief, but if my accelerated contributions come from earnings, is that viable?
Take it from you DB scheme, for me I need to live 16+ years to gain in extra income V taking the money on retirement. The lump sum can be invested or saved and used as emergency funds as and when required. With DC schemes you can access it slowly via UFPLS drawdown or in stages and crystallising part of your pot. It enables you to have cash without paying interest in loans etc
@@ianjames3078 you are limited in the UK in how much you can invest into pensions and get tax relief once you are receiving funds such as lump sums from other pots. The taxman looks out for this and pension providers have to report to the tax man monies they are claiming tax relief on.
very well explained. One point I would note is that Dianne talks as though the listener is a man and for example listener leaves pension "to your wife" when you die. Although more likely, this is not always the case...
Thanks for your comment. You're absolutely right. I wish there was more gender balance in my viewers such that more women were interested in personal finance and pensions in particular. My YT analytics tell me that my viewers are 98% male (!). And the vast majority of my coaching clients have also been men.
Hi Dianne, the information you provide is very informative, thank you, however, this is not a criticism, by the way, could you slow down a bit when you speak. I find it difficult to follow people that speak fast. I understand that it’s a lot of information to impart in a specific time slot, but it would help. Thank you…..
Everyone should already have the mortgage paid off before they get anywhere near retirement But no cos people remortgage for a new kitchen. Remortgage for new windows , remortgage for new bathroom trying to impress folk and keeping up with the Jones 🙈🙈🙈🙈
Or you have done some wealth sharing and had to get on the property ladder again after your divorce. I did and so have quite a few mates, once the kids leave things often go pear shaped.
Judgmental much! How long does it actually take to get onto the stupid housing ladder these days with the ridiculous house prices in the uk and the low wages? You then start a family later…….and when your kids go to Uni the government expects the parents to cough up £5000+ a year to help support them. 30 year mortgages are the norm now and starting later…….all you need is one re-mortgage to get a bigger place and you’d be 70 before it ended. These are not the 70s/80s.
Hi great advise thank you & can I ask I have a medium size DB pension and I haven't touched it yet as I don't need it if I was to pass away suddenly can my pension get passed to my children ?
No DB is different. You may get a choice of a max tfc or reduced one that increases you annual pension. It isn't your money it is a benefit your employer is giving you.
Hi, I’m new to your channel ! I am confused with time allowance. Is it the one can withdraw £5k pa tax free, in addition to PA of £12,570 and PSA of 1,000, when reached the age of 75? I may be wrong, plz educate me🙏🏽
Hi, do you mean the life time allowance? This was the maximum amount that could have across all your pension funds (just over £1.1m). It was abolished earlier this year but the Labour Party have said they will reinstate it if they get into power. Hope that answers your question.
@@DianneSullivan How did the LTA work though, you can't stop funds accumulating and these days it is easy to exceed that amount (which doesn't give a big annual pension anyway). Was it just a limit that stopped you getting tax reclamation for contributions?
Only if there are no beneficiaries / family to pass money down to. DC funds it’s your pot of money not tied into your company or the pension provider. Via beneficiaries form you can decide who gets your money on your death, DB can offer something similar ref a lump sum payment upon your death depending when you die and if already taking your pension your spouse can get a half pension for their life
The Government has much to answer for not setting the economy on a path for regeneration & growth. They are totally accountable, so just remember this at Election time. They set the tone for life, the economy & services, etc.
Does anyone know about pensions. There is so much contradiction about what is the right way to deal with pension choices. None of you are remotely helpful. Just confusing. Please, please stop.
Yep. Nobody knows about pensions. Nobody knows about finance. There's a world of guessers out there. Finance is all smoke, mirrors and lies (mostly lies) controlled by relatively few. There are those that try to assist and I guess Dianne Sullivan is one of those rare ones. Generally don't believe ANYTHING to do with finance (unless it's in your back pocket).
In the 1990s I sold pensions on the strenght that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial adviser is crucial for achieving long-term financial stability and freedom.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Angela Lynn Schilling” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
I just took mine, primary/only reason was I didn't trust next government not to change the rules.
That's my concern.
We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
How can I reach out to this coach? because I'm seeking for a more effective investment approach How good is this person at portfolio diversification, particularly with regard to digital assets?
My advisor is ‘’ "Stephanie Kopp Meeks. she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing...........
Thanks, no one knows what will happen the day after you retire so I took the 25% tax free, but if I left it in the pension and something happens yes my spouse gets half but the rest is taken by the scheme.
I had two colleagues that took took the whole pot out ,if something happens to them at least the family keep the whole amount BUT they need to manage the pot.
Explain ‘whole pot’? Have they paid tax on the full pension value?
@@ianjames3078 I presume they did a transfer to a DC scheme, it was a popular (but not recommended) thing a few years back but a lot of people were missold it.
Please can you repeat this subject with more focus on the point you made about moving funds from a Sipp into an isa . Thanks
Excellently delivered complex information which was clearly explained depending on your own personal circumstances, thank you!
Very good speaker and presenter, thank you.
How kind of you to say this. Thank you.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@julie-e3t However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@David-n8o Oh please I’d love that. Thanks!
@@julie-e3t Clementina Abate Russo is her name
Lookup with her name on the webpage.
My DB scheme pays out a lump sum or you can take a higher lump sum and a reduced monthly pension. We worked it out that with the higher lump sum you'd have to live beyond 87 before you started to lose out.
Another reason is if you move abroad in retirement the new country might tax the tax free cash as income, so maybe best to take before leaving.
Another good reason! Thanks
Not there yet but what a dilemma....
If I took any tax free cash from my UK DB pensions, the Canadian government would tax me on it so then it is no longer be tax free. That's the problem with working and living overseas.
Very unlikely an annuity will be higher than a DB pension. Especially one with inflation proofing built in.
I'm 60 and expect to work to the Sate pension age (67 by then). I took the 25% of my existing DC fund at 55 which crystalised my existing fund. I thought that was the end of being able to utilise the tax free drawdown. Subsequent to that I have built up a separate employer DC fund which I now realise I can also do a 25% tax free drawdown. Apparently I can do this until the cumulative amount is £268k. I'm considering increasing my salary sacrifice so it takes me out of the higher income tax rate. Then making periodic tax free draw downs from uncrystalised funds. I know there are recycling rules so you cant just stick the draw down back into the pension and get 40% relief, but if my accelerated contributions come from earnings, is that viable?
Take it from you DB scheme, for me I need to live 16+ years to gain in extra income V taking the money on retirement. The lump sum can be invested or saved and used as emergency funds as and when required. With DC schemes you can access it slowly via UFPLS drawdown or in stages and crystallising part of your pot. It enables you to have cash without paying interest in loans etc
Just recycle the lump sum back into a SIPP…….there are ways and means
@@ianjames3078 you are limited in the UK in how much you can invest into pensions and get tax relief once you are receiving funds such as lump sums from other pots. The taxman looks out for this and pension providers have to report to the tax man monies they are claiming tax relief on.
@@ianjames3078once you have entered drawdown you are limited to what you can reinvest in a pension.
very well explained. One point I would note is that Dianne talks as though the listener is a man and for example listener leaves pension "to your wife" when you die. Although more likely, this is not always the case...
Thanks for your comment. You're absolutely right. I wish there was more gender balance in my viewers such that more women were interested in personal finance and pensions in particular. My YT analytics tell me that my viewers are 98% male (!). And the vast majority of my coaching clients have also been men.
@@DianneSullivan98% male? Wow, says a male.
Very helpful thanks
Glad it helped
Reason number 6 - you’re about to retire abroad where there is no 25% tax free amount, and your whole pension will be taxed (eg Spain or Portugal)
Hi Dianne, the information you provide is very informative, thank you, however, this is not a criticism, by the way, could you slow down a bit when you speak. I find it difficult to follow people that speak fast. I understand that it’s a lot of information to impart in a specific time slot, but it would help. Thank you…..
Yo can slow the video down .
take tax free cash from DB scheme, pay into SIPP for 25% tax boost, use the new 125% amount to buy annuity. Is that feasible?
What’s a DB pension , I’m a mere mortal that just pays for them while my pension is crap .
Very helpful 🎉
I’m really pleased to hear that you found this helpful. Thank you
annuity = Dick Turpin on your pension
Yes…I wouldn’t touch with a barge pole,😅
Everyone should already have the mortgage paid off before they get anywhere near retirement
But no cos people remortgage for a new kitchen. Remortgage for new windows , remortgage for new bathroom trying to impress folk and keeping up with the Jones 🙈🙈🙈🙈
Or you have done some wealth sharing and had to get on the property ladder again after your divorce. I did and so have quite a few mates, once the kids leave things often go pear shaped.
I've seen this happen to work mates.
Judgmental much! How long does it actually take to get onto the stupid housing ladder these days with the ridiculous house prices in the uk and the low wages? You then start a family later…….and when your kids go to Uni the government expects the parents to cough up £5000+ a year to help support them. 30 year mortgages are the norm now and starting later…….all you need is one re-mortgage to get a bigger place and you’d be 70 before it ended. These are not the 70s/80s.
hello Dianne i would like to take all my tax can you help me with that please
Hi great advise thank you & can I ask I have a medium size DB pension and I haven't touched it yet as I don't need it if I was to pass away suddenly can my pension get passed to my children ?
Most DB pensions pay 50% to the spouse or civil partner but nothing to children!
Defer at your risk!
You don't have to take all of the 25% tax free lump sum in one go.
If you have a DB pension of £10,000 per year. If you do not take your 25% tax free lump sum, then when you receive this pension is 25% of it tax free?
No DB is different. You may get a choice of a max tfc or reduced one that increases you annual pension. It isn't your money it is a benefit your employer is giving you.
Hi, I’m new to your channel ! I am confused with time allowance. Is it the one can withdraw £5k pa tax free, in addition to PA of £12,570 and PSA of 1,000, when reached the age of 75? I may be wrong, plz educate me🙏🏽
Hi, do you mean the life time allowance? This was the maximum amount that could have across all your pension funds (just over £1.1m). It was abolished earlier this year but the Labour Party have said they will reinstate it if they get into power. Hope that answers your question.
@@DianneSullivan How did the LTA work though, you can't stop funds accumulating and these days it is easy to exceed that amount (which doesn't give a big annual pension anyway). Was it just a limit that stopped you getting tax reclamation for contributions?
Only 18.5% of people make it to 65 or an average of 1 in 5 pension companies arent taxed for the 81.5% they get to keep...
You saying 82 percent of people die before they 65 ??
Only if there are no beneficiaries / family to pass money down to. DC funds it’s your pot of money not tied into your company or the pension provider. Via beneficiaries form you can decide who gets your money on your death, DB can offer something similar ref a lump sum payment upon your death depending when you die and if already taking your pension your spouse can get a half pension for their life
The Government has much to answer for not setting the economy on a path for regeneration & growth. They are totally accountable, so just remember this at Election time. They set the tone for life, the economy & services, etc.
They are ultimately responsible for everything. They set the Laws and Regulations we have to live by.
Does anyone know about pensions. There is so much contradiction about what is the right way to deal with pension choices. None of you are remotely helpful. Just confusing. Please, please stop.
Yep. Nobody knows about pensions. Nobody knows about finance. There's a world of guessers out there. Finance is all smoke, mirrors and lies (mostly lies) controlled by relatively few. There are those that try to assist and I guess Dianne Sullivan is one of those rare ones. Generally don't believe ANYTHING to do with finance (unless it's in your back pocket).