Today I am looking at The Good Retirement Guide, an annual guide published by Kogan Page. I bought the current 2021 edition, which was published last month.
The Good Retirement Guide 2021 is 318 pages long. The text is fairly dense but broken up by plenty of headings and bullet-point lists. There are 14 chapters and an alphabetical index at the back. The chapter titles are as follows:
Are You Looking Forward to Retirement?
Money and Budgeting
Pensions
Tax
Investment
Your Home
Leisure Activities
Starting Your Own Business
Looking for Paid Work
Voluntary Work
Health
Holidays
Caring for Elderly Parents
No-one is Immortal
The chapter titles are pretty self-explanatory. The book attempts to cover every aspect of making the most of your senior years. The style is clear and readable, and additional resources are signposted as appropriate.
In contrast with Sod 60! which I also reviewed recently, The Good Retirement Guide covers the financial aspects of later life in some detail. I thought the information about pensions and benefits in particular was very good and tells you most of what you need to know.
Some of the other chapters are a bit less comprehensive. The one on leisure activities, for example, lists various things you might like to do – or take up – in retirement, but the information is frequently sketchy and can verge on stating the obvious. Here is what it has to say about poetry, for example:
There is an increasing enthusiasm for poetry and poetry readings in clubs, pubs and other places of entertainment. Special local events may be advertised in your neighbourhood.
And apart from a mention for the Poetry Society and a link to their website, that is all you get on this subject 🙂
I don’t want to appear too harsh. Obviously in a wide-ranging book like this, it can be hard to judge the degree of detail appropriate to any particular topic. At least by mentioning a wide range of possibilities, the book may give you some ideas about activities you might like to pursue further in retirement.
The health-related content is a bit of a mixed bag. Some subjects are covered in reasonable depth, others less so. There is just half a page devoted to keeping fit, for example, with a further couple of paragraphs about yoga and Pilates. On the other hand, there is some good information (and advice) on health insurance, long-term care plans, and so forth. Again, this illustrates that the book’s primary focus is on the financial aspects of retirement.
One thing that did surprise me is that although this 2021 edition of The Good Retirement Guide was only published last month, there is no mention of the pandemic in it. You will search in vain for Coronavirus or Covid-19 in the index. I know there can be long lead times in publishing, but in an annual guide you might think they could have inserted a section about it somewhere. Maybe we will have to wait for the 2022 version?
Even so, a lot of the subjects discussed in the guide – holidays, for example – have been seriously impacted by the pandemic. The advice and procedures for travel abroad in particular may be very different even after the pandemic is officially over.
Final Thoughts
Overall, I thought The Good Retirement Guide 2021 was a helpful book for people approaching retirement. As I’ve said above, it has a strong emphasis on financial matters, and is well worth reading for that alone. Some of the other content is a bit hit-and-miss, and the surprising lack of any mention of the pandemic means that at times it reads like a guide to an alternate world where Covid never happened. Of course, none of us really knows what the ‘new normal’ will be in future. We can but hope it will be not too far removed from the old normal we remember and which this book – despite the 2021 in its title – basically depicts.
As always, if you have any thoughts or questions about this post, please do leave them below.
Disclosure: As with many posts on Pounds and Sense, this post includes affiliate links. If you click through and make a purchase, I may receive a modest commission for introducing you. This will not affect in any way the price you pay or the product or service you receive.
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As you may know, this is a best-selling book by Claire Parker and Sir Muir Gray, published by Bloomsbury. I bought a hardback copy from Amazon. A slightly cheaper ebook version for Kindle is also available.
Sir Muir Gray is also the author of Sod 70!, a similar healthy living guide aimed at the over-70s.
Review
Sod 60! is 232 pages long. The text – which is very readable – is broken up by lots of sub-headings, diagrams and cartoon-style illustrations (by David Mostyn). There are nine main chapters, each covering an aspect of how to live well in your sixties. The chapter titles are as follows:
Getting Older Doesn’t Matter – Getting Active and Getting Attitude Does
Keeping Active is Fitness Friendly
Your Attitude and Its Soulmates: Mind and Mood
Keeping Your Metabolism Healthy
Take Care of Your…Bits
Rhythm and Blues
Stuff Happens
Decisions, Decisions
Health Care: Choosing and Using It Wisely
Some of those chapter titles are self-explanatory, others less so. For example, Chapter 5 ‘Take Care of Your…Bits’ isn’t about what you might think. It actually covers looking after different parts of your body, from your brain to your feet. Sexual health is then covered in Chapter 6, ‘Rhythm and Blues’. Those both seem pretty odd choices of chapter title to me, but I suppose the aim was to help give the book a ‘quirky’ personality.
That small criticism aside, the style of the book is friendly and relatable. It’s also down to earth and practical, and I like the way that the text is interspersed with exercises, resolutions, and so on. It is very much a hands-on, practical guide.
Sod 60! concerns the importance of looking after your body and mind as you grow older. The authors stress the need to stay as active as you can, both physically and mentally.
Chapter 2 includes a range of physical exercises to try, and also sets out some general principles for exercising healthily as you get older. I thought this was one of the most useful chapters in the book.
Chapter 3, which focuses on attitude, mind and mood, is also very good. It looks at the importance of keeping a positive attitude, and staying connected with friends and family, your neighbours, local community, and so on. It also discusses maintaining a good relationship with your partner (assuming you have one). Getting enough sleep and dealing with stress are covered as well, though not in great detail.
Chapter 4 ‘Keeping your Metabolism Healthy’ focuses on diet and weight. The authors advocate following a balanced and varied Mediterranean-style diet, with plenty of fresh fruit and vegetables. That seems eminently sensible to me. I wouldn’t say there was much in this chapter I hadn’t heard before, and some of the advice such as avoiding sugary drinks struck me as stating the obvious. But this is of course very important to long-term health, so I guess it had to be said.
Chapter 5, as I’ve already mentioned, focuses on different organs/parts of the body. It discusses how to keep each one healthy, and warning signs to look out for as you get older. It also covers age-related changes and what you may be able to do to help prevent problems. Having a good diet, staying active, giving up smoking and reducing alcohol intake all crop up quite frequently. Again, there were no huge surprises for me here.
Chapter 6 is about sexual health and related matters such as bladder and (for men) prostate problems. On the sexual side, the advice could be broadly summed up in five words: Use it or lose it! The advice on matters such as urinary incontinence is – to be honest – a bit depressing, but nonetheless important to be aware of.
Chapter 7 ‘Stuff Happens’ is also a bit depressing, though again it covers some important topics. These include how to deal with the problems later life can throw at you, including depression, isolation, bereavement, serious illness, and so on. There is some excellent advice here, especially on the importance of cultivating and maintaining a support network of friends, relatives, health professionals, and so on.
Finally, Chapters 8 and 9 are both about healthcare and could easily have been combined in my opinion. They look at such matters as how to navigate healthcare decisions, self-care to prevent (or at least mitigate) serious health problems, drugs and vaccinations, and so forth.
In Conclusion
Overall I thought Sod 60! was a useful guide for sixty-somethings though maybe not an earth-shattering one. The book covers a range of issues that anyone in their sixties will need to think about and prepare for. It was first published in 2016, so there is no reference to the Coronavirus pandemic. The advice in the book still applies and in some ways is even more cogent now. With the UK still in lockdown at the time of writing, for example, we all need our support networks more than ever at the moment…
Sod 60! is really a ‘mind and body’ book. It doesn’t cover financial issues such as pensions and benefits (and indeed doesn’t claim to). And it doesn’t have much to say about the challenges and opportunities retirement can bring, or the pros and cons of carrying on working. For advice on these and similar matters, something like the annual Good Retirement Guide (which I hope to review soon) would be good. And keep on reading Pounds and Sense, of course!
If you want a readable and entertaining guide to making the most of your sixties and preserving your physical and mental health, though, Sod 60! would certainly fit the bill. It would also make a great (and relatively inexpensive) birthday or Christmas gift for anyone in this age category.
As ever, if you have any comments or questions about this post, please do leave them below.
Disclosure: As with many posts on Pounds and Sense, this post includes affiliate links. If you click through and make a purchase, I may receive a modest commission for introducing you. This will not affect in any way the price you pay or the product or service you receive.
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A great number of people today need to transfer currencies, or receive transfers from abroad, for many different reasons. As globalization extends, this need has become more frequent as geographical borders become less relevant.
For example, our parents couldn’t even dream about services like eBay or Alibaba, where you can buy anything and have it delivered from a dozen countries away. And the whole thing might be cheaper than buying it in your local store!
But here is where the matter of foreign currency transfers becomes important. Paying for something abroad or getting money sent to you might not be cheap. That’s because not only do you have to pay bank fees for the transaction, you also lose money on currency exchange, which is often a mandatory step in cross-border transfers.
Luckily, today there are alternative money transfer services that allow you to cut these costs. You’ll need to look into them if you require regular foreign currency exchange (FX or forex) services.
Why You Might Need to Make Foreign Currency Transfers
One reason you might need to make a large money transfer abroad is real estate. Buying property is an important part of the retirement planning process and many Britons choose to retire abroad. For example, the latest data indicates that there are about 466,000 British pensioners living in the EU. There are even more among the 5.5 million Brits living worldwide.
Even if you don’t plan on moving or buying a vacation home on some tropical beach, you might consider investing. Investing in real estate is one of the less risky methods for growing your fortune. Of course, the coronavirus crisis has heavily affected this industry. But there are still some very promising prospects for the residential housing market.
Also, today you’ll need to make international payments when booking your holiday accommodation. So, if you plan to travel at all, you’ll need to look for cheap money transfer solutions.
Anyone involved in international business also needs to make and/or accept international payments. This also includes the simple process of buying goods through one of the many e-commerce platforms.
In addition to those reasons, if you are an expat or a traveller, you’ll need to exchange money regularly. The same goes for dealing with transfers like inheritance or even accepting dividend payments from your investments.
All in all, living in the modern world makes you exposed to foreign currency exchange and transfers in many ways. Therefore, the knowledge of how to save money on these transactions is sure to be useful.
How Much Do Foreign Currency Transfers Cost in a Bank?
The cost of an international bank wire transfer is a very complicated issue. First of all, you need to understand that banks will advertise, and sometimes even show you, only the transfer fee. In the UK those range from £8 to about £40. That doesn’t seem too bad, especially for large transfers, right?
However, the truth is that banks are deceiving customers most of the time. If they were fully transparent, you would understand that what truly matters is the FX rate margin. That’s the amount that the bank charges per currency conversion on top of the mid-market exchange rate.
Simply put, high FX margins are why you lose so much money on currency conversions. Different banks use different margins and that’s why they offer different exchange rates. But if you compare the options offered by top UK banks, you’ll see that they are all very close.
Therefore, you don’t have much of a choice.
Also, there might be additional fees involved in a cross-border money transfer. The recipient bank might charge its own fees. If there are any intermediary ‘stops’ along the way, more fees will come.
All things considered, the real cost of an international money transfer can go up to 3-10% of the transfer amount. This cost will be higher for exotic currencies and transfers to remote locations. It will go down a bit for large transfers because banks might offer better terms to VIP clients.
However, the total will always be quite high.
Leading Money Transfer Service Alternatives From the UK
With bank transfer costs so high, a necessity for an alternative emerged. The solution came in the form of FX brokers and money-transfer companies. These businesses offer services similar to banks, but they have much lower overhead costs. Therefore, they are able to keep both the margins and fees very low.
In fact, many companies charge no transfer fees at all for the majority of transactions. However, they use different margins that often depend on the transfer size. Thus, you should always compare foreign currency transfers before choosing a service. This won’t be difficult as all top companies in the industry offer free quotes. They also have transparent pricing schemes.
On average, a transfer with one of these companies will cost you 1-3% of the total. Industry leaders even offer options that allow you to cut costs below 1% for large transfers.
The most notable UK-based FX companies today are TransferWise and WorldFirst. There are other notable businesses as well. However, they cannot compete with these two giants that have multi-million funding.
TransferWise
TransferWise launched not even a decade ago and it has already become a major disruptor in the banking industry. It took over the FX money transfer industry rather fast as well. The main selling point of this company was offering not merely cheap transfers but also a fixed margin scheme.
This means that TransferWise managed to offer its customers consistency and a chance to save a great deal of money. Because of the fixed margins, its services were the most affordable in the industry. The company is now valued at over $3.5 billion and it’s expanded to many countries, including the US.
WorldFirst
WorldFirst is another veteran in the FX transfer industry. This company built a solid reputation for its reliability and trustworthiness. Launched back in 2004 literally from a basement, WorldFirst became one of the industry leaders within a few years.
In 2019 this fintech business was purchased by Ant Financial of the Alibaba Group. This allowed WorldFirst to launch a major change in pricing. It had already been one of the top companies, but it could not compete with TransferWise in affordability. However, the new pricing scheme with fixed margins that go below 0.55% makes WorldFirst a cheaper alternative even to TransferWise. At the moment, there is no cheaper option for foreign currency transfers in the UK. Also, WorldFirst has a very wide reach due to its association with Alibaba, though it’s not yet available in the US.
In Conclusion: Do Your Research for Saving Money on Foreign Currency Transfers
FX money transfer companies today offer great opportunities for money saving. However, do not forget that the lowest cost doesn’t necessarily mean the best offer. These companies have a number of requirements and additional services that you should research. For example, some have a minimum transfer limit. Others offer FX hedging tools that will be essential for reducing risks for businesses and investors.
Thus, be sure to compare all options you have available and research them thoroughly. Watch out for scammers, and choose only those businesses that have a good standing in the industry.
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As you may have heard, the BBC has now confirmed that from 1st August 2020 people over 75 in the UK will lose their automatic right to a free TV licence and have to pay the same ÂŁ157.50 a year as everyone else. This was originally due to happen in June 2020, but it was postponed due to the coronavirus pandemic.
For many old people, TV is their main (or only) source of company. Suddenly having to find this quite large sum out of (in many cases) a very limited income may cause them financial difficulties or downright hardship. Some may even have to choose between watching television and paying their heating bills.
This parlous situation has arisen because the BBC say they have to make economies, and continuing to subsidise free licences for the elderly would force them to cut back drastically in other areas. Meanwhile the government, despite their pre-election promises, has shown no sign of stepping in to preserve free TV licences for over 75s (which they could perfectly well do). Although charities such as Age UK have been raising petitions and applying as much pressure as they can, it now seems certain that this change is going to happen.
So what can people in this situation – or their relatives/friends/carers – do? The BBC have allowed just one concession – the poorest over-75s can continue to receive a free TV licence if they claim and receive pension credit. So let’s look at this in a bit more detail…
Pension Credit
Pension credit is a state benefit for people above retirement age who are on a low income. It can be paid to single people or to couples. It is usually paid weekly, though you can also choose to have it paid fortnightly or monthly.
Along with attendance allowance – which I discussed in this recent post – pension credit is one of the most under-claimed benefits. According to the Department for Work and Pensions, around 40 percent of eligible people, or two in five, fail to claim it. That’s an estimated 1.5 million eligible households in the UK who are missing out.
Pension credit actually comes in two parts – guarantee credit and savings credit. Guarantee credit boosts your weekly income to ÂŁ167.25 if you’re single or ÂŁ255.25 if you’re a couple (all figures correct as of March 2020). You may be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home). If you have under ÂŁ10,000 in savings and investments this will not be taken into consideration. If you have over ÂŁ10,000, it will be assumed that you earn ÂŁ1 a week per ÂŁ500 of savings and investments (equivalent to an interest rate of 10.4% – if only!). This will be added to your total income when working out your eligibility.
Savings credit is meant to be a reward for those who have saved for their retirement. It’s worth up to ÂŁ13.73 a week for a single person or ÂŁ15.35 for couples. To qualify, you must have a minimum income of ÂŁ144.38 a week if you’re single, and ÂŁ229.67 a week if you’re in a couple. For every ÂŁ1 by which your income exceeds this amount, you get 60p of savings credit – up to the ÂŁ13.73/ÂŁ15.35 maximum. If your income is less than the ÂŁ144.38/ÂŁ229.67 savings credit threshold, you won’t qualify. Savings Credit is only available to people who reached state pension age before 6 April 2016. Couples where only one partner reached state pension age before 6 April 2016 can also retain savings credit if the older partner had reached 65 and qualified for savings credit before that date AND they have remained continuously entitled to it ever since.
It’s worth adding that if you pay mortgage interest or have other housing costs, have caring responsibilities, are responsible for a child, or are severely disabled, you may be entitled to more pension credit. If you receive attendance allowance or carers credit, for example, this may boost the amount you’re entitled to. The rules surrounding all this are complicated, but the government has provided a free online calculator you can use to work out whether you qualify and how much you might get. This is for guidance only, however. You can’t apply via the calculator and there is no guarantee that you will receive the amount it shows you.
To actually apply you will need to phone the DWP’s Pension Credit helpline on 0800 991234. You will need your National Insurance number, information about your income, savings and investments and your bank account details. The person you speak to will then take you through the application process. This is a subject I discussed in more detail in this blog post, as I recently helped an older friend to do this successfully.
What Does Pension Credit Entitle You To?
As well as the money – which can amount to thousands of pounds a year – if you receive pension credit you will be entitled to a range of additional benefits. A free TV licence if you are over 75 is just one of them. You may also get:
reduced council tax (or free if you are awarded guarantee credit)
Even if you only receive a small amount of pension credit, you will be eligible for all of the above. So it really is well worth applying if there is any chance you may qualify. As mentioned above, you can check first using the free online calculator here and then apply by phoning the DWP’s Pension Credit helpline on 0800 991234.
Don’t delay, as there are now just seven weeks left before the free TV licence for all over-75s becomes a cherished memory.
Equity Release to Boost Your Income
If you’re still struggling to pay the bills even with pension credit, there are other methods to help boost your income. In particular, UK homeowners are fortunate to have opportunities to unlock their property value. An equity release loan could provide the security you desire if you require the means to pay for life’s simple pleasures or cover essential costs.
What’s more, homeowners can unlock up to 65% of their property value, with no compulsory payments required during their lifetime. There’s no limit on how you can use the tax-free cash you receive, so an income lifetime mortgage could be the ideal way to pay your bills and have a bit extra for luxuries as well.
In this recent blog post I discussed how over-75s may be able to avoid losing their free TV licence by claiming pension credit.
As I said then, I have recently done this myself on behalf of an elderly couple who are friends of mine. As promised, today I’ll be sharing my experience of the telephone application process. I hope anyone thinking of doing this themselves or on behalf of elderly friends or relatives may find this helpful.
But first, let’s recap on what pension credit is…
Pension Credit
Pension credit is a state benefit for people above retirement age who are on a low income. It can be paid to single people or to couples. It is usually paid weekly, though you can also choose to have it paid fortnightly or monthly.
Along with attendance allowance – which I discussed in this recent post – pension credit is one of the most under-claimed benefits. According to the Department for Work and Pensions (DWP), around 40 percent of eligible people, or two in five, fail to claim it. That’s an estimated 1.5 million eligible households in the UK who are missing out.
Pension credit actually comes in two parts – guarantee credit and savings credit. Guarantee credit boosts your weekly income to £167.25 if you’re single or £255.25 if you’re a couple (all figures correct as of March 2020). You may be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home). If you have under £10,000 in savings and investments this will not be taken into consideration. If you have over £10,000, it will be assumed that you earn £1 a week per £500 of savings and investments (equivalent to an interest rate of 10.4%). This will be added to your total income when working out your eligibility.
Savings credit is meant to be a reward for those who have saved for their retirement. It’s worth up to £13.73 a week for a single person or £15.35 for couples. To qualify, you must have a minimum income of £144.38 a week if you’re single, and £229.67 a week if you’re in a couple. For every £1 by which your income exceeds this amount, you get 60p of savings credit – up to the £13.73/£15.35 maximum. If your income is less than the £144.38/£229.67 savings credit threshold, you won’t qualify.
While for most people pension credit won’t be a huge amount, it has the big advantage that it acts as a gateway to a range of other discounts and benefits. The free TV licence for over-75s is just one of them. Pension credit recipients may also get reduced council tax (or free if awarded guarantee credit), free NHS dental treatment, help towards the cost of glasses, help with the cost of travel to hospital, cold weather payments, automatic entitlement to the Warm Home Discount, help with rent, free home insulation and boiler grants, and more. All of this means it is well worth applying for, even if you’re not certain whether you qualify.
Checking Your Entitlement
The government is keen that anyone eligible for pension credit should claim it. To that end they recently launched a free online calculator you can use to work out whether you qualify and how much you might get.
You can use the calculator anonymously to check your entitlement (or someone else’s), either as an individual or a couple. You can’t actually apply via the calculator, though. It is just for guidance, to help you decide whether it’s worth putting in a claim.
The calculator asks a variety of questions about your circumstances and current income, including any pensions or other benefits you may receive. The latter may actually improve your chances of getting pension credit. For example, if you receive attendance allowance and/or carer’s credit (as my friends do) this can improve your chances of qualifying. When I did this on behalf of my friends, the calculator showed that they should be eligible for a payment of just over ÂŁ10 a week.
As mentioned above, the results on the calculator are for guidance only, and there is no guarantee that you will receive the amount shown. However, in my friends’ case it definitely confirmed that applying would be worth doing.
Applying for Pension Credit
By far the easiest way to apply for pension credit is to phone the DWP’s Pension Credit Helpline on 0800 991234. You will need to have your National Insurance number, information about your income, savings and investments and your bank account details to hand.
If you’re applying on someone else’s behalf, the DWP like you to have the person concerned with you at the time. The call handler spoke briefly to my friend to confirm her personal details and that she was happy for me to take over the application process.
It turned out to be a two-stage procedure. Initially I spoke to a male call handler who asked a list of questions about my friends’ circumstances and their finances. This was basically the same set of questions I had answered on the online calculator. It was reasonably straightforward, and at the end he informed me that my friends did indeed appear to have a valid claim, so he was going to put me through to his colleague who would take me through the actual application.
This meant that I had to answer the same set of questions again from another DWP employee – a woman this time, as it happens. This did strike me and my friend as rather a waste of everyone’s time. We wondered why the answers I had given initially couldn’t just be passed on to the second person, but I suppose the DWP must have their reasons.
Anyway, we duly went through all the questions (and a few more) again. I would, incidentally, comment that the young woman I spoke to – who told me her name was Jenny – was extremely pleasant and helpful. At one point we went off at a tangent and started talking about our favourite cakes (well, it was tea-time by then). I felt she went out of her way to help us, and she certainly made the whole application process a lot less stressful.
After going through all the questions, Jenny said she would need information about how much exactly was in my friends’ bank accounts and when their (small) private pensions were paid in. This could have been problematic, as it involved logging in to my friends’ online bank accounts and finding this information there. But Jenny was patient and flexible about this, and in the end we found all the information she needed.
The whole process took a little over an hour. if you have to break off half-way through that is possible and you can ask for a reference number so you can complete the application another time. But I really wanted to get the whole thing done and dusted in one call, and thankfully – with Jenny’s help – we achieved that.
The Outcome
After about six weeks my friends received a letter from DWP saying their application had been successful and they had been awarded pension credit.
The amount was the same as had been shown on the online calculator. It was about ÂŁ10.50 a week, going up to almost ÂŁ12 in April (I’m sorry I can’t remember the exact figures). This money was savings credit rather than guarantee credit, but that makes no difference as far as the free TV licence is concerned. If you are over 75 and qualify for either type of pension credit (or both) you are entitled to a free TV licence.
We then submitted the short application form to the TV licence people, with a copy of the first page of the DWP letter confirming the award of pension credit. We haven’t heard any more since, but presumably my friends will receive their free TV licence in the coming weeks.
So that was my experience of applying for pension credit on my friends’ behalf. I hope it has encouraged you to proceed with your own application if you are considering making one. If you get to speak to the lovely Jenny in Scotland, do pass on my regards to her!
And if you have any comments or questions about this post, of course, pleased free free to leave them below as usual.
This is a fully updated repost of my March 2020 article.
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…that’s the question I was asked recently by a Pounds and Sense reader after I mentioned in this blog post that I had a financial adviser.
Of course I replied to her directly at the time, but on reflection I thought it would be good to provide a more in-depth answer to this question on the blog.
To recap, my financial adviser is called Mike and he works for a company called Integrity Wealth Solutions. I was recommended to Mike by my accountant, and he has been advising me for over three years now.
Mike actually looks after about half of my portfolio. He advised me about this initially and set up the recommended investments on my behalf, making maximum use of my tax-free allowances. He continues to monitor my investments and makes any recommendations for adjustments as required. I see Mike once a year in person to review how things are going (both with the investments and me personally). But of course, I can also speak to him by phone (or email) any time if required.
The other half of my portfolio I look after myself, and it is fair to say it is well diversified! As regular readers of PAS will know, I have investments in property crowdfunding, P2P lending, the robo advisory platform Nutmeg, and various others.
Why then do I need Mike? Here are just some of the reasons…
1. Mike is a trained and experienced independent financial adviser/planner who works full-time in this field. I am a money blogger and obviously have a special interest in financial matters, but I have no professional training or direct work experience in this field. I can ask Mike for his professional opinion on any investment-related matters, and while I am not obliged to follow his advice I do of course take it very seriously.
2. Mike has a backup team in his office and access to specialist investment research services and software. He uses these resources to inform his advice, and also to provide in-depth reports (with snazzy-looking charts and spreadsheets!) regarding how my investments are performing.
3. As a regulated financial adviser, Mike has to follow all the correct protocols and ensure that all advice he gives follows best professional practice and is appropriate for my needs and circumstances. He cannot cut corners, invest on a whim or hunch, or let himself be distracted by the latest ‘bright shiny object’ in the investment world. I have to admit that I have been guilty of all of these things myself in the past!
4. As a professional financial adviser Mike also has access to certain investment opportunities or platforms that are not easily accessible to the general public. I won’t go into detail about this here, but it is certainly something I have had occasion to be grateful for in the current coronavirus outbreak.
5. Mike is able to provide personalized but objective advice about my finances, based on information I give him. Money and investment can be emotive subjects, and it’s great to have a sympathetic – but at the same time sensible and detached – professional advising you. I am sure Mike sometimes sighs inwardly at some of my more exotic investments, but he is always interested in what I have been doing with ‘my’ half of my portfolio and happy to offer his thoughts as appropriate.
Are there any drawbacks to having an adviser? Well, of course, you have to pay them! In the case of Mike I paid an up-front fee initially and now pay a small monthly commission. Hand on heart I can say that Mike is well worth his fee, and even in the current exceptional circumstances his charges have been more than covered by the amount by which my investments have grown.
So that is why I have a personal financial adviser. If you are fortunate enough to have money to invest, I strongly recommend you consider engaging one too.
If you would like to find out more about the service offered by Mike and his colleagues at Integrity Wealth Solutions, you can check out their website and contact them on 02476 388 911, or email them at advice@integritywealth.co.uk. They are friendly and not at all pushy, and will be delighted to talk you through the service they offer without obligation. If you do get in touch, please mention that you were recommended by Nick Daws of Pounds and Sense blog. If you end up becoming a client they have said that they will pay me a small fee to say thanks. This will help to cover my costs and ensure I am able to go on sharing tips and advice to Pounds and Sense readers.
As always, if you have any comments or questions about this post, just let me know.
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Today I’m spotlighting a pension advisory service called AdviceBridge that may be of interest to any Pounds and Sense readers who are planning for their retirement.
There is no doubt that in recent years retirement planning has become more challenging. The pension reforms introduced by George Osborne in 2015 gave people much more freedom over how and when they can access their retirement savings. There are many benefits to those reforms – and I’m a fan of them myself – but it does mean most people now have big decisions to make over how to finance their retirement.
A further factor is the decline of ‘defined benefit’ pensions. These guaranteed a certain pension usually based on how long you had worked for an employer and how much you earned during your career. The great majority of working age people nowadays have ‘defined contribution’ pensions, where you build up a pension pot over the course of your working life. This then provides you with an income (alongside the state pension and any other investments) when you retire. Anyone with a pension of this type will have important choices to make over how, when and where to save for their pension, and what to do with it once they reach retirement age. Many people who are not financial services professionals understandably struggle with this and need some expert help (I did myself).
Getting professional financial advice can be expensive – typically pension advisers in the UK charge ÂŁ2,000-ÂŁ3,000 up front and then 0.5% a year. But a new service called AdviceBridge promises a personalized, affordable retirement planning service. Indeed, they say they can do this for as little as a tenth of the average adviser fee, partly by running the service online and over the phone (no face-to-face meetings required).
Although it is a low-cost service, AdviceBridge is staffed by fully trained and regulated financial advisers, and the company is authorized and regulated by the Financial Conduct Authority (FCA). AdviceBridge never holds investors’ money, even when they assist in the implementation of a retirement plan. The advice they give is though covered by the Financial Services Compensation Scheme (FSCS), which means clients can claim compensation of up to ÂŁ85,000 if they receive bad advice.
Who Is AdviceBridge For?
In order to keep their charges low, AdviceBridge say that at the moment they are only able to help clients who meet the following criteria:
You are resident and domiciled in the UK.
You are generally in good health.
You do not have any unsecured loans.
You are not currently contributing to pensions with safeguarded benefits such as a final salary pension.
You do not own any buy-to-let property or any non-standard investments.
You do not receive any means-tested benefits.
You would like to plan individually, not as a couple.
How Does It Work?
Assuming you meet the criteria above, you start by filling in an online questionnaire and completing some electronically-signed compliance documents.
As well as the usual contact information, the questionnaire covers such matters as:
your age
your employment status
your annual income
any existing private or company pensions
whether you will qualify for a full state pension
other savings and investments
your target retirement age
how much income you hope to have in retirement
any major outgoings in future you need to plan for
and so on
Once you have entered this information, you can create and log in to your account to see an overview of your financial situation. You can adjust the parameters in order to achieve a realistic and sustainable level of retirement income. Here is a screen capture showing part of this (an example account, not mine personally!).
Personalized Plan
Naturally, the above is just the first stage of the process. Once you have provided this information and set up your account, the AdviceBridge advisers will crunch the numbers and (with the aid of their specialist software) produce a personalized plan for you.
This is obviously a key document. The sample plan I saw came to 39 pages in PDF form. It was divided into three sections: About You, Our Recommendations and Advice, and Appendices.
About You sums up the information you have provided to AdviceBridge via the questionnaire. It covers your personal circumstances, your retirement savings and investments, and your progress so far towards achieving your retirement goals.
Our Recommendations and Advice is the longest section of the plan. It presents recommendations on every aspect of managing your finances for retirement, including restructuring your investment portfolio if required (with specific recommendations for low-cost personal pensions and ISAs). It also examines the likely outcome of following the recommendations, including both average and conservative projections. A sample page from this section of the plan is shown below.
Finally, the Appendices section includes a range of supplementary information, including more detail about the UK state pension, rules about annual pension allowances and taxation, your options for accessing your pension (drawdown, annuities, etc), and more.
It doesn’t end there, though. Once you have had a chance to read and digest your plan, you can arrange a call with a personal financial adviser from AdviceBridge to talk through the advice and recommendations and help you decide how to proceed. The advisers are not paid commission on product sales, so they are able to give unbiased advice about what investments may be best for you based on your specific circumstances.
So What Does It Cost?
For the basic AdviceBridge service as described above, there is a one-off fee of ÂŁ300 with no recurring charges. This service will suit people who are happy to arrange their own investments based on the advice given and the telephone call with an adviser.
If you want AdviceBridge to set up the recommended investments for you – to implement your financial plan, in other words – they will do this as well for an inclusive fee of ÂŁ500, again with no recurring charges.
Finally, if you opt for the Plan+Implementation service and want ongoing support and assistance too, including dynamic risk adjustment, an annual telephone review, ongoing telephone support, assistance putting your pension into drawdown, and the opportunity to monitor your portfolio online using a dedicated app, AdviceBridge offer all this for an additional ÂŁ100 a year or ÂŁ10 a month.
All of the above is summed up in the table below which I have copied from the AdviceBridge website.
My Thoughts
Overall, I have been very impressed by AdviceBridge, both in terms of what they are offering and the prompt and friendly support they provided while I was writing this article. Here are some of the main things I like about their service:
much lower fees than traditional financial advisers
all fees quoted include any taxes due – what you see is what you pay
range of options according to how much (or little) work you want to take on yourself
non-commission-based advisers, so unbiased advice on what investments will suit you best
advisers are free to recommend across the entire range of investment opportunities
all digital process – no need for personal visits or face-to-face meetings
fully FCA authorized company and advisers
advice is covered up to ÂŁ85,000 under the Financial Services Compensation Scheme (FSCS)
all personal information is securely encrypted
in-depth written advice and recommendations on your retirement finances backed up by telephone support
Any negatives? Well, the only real one I could find is that various groups are currently excluded from the service, e.g. buy-to-let landlords and holders of ‘non-standard investments’. I guess the latter might include me, as I have a proportion of my portfolio in P2P lending and property crowdfunding.
I do of course appreciate that to keep their service so inexpensive AdviceBridge have to streamline their service, but it is a pity if this excludes a significant proportion of people who could benefit from it. I understand that this is something that AdviceBridge keep under review and in future they may remove some of these restrictions. In the mean time, if you aren’t sure whether you are eligible, it is well worth giving them a ring or contacting them via the website to ask (without obligation).
In my opinion, if your circumstances match their criteria, AdviceBridge are well worth checking out. I particularly like their ÂŁ500 Plan+Implementation service, which covers not only researching and producing a retirement plan for you but implementing it as well. I would also seriously consider paying the extra ÂŁ100 a year (or ÂŁ10 a month) for the ongoing service. Obviously that brings the price up a bit further, but it is still far less than you would pay a traditional financial adviser for a similar service.
As always, if you have any comments or questions about this post, please do leave them below.
Disclaimer: This is a sponsored post for which I am receiving a fixed fee (but no commission). Please note also that I am not a professional financial adviser and nothing in this post should be construed as individual financial advice. Everyone should do their own ‘due diligence’ before investing and take professional advice as appropriate. All investment carries a risk of loss.
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One question I get asked fairly frequently as a money blogger is what I think are the best current investment opportunities.
I have to be very careful when responding to this sort of question (and always tell people this). For one thing, I am not a qualified financial adviser, so it would be against the law for me to offer personalized investment advice. And even if I were, I still wouldn’t be allowed to give one-to-one advice without first doing an in-depth fact-find on the person in question.
Of course, this is exactly as it should be. For one thing, everyone’s circumstances are different, and what represents a good investment for me might not be the same for you. It depends on a wide range of factors, including your income and expenditure, your family responsibilities, how much you want to invest, the timescale (and purpose) you are investing for, your age and health, and so forth.
Another important consideration is your attitude to risk. Other things being equal, higher returns come with higher risks. If you’re comfortable with this and willing to accept it in exchange for the chance of better returns, that is of course your decision. On the other hand, if riskier investments would cause you sleepless nights, you are probably better off seeking a safer – if possibly less exciting – home for your money.
In addition, anything I say here is inevitably based on my own experience, and there is no guarantee yours will be the same as mine. I might, for example, have great success with one platform and suffer losses on another. But there is no way of knowing whether your experiences if you invest will be the same as mine. This applies especially if you have to choose specific investments on the platform (as with many P2P/property crowdfunding platforms) rather than putting your money into a pooled fund of some kind.
And, of course – as the financial services ads always say in the small print – past results are no guarantee of future performance…
I don’t want to come across as too negative. I am, after all, a money blogger and investor myself. So what I can – and will – do is talk about my own investing experiences and share information about what has worked well for me this year. It’s then up to you to decide if you want to investigate these opportunities any further. If so, you will need to do your own ‘due diligence’ before deciding how to proceed, perhaps taking professional advice from a qualified financial adviser as well (which I strongly recommend if you are new to investing or at all uncertain).
Although I count myself as a reasonably experienced investor, I do still have an independent financial adviser (Mike from Integrity Wealth Solutions). He oversees about half my investments, while the other half I look after myself. He also advises me on my financial situation more generally and answers any questions I can’t answer satisfactorily myself. i will talk more about this in another post. But I wanted to mention it here to show that I am not at all opposed to using a financial adviser and in general recommend it, particularly when starting out in investing.
My Best Investments of 2019
Below I have listed some of my investments that have performed best this year and/or caused me the least stress and hassle! I have included a few lines about each one, and links to any blog posts I have written about them for further info.
(1) Nutmeg
Nutmeg is a robo-advisory platform. I have used it for my Stocks and Shares ISA investments over the last three years. My investment pot has grown steadily, albeit with a few ups and downs, as is to be expected with equity-based investments. At the time of writing my Nutmeg pot has grown by about 40% since i started investing in April 2016, which is certainly a lot better than I could have achieved with a bank savings account. Of course, you shouldn’t normally invest in any equity-based product with anything less than a five-year timescale.
Nutmeg use exchange-traded funds (ETFs) as their investment vehicle. These are discussed in more detail in my in-depth Nutmeg review, which also includes details of what I invested with them and when. Note that my investment has grown by a further ÂŁ1,100 since that article was published.
(2) Ratesetter
Ratesetter is a P2P lending platform. They don’t pay the highest rates, currently ranging from 3% for instant access to 4% for their Max account (where you pay a release fee of 90 days’ interest if you wish to withdraw). Though better than most bank savings accounts, those rates are clearly nothing spectacular.
One thing I particularly like about Ratesetter, though, is that they have a provision fund that effectively covers investors against defaults. That means you don’t have to worry about diversifying your investments across a range of loans, as is the case with some other P2P lending platforms. Of course, if the whole platform were to collapse the provision fund wouldn’t necessarily save you, but Ratesetter has been going for ten years now and appears professionally and competently run. It has delivered the promised returns to me with no stress or hassle, and I am happy to recommend it based on my experience.
In addition, if you check out my Ratesetter review you can discover how to get a free ÂŁ20 bonus if you invest a mere ÂŁ10 with them.
(3) Buy2Let Cars
I took a long time before deciding whether to invest with Buy2Let Cars, as it is quite an unusual investment. Basically what you are doing is putting up the money to buy a car for someone in a responsible job who can’t afford to buy one outright themselves. You then receive monthly repayments over a three-year period, and a final repayment of capital plus interest at the end of the loan. The minimum investment is ÂŁ7,000, so this is obviously not going to work for everyone. Personally I bought one new car at a price of ÂŁ14,000 in March 2018. Since then I have been receiving ÂŁ250 per month in repayments, with a final payment of ÂŁ8,429 due in month 37. That will give me a total net profit of ÂŁ3,429 based on an annual interest rate of 10% (the rates on offer can vary but once you have signed an agreement the rate is fixed for the duration of the contract).
There are – of course – various safeguards and protections in place, fully discussed in my Buy2Let Cars review. Buy2Let Cars say that to date they have a 100% repayment record to investors, which appears to be confirmed by their Trust Pilot reviews. This investment has been working very well for me, with payments turning up in my bank account every month like clockwork. I am currently semi-retired, so it is providing a useful extra monthly income for me, with a large lump sum due in 2021, just a few months before I qualify for the state pension 🙂 If you think it might work for you, I recommend checking out my Buy2Let Cars review and speaking to my contact there, Brett Cheeseman, who helpfully answered all the questions I had at the time I invested.
(4) Kuflink
Kuflink offer the opportunity to invest in loans secured against property. These loans are typically made to developers who require short- to medium-term bridging finance, e.g. to complete a major property renovation project, before refinancing with a commercial mortgage.
Kuflink don’t pay the highest rates in this field – their loans are typically at an interest rate of around 7% – but in my view they offer a fair balance between risks and rewards. One thing I like about them is that interest is paid into your account monthly on all loans. I only have a relatively small amount invested, but so far everything has been going well with just the occasional short delay in repayment of capital.
Kuflink currently have a generous welcome offer, with cashback of up to ÂŁ4,000 for new investors. Take a look at my Kuflink review for more information about this.
(5) Crowdlords
Crowdlords is a property crowdfunding platform. I have been investing with them almost since their launch and have made a good overall profit. Crowdlords pay competitive interest rates (over 20% in some cases) and offer a choice of equity and debt investments. Equity investments are higher risk than debt ones, but offer the potential for bigger returns if all goes well.
My only reservation about Crowdlords is that I currently have two overdue investments with them. In both cases, though, I have received full and reasonable explanations for the delays, and have been told that the money should be in my account within the next few months. Obviously, if that doesn’t happen, I will let Pounds and Sense readers know.
Crowdlords doesn’t have a welcome offer as such, but they do have a Refer a Friend scheme. If you sign up quoting my code, I will share the commission I receive 50:50 with you. Please see my Crowdlords review for more information about this.
So those are the investments that have given me the best returns and/or least stress during 2019. I do have others as well, including Primestox, ZOPA, Bricklane, The Lending Crowd, The House Crowd and Property Partner. Most of these have still made some money but none has really set the world alight.
Only Primestox actually lost me money. This is (or was) a premium food investment platform. They started promisingly and I made good returns on my early investments, but then they were hit by a series of delays and defaults. This happened with three projects I invested in. In the case of two I have received partial repayments with more promised, but in the third I have probably lost my ÂŁ500. Primestox are no longer advertising investment opportunities, and I assume are re-evaluating their business model.
Property Partner is an interesting case. I have made modest returns on my portfolio this year, partly due to the fact that the property market in general has been in a slump. That said, there haven’t been any issues with delays or defaults, and dividends have been credited to my account every month as promised. It will be interesting to see what happens in 2020 as properties come up to their five-year anniversary and investors have the opportunity to exit at the current market price. As I noted in this recent blog post, this has the potential to create opportunities for both buyers and sellers.
I haven’t included certain other investments in this article. These include my Bestinvest SIPP, which is now in drawdown and holding up well in value. Neither have I included money invested via my financial adviser. This is mostly in funds from Prudential, which again are doing pretty well.
Lastly, I haven’t included the money I ‘invested’ in Football Index. My portfolio has more than doubled in value over 18 months, so in some ways it is my most successful investment of 2019! I am sure luck has played a significant part in this. Nonetheless, if you want to know more about Football Index – and read how you can get a risk-free ÂŁ50 when signing up – you might like to check out this recent blog post.
I hope you have enjoyed reading this article, which has run on a bit longer than I expected. I hope also it may have given you a few ideas to investigate further if you are in the fortunate position of having money to invest.
As always, if you have any comments or questions about this article, please do post them below.
Disclaimer: As stated above, I am not a professional financial adviser, and nothing in this article should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing, and seek advice from a qualified financial adviser if in any doubt how best to proceed. All investment carries a risk of loss.
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Today I’m sharing another eye-opening infographic from my friends at the credit reference agency Equifax.
It’s an unfortunate fact that older people with vulnerabilities can be targeted by scammers. Older people often fear being mugged or burgled – but 90% of all crimes committed against the over 65s are actually fraud.
Scammers don’t always come across as aggressive or pushy – they can often appear very polite and friendly, which is how they win people over and gain their trust. They use several methods to commit identity theft and steal money, which include:
Age UK has reported that almost 5 million people over the age of 65 believe they have been targeted by scammers. People living on their own, or suffering with dementia, are especially vulnerable.
It can take weeks to sort out the aftermath of a scam
The infographic below sets out some ways to help elderly people protect themselves against scammers – and warning signs that might suggest they’ve been targeted..
Thank you to Equifax for an eye-opening graphic. If you help look after an older person – whether it’s a friend or a family member – it’s important to keep an eye out for this and offer advice and support when appropriate. This applies especially if they live on their own.
The infographic includes some excellent advice on ways to reduce the likelihood of being scammed online. But, of course – as mentioned at the start of the article – scammers operate in other ways as well.
Today I have a guest post for you from James Mackay, a certified financial planner and regular reader of Pounds and Sense 🙂
In his article below, James addresses an issue that will be real and pressing for many readers of this blog – how to prepare for retirement and enter it successfully.
Over to James then…
If you’re starting to think about your retirement, these are three important questions that you need to ask.
1. Have You Had Enough?
It’s Sunday evening and you’re winding down after a busy weekend with friends and family. As you sit back in your favourite chair and think about the week ahead, you can’t quite get comfortable.
The thought of going back to work on Monday morning makes you feel a bit uneasy. In fact, the thought of doing it for another 5–10 years makes you feel sick!
If you’ve ever experienced this, you might be approaching the point where you’ve had enough (that’s a technical term).
The question you need to ask yourself is whether the pain of going to work outweighs the benefit. If you find yourself in this situation; where you’re emotionally, physically and mentally drained and no longer excited to perform at the highest level, it’s time to do something about it.
Having had enough doesn’t mean that it’s necessarily time to retire. It simply means that you need to change the status quo.
Maybe you’ve had enough of your current role, but you’ve got more to give in another capacity. Your years of wisdom could be very valuable in a different guise. Perhaps you’ve had enough of having a boss and are ready to go it alone. With the years of experience, it’s no surprise that over 50s are the best entrepreneurs. Or maybe you’re happy to carry on but just want a little bit more flexibility around what you do and when you do it.
These are all useful options to explore, particularly if you haven’t got enough to hang your boots up yet. Sometimes, the benefit of working for “just one more year” can make a real difference to your financial situation.
2. Do You Have Enough?
If you’ve had enough, and are ready to move onto pastures new, the next question is do you have enough?
Whenever I ask this question, people start telling me how much they’ve got saved up. But they’ve got it all wrong. It’s like trying to build a house without the seeing the floor plans. You need to start with the end goal and work back from there.
Working out if you have enough requires knowing:
Your monthly number – this is how much a comfortable lifestyle is going to cost.
The gap – this is the difference between the two, and where your savings come in. Broadly speaking, if you’ve got 20x the gap in savings, you should be fine. Any less and you might not be quite there yet.
But, there’s more to retirement planning than just simply figuring out your ‘number’. Finding your purpose in retirement sounds wishy-washy, but without a clear purpose you’re likely to be one of the 25% of retirees who return to work.
3. Will You Have Enough to Do?
You need to ask yourself what you are going to do when you wake up on that Monday morning, free from the ties of work, and how are you going to fill your time.
If for the last 40 years you’ve been busy being busy – chances are you’re going to get pretty bored sitting around the house for 40 hours a week. I’ve seen many successful individuals retire, only to get bored and return to work within five years. The newly-found free time that retirement provides can be overwhelming for some.
Retirement is about having enough money to sleep at night and enough purpose to get up in the morning. It’s not just about the numbers, it’s about how you’re going to spend your time. Purpose will drive you in retirement, money will fund you. Try not to get those two mixed up.
The bottom line is this… retirement is the biggest transition you’re ever going to make. It’s not the sort of thing you do regularly and not the sort of thing you want to get wrong. By asking yourself these three questions, you’ll improve your chances of achieving a successful retirement.
Byline: James Mackay is a Certified Financial Planner at Frazer James. He has helped hundreds of clients to achieve financial independence and retire with confidence, clarity and purpose.
Many thanks to James (pictured above) for a valuable and thought-provoking post. As a semi-retired 63-year-old myself, I can identify with all of the points he raises.
Actually I think there is a strong case for phasing your retirement if possible, maybe reducing the number of days per week you work initially and/or moving to a less pressured role. This can make retirement feel more like going on an interesting journey rather than driving over a cliff!
I also think there’s a good case for continuing to do some work you enjoy during the early years of retirement at least, to boost your income, provide social interaction, and keep your mental and physical faculties sharp. Of course, voluntary work can do this as well (apart from boosting your income, which may or may not matter to you).
If you have any comments or questions about this article – for me or for James – as always, do feel free to post them below.
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