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Retirement

Current working theory:

Mortgage paid off just after my 59th birthday. Kids will be mid/late 20s by then and through Uni/Out the house.
Sell up (c£500k) and downsize somewhere out in the sticks* (ideally max £250k)
Work another 5 years (absolute max) and make hay
Live off private/state pensions, investments and equity plus any inheritances that have come our way by then.

*Looking at Italy as a possible retirement location but Brexit has made this trickier.
 

VenisonsMullet said:
Current working theory:

Mortgage paid off just after my 59th birthday. Kids will be mid/late 20s by then and through Uni/Out the house.
Sell up (c£500k) and downsize somewhere out in the sticks* (ideally max £250k)
Work another 5 years (absolute max) and make hay
Live off private/state pensions, investments and equity plus any inheritances that have come our way by then.

*Looking at Italy as a possible retirement location but Brexit has made this trickier.
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500k gaff. You must have done well at work, fairlplay mate
 
Aldhun said:
You can stay in the property once you have gifted it to your children but you must pay the the market rent for a similar property and all bills. If not, the property will not be exempt from inheritance tax. I thought of doing this but couldn't afford the rent as the value of my house is circa £1.5M 10x what it cost 38 years ago
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If you pay your kids rent as well as giving them the house, that’s a really cool way to pass on the inheritance surely? The house and a regular cash payment.
 
Hair Flick said:
If you pay your kids rent as well as giving them the house, that’s a really cool way to pass on the inheritance surely? The house and a regular cash payment.
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Plus a nice tax bill on the rental payments received each month at 20/40/45% and requirement to complete a self assessment tax return.
 
Hair Flick said:
Less repairs, management fees, improvements etc. could do the house up nice with all that rent money.
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Or alternatively, you downsize for your retirement, realise a lump of cash, gift cash to your kids, live 7 years (currently) and you're sorted. And still own a property which is IHT free (as long as its your main residence and less than £500K) that your kids will still inherit on your death with a CGT uplift and can sell and realise the cash at that point.

Main point being, seek proper advice from a suitably qualified person before doing anything that might cause problems in the future.
 
TommyB said:
Or alternatively, you downsize for your retirement, realise a lump of cash, gift cash to your kids, live 7 years (currently) and you're sorted. And still own a property which is IHT free (as long as its your main residence and less than £500K) that your kids will still inherit on your death with a CGT uplift and can sell and realise the cash at that point.

Main point being, seek proper advice from a suitably qualified person before doing anything that might cause problems in the future.
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That way I’m not living in a house I love, give away all the money in one fell swoop and lie awake at night worrying if I’m going to live for another 7 years.

That would cause me problems now, never mind the bleak future living in a pokey hovel ;-)
 
TommyB said:
It's still in your estate and a personal asset until it's transferred to trust.
If the trust doesn't actually exist or own any of the property pre care home admission then it's included in the assessment.

Also needs to consider the fact that if he signs it over to kids he loses complete control of the asset. They then have the right to boot him out and sell the property and there's not a thing you could.do about it. So make sure your kids are trustworthy before doing this.
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A friend of mine’s wife died and left her half of the family home to their son and daughter, they wanted the house sold and their share of the proceeds. Nothing my friend could do, he didn’t have resources to buy them out. He took his half, went to live in Spain and removed his offspring from his will. Beware what you do with your home.
 
Pantomime Mackem said:
No one on this thread seen King Lear then?
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Unlikely. Even less likely that they have read it.
(I haven't done either - and I don't see that changing).
Hair Flick said:
That way I’m not living in a house I love, give away all the money in one fell swoop and lie awake at night worrying if I’m going to live for another 7 years.

That would cause me problems now, never mind the bleak future living in a pokey hovel ;)
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It's amazing what the desire for cash does to people.
 
Last edited:
been retired just over a year now and money side isnt an issue.
i have moved overseas and live in a place where unhealthy food temptations are at a minimum. I exercise regularly and only eat one main meal a day and have given away booze ( not one alcoholic drink in 9 months ).
my biggest 'gripe' is getting used to finding things to fill the hours. work took , in essence at least 9 hours of 24 available. then there was the cerebral and social aspects. yes many of colleagues were wankers ( sure it was mutual ) . i am in very good nick for my age and when people find out how old I am , so many, not all, come out with a deluge of how well retirement suits me etc. i find much of it patronising though maybe I am overly sensitive and over analysing.
bottom line is its up to me to find something that rows my boat but jeez that sense of irrelevance is hard to shake off
 
Brother Lee said:
I love this site, I get some cracking advice on many things but there's also lots of scary 'advice' on this thread and other financial threads. Full disclosure I'm a financial adviser and have been for over 30 years.

You pay for a service which happens to be financial advice. You're told what that service will entail and how much it will cost before any work is started. Much like getting a price from a builder or any other tradesmen.

Financial advisers haven't received 'commission' since the retail distribution review was introduced in 2012. They don't receive 'trail commission' as quoted on this thread. You wouldn't ask a builder to give you half his fee because you know what you want him to do. Yet posters on this thread expect a qualified financial adviser to share their 'commission'.

You're also paying for protection for the advice provided, as they're regulated by the FCA unlike the posters on here. 'Stick it in a global tracker with this company' isn't the one size fits all answer. Are you comfortable with the risk of that? Are you comfortable with 25% drop in a bad year? Your capacity for loss probably isn't even the same as your wife's, never mind a random on an internet forum. What if that 25% drop happened the year before you're planning on retiring? There are far too many variables and everyone's circumstances are different.

I could go on but I'll probably start getting pelters. There are some very knowledgeable posters on financial matters on this thread but not all.

You don't have to engage with a financial adviser but if you find a friend or family member who does, that is probably the best way to find one you can respect and deal with. You might even be happy to pay for their advice.
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Can you set up as a financial advisor without any qualifications?How are you regulated ?can you be banned from being financial adviser?
 
oddbod said:
Can you set up as a financial advisor without any qualifications?How are you regulated ?can you be banned from being financial adviser?
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No you have to have qualifications which were introduced in 2012.

We're regulated by the financial conduct authority and have to adhere to their rules and regulations. Following these rules we have to obtain an annual statement of professional standing. This relates to further demonstration of learning as well as declarations regarding personal circumstances, criminal convictions or investigations etc.

Yes you can be banned for multiple reasons and many wronguns have over the years. The FCA publicise these cases but you could also be removed from the network you might operate through. The sole purpose of these rules is to ensure good client outcomes with protection. If you're unhappy with advice given you can complain.

There obviously will still be advisers out there who operate differently regarding ethics and morals. Some will charge different fees based on their own companies operating costs. There are such things as 'decency limits' regarding fees. The bottom line is, there are wronguns in every industry, the qualifications and regulations got rid of a lot of them though.

This is why I said in my original post, try and find one who friends or family use as they're more than likely happy with the service they receive and pay for.
 
Brother Lee said:
I love this site, I get some cracking advice on many things but there's also lots of scary 'advice' on this thread and other financial threads. Full disclosure I'm a financial adviser and have been for over 30 years.

You pay for a service which happens to be financial advice. You're told what that service will entail and how much it will cost before any work is started. Much like getting a price from a builder or any other tradesmen.

Financial advisers haven't received 'commission' since the retail distribution review was introduced in 2012. They don't receive 'trail commission' as quoted on this thread. You wouldn't ask a builder to give you half his fee because you know what you want him to do. Yet posters on this thread expect a qualified financial adviser to share their 'commission'.

You're also paying for protection for the advice provided, as they're regulated by the FCA unlike the posters on here. 'Stick it in a global tracker with this company' isn't the one size fits all answer. Are you comfortable with the risk of that? Are you comfortable with 25% drop in a bad year? Your capacity for loss probably isn't even the same as your wife's, never mind a random on an internet forum. What if that 25% drop happened the year before you're planning on retiring? There are far too many variables and everyone's circumstances are different.

I could go on but I'll probably start getting pelters. There are some very knowledgeable posters on financial matters on this thread but not all.

You don't have to engage with a financial adviser but if you find a friend or family member who does, that is probably the best way to find one you can respect and deal with. You might even be happy to pay for their advice.
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About a year before I retired,
I sat with a few FA for a free 1 hour consultation, as I had never used one before, so was feeling a bit sceptical at the time tbh.
This hour just gives you an overview of what they offer.
How wrong I was I Decided to go with one to help me with my redundancy and pension lump sums,
He has since helped me move money into products I had never heard of, leave money, in certain products as it’s was already well invested in first place and took away all the stress and worries in what can be a minefield.
The best bit for me was he got me a big chunk of overpaid tax back, without a FA I would have lost that money.
Would highly recommend anyone retiring to get a FA👍
 
Brother Lee said:
No you have to have qualifications which were introduced in 2012.

We're regulated by the financial conduct authority and have to adhere to their rules and regulations. Following these rules we have to obtain an annual statement of professional standing. This relates to further demonstration of learning as well as declarations regarding personal circumstances, criminal convictions or investigations etc.

Yes you can be banned for multiple reasons and many wronguns have over the years. The FCA publicise these cases but you could also be removed from the network you might operate through. The sole purpose of these rules is to ensure good client outcomes with protection. If you're unhappy with advice given you can complain.

There obviously will still be advisers out there who operate differently regarding ethics and morals. Some will charge different fees based on their own companies operating costs. There are such things as 'decency limits' regarding fees. The bottom line is, there are wronguns in every industry, the qualifications and regulations got rid of a lot of them though.

This is why I said in my original post, try and find one who friends or family use as they're more than likely happy with the service they receive and pay for.
Click to expand...
Those IFA's will also work closely with tax advisors who they should be putting you in contact with at least for a discussion of the plan so that you're furnished with the full facts (current and potential) before doing anything with your assets, estate or income.
 
When I retire I plan on living within my means and enjoying myself. Worrying about moving money about to gain an extra few percent income a year will be the last thing on my mind. I know everyone is different but making the most of my money has never been important, making the most of my time has. I came into this world with nothing and I have most of it left.
 
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