Retirement

[Will e]

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.

Agree with seeking proper advice, IHT threshold on main residence property is currently 175k if left to children or grandchildren mind. Double that if your husband or wife died before you as you inherit their allowance, same with the 325k on your estate doubles.

 

[gatopreto]

Depends where you live. It can be a 2 bed terraced house in some parts of the country.

Aye, I know, It doesn't automatically make it a good house.
But it's still an achievement having 500k of assets

 

[Will e]

Agree with seeking proper advice, IHT threshold on main residence property is currently 175k if left to children or grandchildren mind. Double that if your husband or wife died before you as you inherit their allowance, same with the 325k on your estate doubles.

My post above is very misleading, 325 and 175 can be lumped together for a property including all other assets, but if there is no property 325k is the threshold.
Best ask a professional like.

 

[The Fullwell Step]

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

At this moment in time I crave being irrelevant. 2 years of pretending to like people at work then I'm happy to sink into obscurity.

 

[Charmer]

Can anyone point me in the right direction to sign house over to the kids as I don’t want it sold beneath us to pay for care? Haven’t any health issues at present but recently friend of ours has put her mother into 24 hour care £1400 a week using her savings but that’s due to run out and they are being told they must sell house to pay for any future care advice I have received is:

Current advice I have received is:
a gift would be partially exempt for IHT purposes and will fall outside of your estate if survive 7 years after the gift
after the gift, property becomes part of your kids' estate form IHT purposes;
there could be a charge to capital gains tax at the time of the gift and the deemed proceeds = market value when gifted;
there are unlikely to be any CGT reliefs to mitigate tax on the gift;
it might be possible to gift a part of your property if that suits your needs better.

Alternatively you might consider putting the property in a trust, with the kids as beneficiaries and you and your partner being the trustees with asset control. This way the the property would be outside of your kids estates for IHT. There would be compliance obligations though depending on the property and the plans the trust has for it.

 

[Matt Hopkins]

Current advice I have received is:
a gift would be partially exempt for IHT purposes and will fall outside of your estate if survive 7 years after the gift
after the gift, property becomes part of your kids' estate form IHT purposes;
there could be a charge to capital gains tax at the time of the gift and the deemed proceeds = market value when gifted;
there are unlikely to be any CGT reliefs to mitigate tax on the gift;
it might be possible to gift a part of your property if that suits your needs better.

Alternatively you might consider putting the property in a trust, with the kids as beneficiaries and you and your partner being the trustees with asset control. This way the the property would be outside of your kids estates for IHT. There would be compliance obligations though depending on the property and the plans the trust has for it.

You seem to be talking only about IHT, there's different rules for disposal of assets when it comes to avoiding care costs. To be fair though nobody knows what the rules are Think I've mentioned it before a bloke I knew went to 2 solicitors about avoiding care costs one said yes no problem it's easily done other said no chance

 

[TommyB]

Agree with seeking proper advice, IHT threshold on main residence property is currently 175k if left to children or grandchildren mind. Double that if your husband or wife died before you as you inherit their allowance, same with the 325k on your estate doubles.

Yea. Could have up to £1 million if your a second death. £2x £325K and 2 x £175k

 

[faith brothers]

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.

Kids sound like twats there mind

 

[cfg]

Kids sound like twats there mind

They were, the house was in the New Forest and worth a fortune. It’s a long story, kids were spoilt rotten. One of them that I know of has burnt through the money and other not far behind. Dad’s as happy as Larry

 

[EcosseMackem]

Retiring in 5 weeks time
I’ve just turned 60 and was hoping to add another couple of years to the pension pot
My missus is poorly though so sometimes you have to change your aims
Family comes first

 

[Paul3845]

Has anyone talked to a financial advisor at around 50 and did it make much of a difference?

By then I'll be 8-10 years out, the mortgage will be paid off so it feels about the right time to plan for the final run-in.

I engaged my FA at 48, now 50, has made a massive difference last 2 years. 20% growth. Wish I had done it earlier.

 

[42]

I engaged my FA at 48, now 50, has made a massive difference last 2 years. 20% growth. Wish I had done it earlier.

Has it though, or was it just that the markets have done well over last year.
If you've only got 20% in total for last 2 years, then it's not great as my vanguard account is up about 30% over last 2 years.

 

[Paul3845]

Has it though, or was it just that the markets have done well over last year.
If you've only got 20% in total for last 2 years, then it's not great as my vanguard account is up about 30% over last 2 years.

Investment top trumps ... you win.

 

[42]

Investment top trumps ... you win.

I'm not playing top trumps, just pointing out that the markets have done well over the last year, and a global tracker would've returned around the 20% mark over last 12 months. Obviously if you've got a decent % in bonds, then it'll be why you've got a lower amount, but I doubt the FA is the contributing factor for you doing well.

 

[Paul3845]

I'm not playing top trumps, just pointing out that the markets have done well over the last year, and a global tracker would've returned around the 20% mark over last 12 months. Obviously if you've got a decent % in bonds, then it'll be why you've got a lower amount, but I doubt the FA is the contributing factor for you doing well.

Whatever ... you don't know my circumstances

 

[Brother Lee]

Has it though, or was it just that the markets have done well over last year.
If you've only got 20% in total for last 2 years, then it's not great as my vanguard account is up about 30% over last 2 years.

Investment top trumps ... you win.

Whatever ... you don't know my circumstances

This was my point earlier in the thread. @42 is very knowledgeable on lots of financial matters as he's proved on other threads.

He's right in what he says, for example regarding a vanguard global tracker. However performance is only one part of financial planning. He's acknowledged when he said he doesn't know what percentage you have invested in bonds/fixed interest assets.

Capacity for loss is more important than performance. Even if you're 10 years away from retirement you might not be comfortable with the potential loss of a global tracker in a bad year.

I had a client who came to me after self investing an awful lot of his pension fund in a technology fund before the crash. Believe me, he takes a lot more of a balanced view on where he invests now.

Back in the day, in the industry we used to say people listened to the bloke in the pub. Now they have social media.

You summed it up perfectly @Paul3845 'you don't know my circumstances' he doesn't and he acknowledged that. He's also correct that markets have done well over the last year, as hope of potential cuts in interest rates have started to be reflected in performance.

Every client I engage with just wants that reassurance and guidance. Some don't and that's fine.

 

[safcforever]

In that case , I've got no chance

I’m getting very nervous. Early 40’s
14 years in the army, got a personal pension going and just started a serious savings account.

I don’t own a home, so my plan is if I can’t make it at 60 then I'm robbing a bank and living off the government

 

[Select coaches]

I’m getting very nervous. Early 40’s
14 years in the army, got a personal pension going and just started a serious savings account.

I don’t own a home, so my plan is if I can’t make it at 60 then I'm robbing a bank and living off the government

I’m not an advisor, but my serious savings would be put into buying a house. Couldn’t imagine having to rent in retirement

 

[Charmer]

You seem to be talking only about IHT, there's different rules for disposal of assets when it comes to avoiding care costs. To be fair though nobody knows what the rules are Think I've mentioned it before a bloke I knew went to 2 solicitors about avoiding care costs one said yes no problem it's easily done other said no chance

Yes only talking about IHT. Advice I received wasn't based on avoiding care costs but if that's a side effect then so be it.

 

[hoolio]

Has it though, or was it just that the markets have done well over last year.
If you've only got 20% in total for last 2 years, then it's not great as my vanguard account is up about 30% over last 2 years.

I would imagine he has his eyes fully on retirement so his investments will reflect that and carry less risk than yours.