INDEPENDENT FINANCIAL ADVICE CENTRE
Authorised and Regulated by the Financial Conduct Authority
97 High Street
Your Home is at risk if you do not keep up any mortgage or payments secured upon it!
You should remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of units, and the value derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. The tax treatment of investments and pensions is not guaranteed and may change in the future.
You must be prepared therefore to take a “RISK” that you will be worse off in future by having a “Flexi Access”annuity, if you are risk averse do not read any further, “Flexi Access”Drawdown is simply not for you.
Your “Flexi Access” fund must remain invested and all the asset classes are available i.e. commercial property, stock markets, Fixed Interest etc in the UK and/or internationally. As you should appreciate apart from Cash values will go up and down , sometimes quite fast.
However you would not have the pension fund you have today unless it was invested in such markets and there are ways to minimise risk by investing in a well spread and balanced range of investments, preferably with a range of different Institutions.
In view of the uncertainties of “Flexi Access” , you really should have some other secure income, or sources of cash, to fall back on, so that through bad times you do not have to deplete your “Flexi Access” funds in order to live.
Rather than repeat chapter and verse a very good way to look at the Pros and cons of “Flexi Access”is to study the Money Advice Service guide. This is a service paid for by the financial community including ourselves to help educate the public. Click here to view their page. Also Pension Wise another government initiative to help you make decisions can be viewed if you click here.
Even with our new “simplified” rules these are complex plans and quite frankly if you enter into any pension arrangement without the advice of a knowledgeable IFA you are asking for trouble. There is so much that can go wrong and so many alternatives to consider before reaching a final decision on how to proceed.
Do you know how to build a pension portfolio to reduce risks? Are you a qualified investment manager? Are you an actuary able to work out the maximum income you should take to preserve the fund?
Here at the Advice Centre we have six advisers that can help with these decisions. Why not call us for an initial no obligation exploratory meeting so we can explain what and how we work and what it will cost.
THE ADVICE CENTRE - making sense of a complicated world