Investing your fund after the transfer

As you are going through the transfer advice process you will need to start to think about how you will invest your pension fund after the transfer.

The two options are:

  1. To do it yourself using what’s known as an "execution only platform", i.e. without advice; for example, like YouInvest or Hargreaves Lansdown 

or

  1. To have the investments managed for you by an adviser or wealth manager.

Tideway’s pensions advisers will be happy to discuss the pros and cons of both options but here are some useful pointers and links:

Doing It Yourself

You will need to:

  • Work out your own withdrawal plan for taxable pension income
  • Select a sensible portfolio of investments
  • Go online and manage the account on a day to day basis

Doing it yourself will save you advice costs each year, but don’t underestimate the time you will need to put in to do it well and it can be stressful if things start to go wrong.

Most of the good execution only sites have decision trees and model portfolios for you to copy and follow, but it’s very important you think for yourself and consider your objectives and have a clear plan before making investments.

Getting Professional Help

Having your investments managed should be a value added process not just an extra cost burden and will be the right choice for most people who don’t have the inclination to dedicate the time, or the expertise to do it themselves.

To ensure that it is value added and not just a cost drag you should be looking for:

  • A ‘holistic’ approach that will consider all your investments and not just the pension fund to generate the income you need
  • A degree of planning around how investments will be bought and sold to avoid selling things at a loss to meet income needs
  • An investment selection process and beware of those predicated on just past investment returns, always remember past returns are a very poor guide to future returns
  • An ongoing solution that will rebalance and manage your investments from year to year as your needs, tax rates and thresholds and investment markets will all change overtime

Tideway Wealth offers a comprehensive ongoing wealth management service specifically designed for those approaching and at retirement who need to generate reliable income from irreplaceable capital.

Follow the link below to find out more about Tideway's Wealth Management service.

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Financial Conduct Authority.
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Tel. +44 (0)20 3178 5982
info@tidewayinvestment.co.uk