Let it snow... @pensionsgirlieblog 5 March 2018
Lots of white stuff about this week. Cue much agonising on Tuesday morning about whether to risk the journey to Glasgow for the regional PFS meeting. In the end I stayed home, unlike my friend and new colleague who ended up spending the night in the Weej followed by a 4 hour journey the next day of less than 40 miles. Talk about risk and reward.
The offspring discovered the concept of snow this week too. Able to use his sledge for the first time in 7 years he found it doesn’t work very well if you don’t have a hill to use it on. Having tested a number of local inclines he settled on the golf course, which had just the right slope-iness and length, as well as a cool bit which was almost a jump.
Sometimes you have to take a risk to get what you want. Every adviser knows people hate annuities, but they also want security. One of the risks of non-advised drawdown is the possibility that people will try to replicate the safety of an annuity by investing their fund in cash and low-risk assets. Such a portfolio will not outperform inflation, never mind offset the effect of any income withdrawals, a balanced portfolio containing equities and high income stocks might. As advisers one of our jobs is to find out how much risk clients need to take to have a chance of achieving their goals and keeping them on track when they hit the bumps.
On the news front I was asked by a friend if I could “just tell her” how much she could put into her new pension this year, having left her final-salary rewarded job earlier this year. Considering all the permutations involved I decided it was easier to just write an article so look out for this and a case study on retirement options in the next few days.
Top moment of the week however goes to the moppet-come-teenager who decided to sneak up on his dad, with a carefully-aimed snowball. Unfortunately he failed to notice the “For Sale sign” sticking out of the wall we were passing. Cue rebounded snow splatting all over the chucker while the chuckee walked on oblivious. A perfect would-have-got-£250-from-You’ve-Been-Framed moment, if only I had my camera out.
It is wise to focus on one’s goals, just don’t forget about the s*** that can get in the way.