Listener Questions Episode 16

It's time for another Listener Questions session! This week we cover commercial property in pensions, ethical investing, inherited pensions and so much more.

Shownotes: https://meaningfulmoney.tv/QA16 

 

01:02  Question 1

Hi Peter / Roger,

Many thanks for all the wisdom plus superb book, you two really make my week with the banter.

I always hear about DB and DC pensions but wondered if you'd ever cover the following:

Many business owners like myself own buildings outright (as a pension) within a Commercial Sipp and then loop back into this rental payments. Also, within this using a GIA for diversified investments including cash lump sums for tax relief when possible.

I'm heading North of sixty soon and feel its time to start thinking of the exit plus implications.

It would be fantastic to hear your advice on these in the future.

Best Regards, Steve

05:47  Question 2

Hello Pete

Can ethical investing beat inflation?

Myself and my husband are both 63.  We retired at the end of last year, having sold the business we have run for the majority of our working lives. We have some small DC pensions and a SSAS which includes a commercial property.  We both have cash ISAs.

I've done some research, helped massively by your podcasts and YouTube videos, so thank you so much for these. From what I have learned I understand that  we need to invest the cash from the business sale in Global Equities.  We also need to look at the investments within the SSAS which, up to now, the SSAS provider has managed.  Cash in the SSAS also needs to be invested.

Is there a way of picking a Global Index Tracker which is ethical and will beat inflation and that requires minimal management to keep fees low?  I realise that we need to look at our cash accounts too with this in mind.

Many thanks for all your excellent resources and advice, the fog of financial planning is starting to clear and I'm feeling less panicked about being able to manage the money for our future.

Kind regards, Rachel

12:52  Question 3

Dear Pete and Rog,

Your podcasts have been a real source of steadiness for me over the past few years - a pair of reliable voices amidst the wider financial chaos.

I'm writing with a question about nominee (beneficiary) pensions.

Sadly, my father passed away recently, and I've inherited half of his private pension pot - around £70k from a total of £140k. It's been set up as a nominee pension, which I understand allows the money to remain invested and grow tax-free, with flexible access at any age. This has been a significant and unexpected legacy, and it's opened up the possibility of scaling back to part-time work well before the official retirement age. (I'm in my late 30s, so there's still a way to go, but it's a big deal for me and brings more options for me)

I don't plan to draw from the pot for many years. My intention is to let it grow. The catch, however, is that the provider, without naming names, (let's just say three letters, last one P), is expensive compared to what I'm used to (I invest monthly in a Vanguard LifeStrategy ISA). When I've done some projections I can see that if leave the money where it is indefinitely, the fees will quietly erode a decent chunk of the long-term gains.

There's a 6-year early exit charge, so for now I'm content to leave it be. I'm still dealing with bereavement and all the admin of being an executor, so pressing pause on any big financial decisions feels like the right call at this early stage. But when that 6-year period ends, I'll be weighing up whether to stick or twist.

My question is: can nominee pensions be transferred to another provider without losing the key benefits, like the tax-free growth and the ability to access the funds flexibly before retirement age?

I've looked into alternatives- transferring into my ISA would take years due to the annual limit; a general investment account loses the tax perks; and a conventional pension would lock the funds away until age 55+, which undermines the very flexibility that makes this pot so helpful for future semi-retirement plans.

I'd be really grateful for any ideas or thoughts you might have on this.

All the best, Alan

19:29  Question 4

Hi guys,

I am 31 years old and currently investing 15% of my gross income into my retirement.

6.8% via my employer's DB CARE scheme, and the other 8.2% into my SIPP. My wife and I also contribute £200pm  into a S&S ISA for our son. We hope by the time he is 18 (3 months old now) this fund could pay for university, travel, driving - whatever he wants to do (within reason!).

By age 60, I would like to be in a position to retire, whether I do that or not is another question, but I would at least like the option to.

I often see YouTube videos titled "SIPP vs ISA which is better?" but I don't see much about how to use them in tandem.

Do you have any advice on the optimal weighting between an ISA and SIPP given I'd like to retire before State/DB pension age and therefore, should I be splitting the 8.2% with a S&S ISA too?

Thank you! John

24:08  Question 5

Hi Pete & Roger, I'm a big fan of the podcast, it's been a great source of advice for me - thanks for that.

I'm currently 55 and probably not looking to draw down anything from my pension until I'm 60 at the earliest. I hadn't paid into my pension for a number of years and now trying to contribute as much as I can to catch up a bit.

My main SIPP is £130,000 with Vanguard in a FTSE Global All Cap Index Accumulation Fund and is 100% equity as I'm looking for as much growth as possible over the next 5-10 years and beyond. I also have £25k in another SIPP, a small NEST workplace pension and approximately £60k in a Stocks & Shares ISA, all of which are in various global tracker funds.

My main question is, is it a good idea to have everything in global index funds because of the heavy weighting to the USA, especially in tech stocks? I had considered changing my Vanguard fund to their LifeStrategy 100 fund which has a bit more of a UK weighting. I know you probably can't suggest specific products, but I wondered what your general advice would be on this, especially with all the uncertainty in the USA under the Trump administration?
Thanks in advance, Alex Wilson

30:29  Question 6

Hi Pete and Rog,

Love the podcast and I've been listening for a good few years now, so I thought I'd throw my hat into the ring with a question.

I was hoping you could give a quick overview of Qualifying Corporate Bonds, what characteristics the bonds need to have to qualify, what the tax treatment is and where to invest etc.

I'm in the fortunate position of having made my contributions in full to my ISAs and Pensions and I'm looking for a tax efficient way to invest an extra few £s.

I've heard that they are effectively treated like Gilts but was hoping you could illuminate.

Thanka, Adam from Skipton, North Yorkshire