Good article in the Sunday Times Money section this week (I don't often say that) about QROPS - Qualifying Recognised Overseas Pension Schemes. These are pension plans that may be suitable for those retiring abroad. You can transfer in the benefits from an existing UK pension scheme (even after you've left the country) and then take your benefits, once you've been out of the UK (other than short visits) for five complete tax years you can then take benefits is a variety of formats to suit the tax laws of the country you've retired to.
So, for example, you can get up to 40% tax relief on pension contributions made on UK earnings and then receive your pension income (from age 60) completely tax free in Australia. Other benefits can include a wider investment choice and the ability to pass on any unused fund to your chosen beneficiaries on your death, generally speaking at a more favourable tax rate than the likely 82% payable if you'd died in the UK.
Care is needed as some of these schemes are not, in my view, bona fide so expert advice is essential. Generally the extra costs of a QROPS make a transfer uneconomic unless your pension fund is worth at least £100k. Run a mile from any adviser telling you you be able to get your hands on all of your pension fund in cash form - highly unlikely!
Investment Risk Warning
The value of your investments and any income from them can fall as well as rise and investors may not get back the amount invested.
Monday, 5 October 2009
Wednesday, 26 August 2009
Appetite for risk
According to my copy of this week's Fund Strategy magazine, investors' appetite for risk has reached the highest level in six years, as economic indicators start to turn positive and markets rally. The source of the data is Merrill Lynch, a fund management company, so we must take its findings with the proverbial pinch of salt, given their vested interest.
They also found that only 8% of investors expect a double-dip recession i.e. where the market recovers a bit before falling back down again and eventually recovering some time later (think of a 'W' shaped graph as opposed to a 'V' shaped one).
Well, I'm afraid that I'm firmly in with the 8%. I also, no offence, have no faith in the average investor 'calling' the market. I've been doing this job for too long not to have seen many 'bubbles' driven by people jumping on topical bandwagons, for example, technology shares, just before they crashed.
So, for what it's worth, my personal view is that we will see a market correction i.e. fall, probably a sizeable one, in the Autumn. I think that the outlook for both property prices and UK equities is bad in 2010, given that the new UK government is going to have to cut public spending by huge amounts, putting a lot more people out of work.
So the key to successful investment in the next few years is, as ever, having a diversified portfolio, reviewed regularly and using pragmatic fund managers who can see through the hype generated by their own marketing departments!
They also found that only 8% of investors expect a double-dip recession i.e. where the market recovers a bit before falling back down again and eventually recovering some time later (think of a 'W' shaped graph as opposed to a 'V' shaped one).
Well, I'm afraid that I'm firmly in with the 8%. I also, no offence, have no faith in the average investor 'calling' the market. I've been doing this job for too long not to have seen many 'bubbles' driven by people jumping on topical bandwagons, for example, technology shares, just before they crashed.
So, for what it's worth, my personal view is that we will see a market correction i.e. fall, probably a sizeable one, in the Autumn. I think that the outlook for both property prices and UK equities is bad in 2010, given that the new UK government is going to have to cut public spending by huge amounts, putting a lot more people out of work.
So the key to successful investment in the next few years is, as ever, having a diversified portfolio, reviewed regularly and using pragmatic fund managers who can see through the hype generated by their own marketing departments!
Wednesday, 18 March 2009
The best things in life are free?
I hope that you all had a great St Patrick's Day.
My wife, Jill, and I went to the Waterfront Hall in Belfast last night to see a concert in tribute to the work of Bill Whelan, he of Riverdance fame. It was a freebee - tickets were available FOC from the BBC website.
The music was extraordinary and artists, including dancers, from across Europe (including three from Galicia in Spain) were there to support the Ulster Orchestra.
Congratulations to the BBC on running such a quality event at no (additional!) cost to the licence-payers that attended. The concert was broadcast live on BBC Radio Ulster and if you'd like to listen you'll find it here - http://www.bbc.co.uk/iplayer/radio/bbc_radio_ulster.
I hope that you enjoy it as much as we did!
Steve
My wife, Jill, and I went to the Waterfront Hall in Belfast last night to see a concert in tribute to the work of Bill Whelan, he of Riverdance fame. It was a freebee - tickets were available FOC from the BBC website.
The music was extraordinary and artists, including dancers, from across Europe (including three from Galicia in Spain) were there to support the Ulster Orchestra.
Congratulations to the BBC on running such a quality event at no (additional!) cost to the licence-payers that attended. The concert was broadcast live on BBC Radio Ulster and if you'd like to listen you'll find it here - http://www.bbc.co.uk/iplayer/radio/bbc_radio_ulster.
I hope that you enjoy it as much as we did!
Steve
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