Pension Advisors

by Pension Forecast

David asks…

why do i need a financial adviser to claim my pension when i know exactly what i should receive?

ariva say I need an fa to deal with my pension when i have been sent all the details from them on what I am owed. Being 58 years old and out of work at present i do not have the funds.

Pension Forecast answers:

They think you are a financial idiot.
You don’t need a financial advisor.
Tell them you know how to handle this money yourself and that you won’t spend it all in the first 5 years.

I would call a brokerage account and roll over the money to an account.
They are probably a bit scared that you are getting a check for this and that you will spend it.
US answer: Just open a Schwab or Fidelity account and roll over the money into an IRA.
The broker will tell you 100% what to do from there.

Last thing you want is all this cash in your hands – in all honesty – the company is concerned that you don’t have a broker…

Ruth asks…

One more time! This is my third try. How does my $25,000 pension fit into my portfolio, or net worth?

I must not be expaining this right but here I go again. If I am receiving an annual pension this year of $25,000 but will rise every year at the rate of inflation, how does this pension fit into a portfolio or net worth? For example, if next year inflation increases by 3%, my pension will rise to $25,750. If I’m trying to figure out my finacial portfollio, what value do I place on this pension? I’m 46 now. Hyperthetically, if I live until 78, (average age for men when they die) add 2% a year for inflation this pension will have been worth 1.28 million dollars over it’s life time. What value would a financial advisor put on this pension. There, I can’t explain it any better than that. Come on financial people, lets put our thinking caps on.. Thank you

Pension Forecast answers:

Your pension is not an asset–it’s income. It has no place on your balance sheet or net worth statement. Even if you had a $1000000/yr salary (or a guaranteed lotto payment or disability check or any other “guaranteed” income), it still wouldn’t affect your portfolio or net worth–unless and until you purchase an asset with it.

Your pension is a great financial “asset” in terms of security, but If you want to increase your net worth or diversify your portfolio, you must use your payment to purchase stocks, bonds, real estate, cash or something else that can be clearly listed on your personal financial statement.

Jenny asks…

How much does a IFA cost for a pension scheme transfer, in the UK?

I’ve just changed job. I’d like to transfer my previous pension ccheme to my new company’s pension scheme.
I am required to contact a Independent Financial Advisor (IFA). How much does it cost to me? Can I do it without his advice?

Pension Forecast answers:

Most of them either work for a fee or they get a commission from the companies they recommend. A fee is likely to be in the region of £100/hour!
My guess is that you aren’t obliged to consult an IFA, but your new company is obliged to suggest that you do, in order that they don’t appear to be pressurising you – it’s just one of those warnings, like values can go down as well as up.
If the schemes are comparable, shouldn’t be a problem. Research what you’re getting by asking the payroll and pension managers how much you contribute, how much they contribute and on what basis the eventual pension is calculated.

Paul asks…

What forms do I fill out if I am a Puerto Rico resident receiving a LS Pension Payment from a US Based Company?

I am commencing my pension benefit for retirement and I was hoping someone would know what form I need to complete in regards to the LS benefit. Do I need to fill out a W4-P form as well or do I not pay federal taxes? I know I should be asking a tax adviser but thought I would put the question out here first. Thanks

Pension Forecast answers:

Megatron

Charles asks…

Has anyone used Hancock Life & Pensions Mortgage advisors?

Pension Forecast answers:

One of my relatives living in Wales used them and thought they were professional enough.

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