Inflation vs Interest rates affecting the CETV
With inflation running at levels we have not seen for the last 40 years, many of my clients are questioning the benefit of waiting to obtain a CETV, hoping that the increased inflation will have a positive affect on the CETV values. Before we explore this, it is important for us to understand the relationship…
The Attractiveness of your PCLS
I was recently working with a client concerning a pension transfer of his defined benefit (DB) pension scheme; and some questions which arose concerning his available PCLS. Owing to the fact that this was not the first time such question has arisen, I thought it wise to write a brief piece on how the PCLS is…
Understanding the TVC
In October 2018, the FCA made the provision of an appropriate pension transfer analysis (APTA) mandatory. One of the elements which the APTA needs to contain is the Transfer Value Comparator (TVC). Traditionally pension transfer reports utilised the critical yield, however, after much criticism for lack of understanding, and the over reliance on the critical…
Do you understand your pension statement?
For most of us, the two main assets we will ever possess, are our house and our pensions. The former is easy to understand. A net income/expense calculation can provide us with clarity whether we are living efficiently or not. The benefits it provide are simple to understand. It is a tangible asset which one…
There they go again…
One of the most asked questions in connection with investing – perhaps second only to “What would be my return?” – is “How much income will I receive?” I’ve met a lot of investors who require an income from their investment in order to cover their living expenses. For perhaps behavioural reasons, many investors are…
A CET What?
Anybody who has looked into a defined benefit (DB) pension transfer, would have come across this acronym. A Cash Equivalent Transfer Value (CETV). All well and fine to know what the CETV is, but wouldn’t it be nice to know how it is calculated so that you can have a better understanding on it. In…
Do you have enough money for retirement?
One of the most common questions I receive in my practice, is that concerning retirement planning. For many of us, retirement seems a distant future and one which many people do not concern themselves with. Hopefully this will change that belief. It is safe to say that apart from your house, your pension would probably…
Who needs a financial advisor anyway?
We often surprisingly hear potential clients say that they can get independent financial advice from a friend or a self-taught financial commentator. But no matter how well-meaning their intentions are, unless they are an independent qualified financial adviser, you cannot be sure that you are getting the best possible advice. So we will say it…
The Importance of financial planning for individuals.
My dad used to tell me that two things in life are certain. Death, and taxes. The latter is something we (to some degree), can influence by adopting to live in more tax-favourable jurisdictions. The former certainty, is unavoidable, and it is this inherent fact of life where financial planning often comes to the fore.…
The Power of Compound Interest
Many Individuals are unfortunately ill-prepared for retirement, and it’s an unsettling prospect that so many citizens of this modern day world may not be able to support themselves in their golden years. However, the beauty of compound interest means that if you start saving from an early age, investing in your future doesn’t have to…
Peter Button Llb MSc DipFA 