MGM Advantage

Rental income from property In the UK we have had a long running love affair with property as an investment and, more recently, ‘buy to let’ has become increasingly popular. On the face of it, there are significant advantages to using ‘buy to let’ as a means of providing income in retirement. There is the [...]

Unit Trusts and Open-Ended Investment Companies (OEICs) are another way to provide a tax efficient income. Your money is put into a fund and pooled along with money from other investors. This pooled fund is then invested across many different investments by a fund manager. What’s the difference between a unit trust and an OEIC? [...]

Purchased life annuities can be a very effective way of providing income in retirement, but they suffer from the same disadvantages that all lifetime annuities suffer from: Once you’ve paid your money, you can’t get at it (other than the income payments you’re entitled to)…

Investment bonds are single premium savings contracts usually bought from an insurance company. That means you pay the insurance company a lump sum which they will invest on your behalf in the fu.nd(s) of your choice. The key attractions of these products for retirees are…

Individual Savings Accounts (ISAs) were introduced in April 1999 and replaced Peps and Tessas. They are a very effective way to minimise the tax you pay on your savings. There is no additional income tax or capital gains tax payable. That means you can draw an income from these products tax free. How much can [...]

How much risk should you take with your money? Ever wondered why street sellers often sell umbrellas and suntan lotion?  Few people, if any, will be looking for both items at the same time surely? Our canny street seller knows that when it’s raining it‘s easier to sell umbrellas, though harder to sell suntan lotion. [...]

National Savings and Investments (NS&I) have several attractions for investors: Your money is completely guaranteed.  Any money you pay in is guaranteed by HM Treasury. You can currently invest up to £35,760 tax free.  That’s right. £35,760 can be invested in tax free products guaranteed by the Government (April 2013).  If it sounds too good to be [...]

Active or passive funds? With a stocks and shares ISA and with unit trusts and OEICs, you can choose to invest your money in ‘actively’ managed funds or ‘passively’ managed funds. ‘Active’ funds are managed by a specialist investment manager or a team of specialists who, within certain limits, have the freedom to choose which [...]

What products should I consider? The assumption in this section is that you have savings and investments, outside of your pension savings, that you want to use to generate an income in retirement. If you’re looking at pure investment opportunities, or have significant amounts to invest, you should seek financial advice. What should I look [...]

Don’t run out of money too soon! With retirement often lasting 20-30 years, it’s important that you don’t run out of money. Fortunately, your State Pension will continue to be paid however long you live.  So too should any company or personal pensions you may have.  In contrast, your private savings could run out if [...]

How likely it is that you may need to access your funds from time to time for unexpected expenses? For example, housing repairs or perhaps even a son or daughter’s wedding…

Increasingly, people are retiring with part of their income in retirement generated from savings and investments they’ve built up outside their pension savings. Alternatively, they may have taken the tax free cash from their pension and are planning to invest some or all of this or they may have inherited wealth that they intend to use to boost their income in retirement.