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  #41  
Old 06.07.2012, 00:03
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Re: QROPS & offshore investment minefield

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Buy high is your motto then?
Well i cant see them falling in next 12 months.
What would you have choosen
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  #42  
Old 06.07.2012, 00:16
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Re: QROPS & offshore investment minefield

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Well i cant see them falling in next 12 months.
What would you have choosen
I wouldn't touch UK property or global bonds with a barge pole, not keen on high income UK stocks either.

No idea why you are looking at valuations in GBP, people here are living in CH, The GBP has lost 40% of value over the 5 years, makes your great performing stocks look very sick don't you think?
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  #43  
Old 06.07.2012, 00:32
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Re: QROPS & offshore investment minefield

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I wouldn't touch UK property or global bonds with a barge pole, not keen on high income UK stocks either.

No idea why you are looking at valuations in GBP, people here are living in CH, The GBP has lost 40% of value over the 5 years, makes your great performing stocks look very sick don't you think?
As i was going as i was picking the funds for myself, and my pension is in Sterling. And as i wont be touching my pension until im 55 i think it will increase in value by then.

The Coral fund is fantastic, they are launching a Australian version soon which should also perform great.
But the funds have been performing
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  #44  
Old 03.10.2012, 16:25
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Re: QROPS & offshore investment minefield

Hello everyone, I had a quick question about QROPS, as my wife and I have been receiving conflicting advice. We both have local government pension schemes, having worked for the local council for more than 20 years each. Last year we asked them if we could transfer them to a QROPS, and they said no.

We have had different advice from so called QROPS experts and IFAs, who say different things. We're in our late 50's and been living abroad for 7 years, no intention to go back to the UK.

But can anyone point us in the direction of a definitive answer re local govt pensions - a government or official website? Lots of these so called QROPS advice sites say that you can,, but don't back it up with hard evidence - it's driving us crazy!!!!

Thanks!
Mike
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  #45  
Old 03.10.2012, 16:39
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Re: QROPS & offshore investment minefield

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Hello everyone, I had a quick question about QROPS, as my wife and I have been receiving conflicting advice. We both have local government pension schemes, having worked for the local council for more than 20 years each. Last year we asked them if we could transfer them to a QROPS, and they said no.

We have had different advice from so called QROPS experts and IFAs, who say different things. We're in our late 50's and been living abroad for 7 years, no intention to go back to the UK.

But can anyone point us in the direction of a definitive answer re local govt pensions - a government or official website? Lots of these so called QROPS advice sites say that you can,, but don't back it up with hard evidence - it's driving us crazy!!!!

Thanks!
Mike
Why would anyone give up a guaranteed index linked pension? The risk is bourne by the local authority not you! It's probably possible but really really dumb, so they wont let you!
As you can already draw the pension what possible benefit would QROPS give you?
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  #46  
Old 03.10.2012, 16:55
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Re: QROPS & offshore investment minefield

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Why would anyone give up a guaranteed index linked pension? The risk is bourne by the local authority not you! It's probably possible but really really dumb, so they wont let you!
As you can already draw the pension what possible benefit would QROPS give you?
The reasons are irrelevant, so it's somewhat crass to suggest it is dumb without knowing the full facts. But if you must know, the main reason is IHT planning, which is currently a crucial issue, given certain medical issues.

And I am fully aware that any "risk" is borne by the LA.

Just some friendly advice, or a pointer to a reliable source (and not some adviser's "Expert" QROPS website) is all I was asking for.

Thanks.
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  #47  
Old 03.10.2012, 17:06
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Re: QROPS & offshore investment minefield

Sorry to hear that. I think you need IHT planning advice first and foremost. As UK IHT is based on your worldwide assets and domicile not residence I also do not see the immediate benefit of the QROPS.
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  #48  
Old 03.10.2012, 17:09
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Re: QROPS & offshore investment minefield

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The reasons are irrelevant, so it's somewhat crass to suggest it is dumb without knowing the full facts.
Based on the info you provided Fatman gave a perfectly logical answer. What seems a bit crass is coming for free advice and giving partial facts then being unhappy at the simplest response based on the facts you chose to give.
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  #49  
Old 03.10.2012, 17:11
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Re: QROPS & offshore investment minefield

FSA warning about pension release schemes
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The firms may offer to do one or all of the following for you:

- To transfer your existing personal pension plan to a Qualifying Registered Overseas Pension Scheme (QROPS) or overseas pension structure to avoid you paying UK tax....
- To transfer your existing pension to an alternative provider that will arrange for the money to be invested overseas, such as in property abroad. By doing this, the provider may claim that investing overseas is ‘SIPP compliant’, meaning you won’t have to pay tax on the investment....

Using the services of these firms may seem appealing when you need money now. However, there are high risks involved:...

Making any changes to your pension arrangements is high risk. We encourage you to always use FSA authorised firms to provide your personal pension plan, give you advice on and help you with your pension...
For the advice to be covered by the FSA, it has to be provided in the UK by a firm/individual on the FSA register (i.e. not by a firm located overseas, even if it has an FSA-authorised UK branch). Some of these "QROPS specialists" will say what it takes to get you to transfer the money out of the UK and into a place where they can get their hands on it. They'll happily use the "tax efficiency" argument as bait, but it won't bother them if you pay tax.
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  #50  
Old 03.10.2012, 17:50
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Re: QROPS & offshore investment minefield

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, the main reason is IHT planning, which is currently a crucial issue, given certain medical issues.

And I am fully aware that any "risk" is borne by the LA.
.
The IHT bullshit!
A pension fund is held in trust & does not form part of the estate in any case.......so it's not liable to IHT. You obviousely got great advice from your advisor.
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  #51  
Old 03.10.2012, 18:33
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Re: QROPS & offshore investment minefield

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The IHT bullshit!
A pension fund is held in trust & does not form part of the estate in any case.......so it's not liable to IHT. You obviousely got great advice from your advisor.

Trusts are not always recognised in some countries I.E Spain
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  #52  
Old 03.10.2012, 18:42
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Re: QROPS & offshore investment minefield

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Trusts are not always recognised in some countries I.E Spain
I suspect the Spanish government would have to accept that a Local Authority pension fund, is not the property of a single person, in any case it's almost certanly 'insolvent'.
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  #53  
Old 05.10.2012, 14:55
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Re: QROPS & offshore investment minefield

All to the point, the OP needs to get some proper advice from a qualified professional with whom OP has shared all of his circumstances.
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  #54  
Old 05.10.2012, 14:56
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Re: QROPS & offshore investment minefield

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I suspect the Spanish government would have to accept that a Local Authority pension fund, is not the property of a single person, in any case it's almost certanly 'insolvent'.
Im pretty certain Spain and the UK will have a reciprocal treaty that covers such topics in the case of regulated pension funds.
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  #55  
Old 05.10.2012, 18:20
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Re: QROPS & offshore investment minefield

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Im pretty certain Spain and the UK will have a reciprocal treaty that covers such topics in the case of regulated pension funds.
Well a LA authority pension will not have a cash value, the OP's interest is just a liability to the fund.

The Qualified professional is more likely to be someone at the fund that says a straight 'NO' rather any commission grabbing slimeball who wants to earn some money.
I suspect the reason why the LA says no, is the transfer will NEVER be 'best' advice transfering from a guaranteed pension scheme.
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  #56  
Old 11.10.2012, 22:21
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Re: QROPS & offshore investment minefield

I just wanted to chime in with some advice for the chap who wanted to move his Local Authority pension.
First you need to establish exactly what the defined benefits are. Some benefits are lost as soon as you leave the employer. You will most likely have to ask your former employer for a written statement showing what you will be entitled to in the future and at what exact age you can begin taking your pension.
Second if you are serious about moving it you should get a transfer valuation analysis done (TVA). This is a calculation which allows you to compare the benefits of your frozen pension with the alternatives. It may also give you a critical yield, which indicates how fast an alternative scheme would have to grow to match the benefits in your old pension.
This can be a costly exercise and if you decided not to request a TVA and were still to go ahead with the transfer then any accepting scheme would have to request you wrote a letter accepting that you are giving up your defined benefits and that you know the risks involved of moving out of your former scheme.
This is not something to take lightly and i would suggest you do more reading on the subject and even follow some of the discussions which occur on the LinkedIn QROPS discussion group. Yes there is some nonsense on there but you could post the question and watch the sparks fly!
As i side note i do know via a good friend that an HMRC employee posted a fake story on that group asking about pension busting (which of course is illegal) scheme and there was a flood of replies with very few people actually clicking through the mans profile and noticing he worked for the very group who was looking for those pension busting proponents......hilarious.

Anyhow, good luck with your research and any more questions please post away.

Cheers
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