exceptional property investments
TRANSCRIPT
Planning for a Richer Retirement!
Legal Disclaimer & Warning
This presentation contains information only which is the personal opinion of Rod Thomas. It is not advice, a recommendation or invitation to invest. Projections in this presentation are approximate and based on the criteria specified which may or may not turn out to be accurate.
Avantis Wealth Ltd is not licensed or regulated by the Financial Conduct Authority and does not provide financial or pension advice. We strongly recommend that you seek appropriate professional advice before entering into any contract.
The value of any investment can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.
Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the Financial Conduct Authority or covered by the Financial Services Compensation Scheme. You will not have access to the Financial Ombudsman Service.
Personal information in any pension review is a matter of record and is provided by an IFA from our panel, who are regulated by the Financial Conduct Authority. Any requirement for pension or investment advice will be passed to a regulated IFA.
Access to some investments is restricted to certain categories of investor as determined by FCA regulations in respect of NRRI (Non readily realisable securities). It will be necessary to ascertain your classification prior to providing an investment memorandum for these investments.
Agenda• Pension failure• Improving pension performance• Property as your pension• F.R.E.S.H investment strategy• Pension freedoms• Taking control – improving the outcome• Next steps
You are not alone!So many stories about
retirement and income crisis…Why?
“Too poor to retire: The over-55s with no pension, no savings, just massive debts”
Investment failure
Asset allocation for many pension funds
Equities (Shares)
Sam Smith, CEO, Finncap: Rollercoaster year will be driven by uncertainties6,800 FTSE prediction
Shares – Nikkei 225
Fixed interest securities
Best rates!*120 day notice account – 1.75%
3 year cash ISA – 2.20%10 year Government Gilts – 1.95%
* May 2015
Fees & charges
Fees & charges
80%
Life expectancy
We are living longer. If you retire at 65…▸ Man: 83 year = 18 years in retirement
▸ Woman: 86 years = 21 years in retirement
Annuity rates
Joint life, RPI, 5 year guarantee – 2.8%!£100,000 buys you £233
monthly
Annuity = No fund!Whatever the value…
£50,000£200,000
£1,000,000‘Lost’ to insurance company
InflationTime 20 yearsInflation rate 3%Money now £100Money value in 20 years
£55
What happened to your pension?
Review pension report
Keys for a brighter future?
Step OneImprove
investment (& therefore pension)
performance
Step TwoFlexible pension
scheme
Fixed Interest
Property
Alternatives
Equities / Funds
Reward
Risk
Four investment classes
Why property investment?
Property – many reasons• Security
• Lack of volatility• Certainty
• Non-correlated assets
• Diversification• Compound growth
• High returns
Pension availability for selected investments
Potentially excellent returns• 8% to 12% net
• Don’t confuse with ‘gross’
What Property Investment?
Sector?Residential or Commercial…
Shops, Offices, Warehouses, Factories, Student property, Self-storage
Serviced offices, Garages, Surgeries Car parks, Burial plots, Waste recycling plantsPower stations, Hotels, Conference facilities
Resorts, Care homes
Participation?Direct or Indirect…
Indirect…Lend money alongside other investors. Collectively hold
security over assetsLoan Note or Bond
Direct…Own Freehold or Leasehold title
Full title or fractional
What is Avantis Wealth focus?
Residential Commercial
Direct Indirect
F.R.E.S.H Investment strategy
Residential - direct
Residential – indirectCommercial – directCommercial - indirect
Fixed returns X Regular, high income X Exit predefined X Security Hand’s off X Typically 8% to 12% net pa
Investment Portfolio• Typically 15-20 investments available• Different objectives / attitude to risk /
sectors / locations• Some investments restricted to qualifying
investors
Information only, not an invitation to investPension investors – referred to IFA
Historic Building Restoration
Europe
• 10% to 12% net • 2 – 5 years
• From £10,000
Self-Storage UK
8% - 12% net (+ capital growth)6 years
From £5,000
Car Parking space - Dubai
• 8.58% average - income guaranteed• Buy 20% BMV - potential capital growth
• Exit any time• £27,000
Growth through compound interest
Step OneImprove
investment performance
Step TwoRight investment
vehicle (pension?)
Flexible pension schemes
SIPP, SSAS, QROPS, Group Pension Plan
(not all are suitable!)
Pension Freedoms
New freedoms – really?
Must buy an
annuityLimited
investments
No flexi-access
drawdown
Can’t access cash
Annuities are dead (almost)
Long live drawdown!
Own & control 100% of fund (DC schemes)
Transfer Final Salary scheme to defined
contribution
Except non-funded Government
schemeStatutory right to
transfer
Own your fund (drawdown only)
•Withdraw all•Withdraw some now• Rainy day fund• Supplement income over time• Leave as Legacy•WARNING – TAX CONSEQUENCES
Legacy for generations
Exempt from IHT!
What does your future look like?
Potential increase in income and value of
fund?
Next Steps
Benefits of a new approach
Take control Wider investment options Higher growth before retirement Higher income after retirement Ownership of fund for you and/or legacy for
generations
What future will you choose?
