A Pension In Only 10 Years by Judith Morgan

When I first met Nicola, one of the marketing messages the Money Gym was using to attract new clients was about worrying about our old age.   Would we have a pension?

I wasn’t worried about my old age, I already KNEW I wouldn’t have a pension and since I had left it too late,  I KNEW I would have to work till I dropped!

So my plan at that time was all around creating work I would love to do all day long, work I could do as I got older, work where I managed others doing it all for me; businesses to love.

Obviously, that’s changed somewhat over my years with the Money Gym as after a while I was able to find ways to invest in UK property as well and I thought THAT would be my pension.

However, now a much better and faster way has come along, and it’s called RED.   It’s still property, but only loosely.   And it’s so ingenious, I wish I had thought of it.

If you were at our Property Extravaganza on 21st March, you will have seen RED launch that day and, if you are anything like me, you may even have been on the edge of your seat ever since.

RED took a while to get their act together, compliance issues mainly, something an entrepreneur like me doesn’t care to concern herself with.   I just wanted to know when could I have it and when could our clients have it.

And I have been holding those clients at bay ever since, chomping at the bit they are, waiting to hear more detail.

Finally, RED have launched their website, are sending me brochures shortly, I have order forms at last and I’ve been for more product training in Lincoln, so it looks like we are finally ready to rock and roll.

I am going to be sharing a few ideas here over the summer about how you might get into RED and what you might expect to achieve from it (there are so many different angles to this), starting with A Pension in 10 Years.

Firstly I’d like to talk directly to those of you who do have pensions – either personal pensions or stakeholder pensions (we can’t do occupational pensions yet, but watch this space).
Lots of us have got these little bits of pensions all over the place, perhaps you started one once but haven’t paid much into lately for lots of reasons like it’s disappointing performance or we taught you how to use your cash better, or simply that you couldn’t afford it.

Some of our clients have one or two pensions from previous jobs lying around somewhere and are surprised and delighted to discover that the fund is enough to do something really exciting with now, like Harlequin or Red.

But overall, your sense is probably that your pension won’t keep  you in your old age, at least not in the style to which you have become accustomed over the years.   No wonder OAPs have Spam and Jammy Dodgers in their shopping trolleys, that’s all they can afford.

And If you look at the annual statements at all, it’s just to file them in disgust as the sum is you can expect to receive is so paltry as to be not interesting in the least.

The first good news is that you can round up all those little bits of money and transfer them into a SIPP (self invested personal pension) which gives you the chance to do something really meaningful with the money now.

It gives you the chance to take control of that money and how it is invested and put it into something which will bring you a much greater return than the fund managers have been achieving for you, something which is more likely to pay for champagne and caviar, at least on high days and holidays.   All those little bits of pensions are like FREE money to invest in RED and other things like commercial property, stocks and shares and so on.

The RED product is designed to turn an investment of only £25k (or more) into a really great pension within 10 years.   In fact it is designed to turn your £25k into £220k GUARANTEED, plus an annual income of £50,000.   Yes, that’s right, £25k in one lump sum now turns into both those things, not only a £50K per annum income but also a pot  with a capital value guaranteed to be worth a minimum of £220,000, possibly a lot more than that depending on the growth in international property markets over the upcoming decade.   WOW!

I have asked my IFA what I would have to contribute to a pension in order to achieve £50k in 10 years time and the answer is a very unaffordable £1200 a month x 10 years = £144,000.   And even then I could only take a lump sum of £55k once plus an annual pension of just £10k.   If I wanted to draw £50k per annum as I can with RED from only £25k in 10 years time, I would need to create a pot of £850,000 which just isn’t going to happen to me at this late stage of life, I don’t know about you?

And lastly, the other vital thing to remember about orthodox pensions is that the annuity dies with you.   But with a SIPP, as my IFA says: “it provides the ability to produce higher income, better options on death of client and an asset that can be passed onto estate… and can be started at low levels due to fabulous RED product”.   Say no more, where do I sign?

I have emailed all the clients on our waiting list this week.   If you were not on that list and you would like to hear more about RED or if this is the first time you are hearing about RED, do contact me judith[at]themoneygym.com to hear more about how both you and I are now going to be able to afford to retire after all – and in only 10 years.

Next week’s instalment – how RED can create 10 years’ holidays for free, plus your original stake back AND a profit on sale.   This story just keeps on getting better and better.