![]() ![]() The first places you should generally withdraw from are your taxable brokerage accounts-your least tax-efficient accounts subject to capital gains and dividend taxes. Read on to understand a few general guidelines for retirement withdrawals. That said, in addition to working with an expert, it’s also important to know why you’re doing what you’re doing. We aim to maximize growth and minimize taxes. ![]() We draw on the right accounts at the right times. īecause financial advisors help you build a plan and stick to it. In fact, according to Vanguard, retirees working with an advisor can expect around a 3% performance increase per year. ![]() “Well, we can help turn your portfolio into a paycheck,” is typically our answer. Fortunately, strategic income planning not only brings retirees comfort and peace of mind, but it can also result in more assets. When we meet with near-retirees there is often a single question that cuts right through any discussion on economic outlook or investment strategy: “How will I replace my monthly paycheck, so I can pay all my bills in retirement?” We may record and monitor calls.Which Accounts You Should Draw Down First in Retirement? You can also apply for a drawdown by calling us on 03330 048444. Step 5:- You’ll have access to the money you asked for and we’ll keep you updated through your annual statement of any drawdowns taken and your remaining Drawdown Facility. Step 4:- When we receive your signed Offer of Loan we’ll send you a confirmation letter and pay the drawdown amount into your bank account. Additional guidance and support can be found on How do I sign a DocuSign. You will be able to sign your Offer of Loan online via a secure platform. If this is a joint account you’ll both need to sign. Step 3: - When you receive the Offer of Loan, please check all the details, sign the document and return to us. If we need further details we’ll call you back within two working days to discuss your application. If everything is clear and acceptable to us, we'll send you an Offer of Loan for the drawdown. Step 2:- When you’ve submitted the drawdown application, we’ll review the information you’ve provided. If this is a joint account you need to complete it together. This will take about ten minutes to complete, you’ll need to share your email address and have the required information to complete the application. Step 1:- Complete the online application form. You can apply for a drawdown in 5 simple steps The simplest way to request a drawdown is online. ![]() If you apply online for a drawdown, we’ll send the Offer of Loan to you through DocuSign (our secure email portal). If you have less than £1,000 remaining in your Drawdown Facility you will need to call us on 03330 048444. The minimum amount you can drawdown online is £1,000.Your Drawdown Facility will reduce by the amount you drawdown so there will be less available for your future needs.As you'll pay compound interest from the day we pay the money to you. You should only release what you need at the time from your Drawdown Facility.We’ll confirm the interest rate in the Offer of Loan we send you for the drawdown. The rate will depend on the interest rates available for your lifetime mortgage, on the date you apply for the drawdown. A different interest rate may apply to each drawdown amount you take and may be higher or lower than the interest rate on your initial loan.When you’re taking more money from your Drawdown Facility there’s a few things to consider, and you may want to go back to your financial adviser for guidance. Remember, the higher the interest rate, the greater the affect of roll up interest over time. Your lifetime mortgage is designed to run for the rest of your lifetime which could be longer or shorter than this example meaning you could owe more or less. Remember, these are only examples and show what would happen over 20 years. They’re based on a property value of £500,000 a loan of £100,000 and assume that house prices will not grow over the 20 years. The illustrations below show how different interest rates might affect you if you borrowed over 20 years. This is also known as ‘roll up interest’ or ‘compound interest’. This means that interest is charged on your loan amount plus any interest already added. If you didn’t choose to pay Monthly Interest Payments on your lifetime mortgage or have stopped making Monthly Interest Payments, the interest will be added to your lifetime mortgage each month and ‘rolled up’. However, the amount you owe can increase quickly over time and the higher the interest rate on your loan, the faster this will happen. The interest rate on your initial loan is fixed for life meaning it won’t change even if rates fall in the future. ![]()
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