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Has my IFA been a little bit lazy.
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greenface
Posts: 4,871 Forumite
Hi there
While trawling through all the different posts trying to make some headway as to best way to protect my money and hopefully make a few bob too. I have read my own policys set out by my IFA last year and i am unsure about its structure. One recommended to me is Invesco Perpetual's Distribution Accumulation fund and the other being Axa's Property Fund .
On the Invesco it says "100 policies bought" do you know if this means invested in 100 different policies or invested in the same policy x100.
I am aware that it hasnt been the greatest year and i am in it for the duration 10 years plus.
I was wondering if my IFA could have spead my money a bit thinner and not all "eggs in one basket" If thats what i have read.
My risk profile is cautious and it is a serious lot of dosh.
Thanks for any help and replies. :beer:
While trawling through all the different posts trying to make some headway as to best way to protect my money and hopefully make a few bob too. I have read my own policys set out by my IFA last year and i am unsure about its structure. One recommended to me is Invesco Perpetual's Distribution Accumulation fund and the other being Axa's Property Fund .
On the Invesco it says "100 policies bought" do you know if this means invested in 100 different policies or invested in the same policy x100.
I am aware that it hasnt been the greatest year and i am in it for the duration 10 years plus.
I was wondering if my IFA could have spead my money a bit thinner and not all "eggs in one basket" If thats what i have read.
My risk profile is cautious and it is a serious lot of dosh.
Thanks for any help and replies. :beer:
:cool: hard as nails on the internet . wimp in the real world :cool:
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On the Invesco it says "100 policies bought" do you know if this means invested in 100 different policies or invested in the same policy x100.
Investment bonds are usually segmented in to multiple policies for tax reasons. However, I wasnt aware Invesco operated an investment bond. AXA do though.I was wondering if my IFA could have spead my money a bit thinner and not all "eggs in one basket" If thats what i have read.
We dont know anything about your risk profile (in any real detail as cautious doesnt mean much unless placed in context), aims or the amounts involved. If an investment bond was recommended then you should have an ISA as well as you always use an ISA first. So, there is no doubt other funds there as well.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the reply Dunstonh.
I think i got the Invesco & Axa Comercial property mixed around :rolleyes:
We have 28K (two people two years 7K each year) in ISAs in the same two investments above and 300K split equally outside the ISA between Invesco and Axa.
Dont need the money for a few years we hope 20 years until retirement . We have children one will need looking after when we are gone:A mortgage paid no plans to move dont need to earn too much and can get by have a smallish amount of cash in the bank (less than 5% of total) and about 10% of total loaned out.
Aims are to protect what we have and fill up ISAs for about 12+ years and see what the future holds.
Thanks for explaining the segmented for tax reasons.
hope that helps:beer::cool: hard as nails on the internet . wimp in the real world :cool:0 -
Well I'm certainly no expert but do I understand correctly? Over £300K invested in JUST 2 funds?We have 28K (two people two years 7K each year) in ISAs in the same two investments above and 300K split equally outside the ISA between Invesco and Axa.
The words "eggs in one basket" DO spring to mind - and with 300,000 eggs I'd be expecting a damn sight more than two baskets, at least double digits and probably more. I'd have thought it demanded a very well diversified portfolio of funds spread across the various markets and asset classes but overall reflecting your cautious wishes.
Has your IFA been a little lazy? Bone F*****g idle, more like![in my inexpert opinion!]
Are you sure it was an IFA - rather than an insurance co or bank tied rep?
As I say I'm not an expert but I would be very interested in dunstonh's view.0 -
300k in 2 funds? i spread clients ISAs 4 ways0
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did IFA warn you that you could get locked in the property fund like you have been?0
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300k in two funds of that type is not just lazy but basically incompetent. Not enough to complain about but it is the barest minimum possible service and advice you could have got. Its on par with a bank or building society adviser.
£300k would be 10 funds minimum. If you are medium to higher risk even more.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Well I'm certainly no expert but do I understand correctly? Over £300K invested in JUST 2 funds?
The words "eggs in one basket" DO spring to mind - and with 300,000 eggs I'd be expecting a damn sight more than two baskets, at least double digits and probably more. I'd have thought it demanded a very well diversified portfolio of funds spread across the various markets and asset classes but overall reflecting your cautious wishes.
Has your IFA been a little lazy? Bone F*****g idle, more like![in my inexpert opinion!]
Are you sure it was an IFA - rather than an insurance co or bank tied rep?
As I say I'm not an expert but I would be very interested in dunstonh's view.
Thanks for the comments
I serched and reserched for a IFA without hurry although i didnt know what to do when i found one My IFA is a IFA and the company is registered with unbiased.com and are a large company.
TBeckett100did IFA warn you that you could get locked in the property fund like you have been?
no
but havent thought about wanting it unlocked didnt want to chase the stock market every morning and prepared to go the distance with it
TBeckett100300k in 2 funds? i spread clients ISAs 4 ways
I dont think they are bad funds are they ? // expert advice please //
dunstonh300k in two funds of that type is not just lazy but basically incompetent. Not enough to complain about but it is the barest minimum possible service and advice you could have got. Its on par with a bank or building society adviser.
£300k would be 10 funds minimum. If you are medium to higher risk even more.
I value all your all advice given .We are due for a pow wow in the summer was explained in a way that if one fund dipped the other would keep going well as commercial property wasnt up and down same as stocks but works its own way. So both funds wouldnt be down together.
am i being a bit casual and should i be knocking down doors what should/could/can i do
thanks in advance:cool: hard as nails on the internet . wimp in the real world :cool:0 -
My IFA is a IFA and the company is registered with unbiased.com and are a large company.
99% of IFAs are on unbiased. It is no measure of quality. It is just a database of advisers. Using a large company may be the problem. Large companies tend to run as salesforces. You then get that salesforce mentality and good advisers arent typically going to work for a salesforce(generalisation alert). Mainly as the salesforce will be on targets and incentive based and the remuneration will not be as good as a smaller firm (where the good advisers are likely to be directors or partners).
The problem with two funds is that you are very limited in where you are invested. One of the areas (property) has had a poor 12 months and future outlook from this point on is not expected to be too bad. However, Property is a sector that you would typically expect to have no more than 25% at tops but probably closer to 10% or lower. It provides diversification but once you go heavy in it you lose diversification. You also run the risk of not being able to switch out during bad times (as is currently the case).am i being a bit casual and should i be knocking down doors what should/could/can i do
Personally, I am angry that there are still advisers out there that act this way. The FSA's RDR (proposed to start in 2009) will hopefully get rid of many of these as they really shouldnt be giving advice as IFAs but go back to being tied agents.
The problem for you is that whilst the recommendation is not professional, it probably isnt something you can complain about and succeed. I would seriously consider getting another IFA to look into it. They may be able to sort something out with some fund switches and alter it to some structured portfolio and not a hit and hope that it currently is.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
lazy thinking was using property and shares as an historic see saw. I for saw months ago the property problems and pulled everyone out. You are trapped in an asset class now where anything can happen over the next 6 months. I couldnt sleep if my clients eggs were in one basket. with 300k, i would have put some exposure into emerging markets and gold and still kept medium risk.0
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thanks for the replys i mentioned unbiast because someone questioned wether IFA was IFA. Odd enough got first letter(since last july) this morning explaining about the property "lock in" and asked if i would like to move the pow wow closer to have a talk.
Me is now wonderin if they is readin wot i is typin:o:eek: I think i will accept the offer as i am more aware than a year ago :cool: hard as nails on the internet . wimp in the real world :cool:0
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