Julian Penniston-Hill's i-account

SoNoble

I am married and 50 and have a range of small pension investments which add up to 75% of my income needs in retirement. My wife has better pension arrangements. I am looking to invest up to £20,000 in another pension arrangement, sometime in the next 2 years when I expect to retire, to provide a little bit more over the next 20 years (I have a limited life expectancy).

I wanted to know if anyone had any views on the i-account.

dunstonh

It's a guaranteed equity bond in disguise. Its a gimmick.

For example, it says no fund charges. It has no explicit charges as it doesnt invest into funds. However, it has implicit charges which you don't see. For example, where is the 3-4% per annum dividend income? There is none on this.

It says guaranteed to outperform stockmarket. Gimmick. Its guaranteed to outperform the FTSE100. That is not reflective of the stockmarket and any half decent (or even rather dull and poor) portfolio would have beaten that over the last 10 years. FTSE100 was 3314 10 years ago. Its currently 5689. The stockmarket part of this pension would have grown by 100.7% over 10 years (ie doubled). A UK Equity Income fund would have trebled in that time. 269.7%. Much of that on the back of dividends. A cautious managed portfolio would have beaten it. a balanced managed just under. Had you done it 5 years ago, the iaccount would have made nothing but most alternatives would be in profit.

As for house prices. Do you really expect them to go up like they have done in the past? They are barely affordable now and the scope of increase for the future is limited. People now need joint incomes and 40 year mortgages. The increases cannot go up beyond the affordability of what people can borrow.

These types of investment are there to appeal to the inexperienced investor. They package it in a way that looks good... no charges (true but a SPIN in the real position). Using house prices which have sky rocketed on past performance so look good on stats. Tech stocks sky rocketed as well and look where they are now. It tracks the FTSE100 on the stockmarket side which has been the weakest UK index for many years now and that is unlikely to change. Especially when you look at the weightings of it. The FTSE100 bit has no dividends paid and the property bit has no rental income paid.

Effectively, you would be investing £20k into just two areas which have weak potential for growth.

Julian_Penniston-Hill

So it's a gimmick is it!

The pension industry takes £5bn a year out of our fund in charges every year. Individuals only put £4.3bn a year in.

Pension fund performance has been, with a few notable exceptions, generally dire.

You say "It says guaranteed to outperform stockmarket. Gimmick. Its guaranteed to outperform the FTSE100. That is not reflective of the stockmarket and any half decent (or even rather dull and poor) portfolio would have beaten that over the last 10 years. FTSE100 was 3314 10 years ago. Its currently 5689. The stockmarket part of this pension would have grown by 100.7% over 10 years. (ie doubled)"

That is not a "Gimmick" and you are wrong and misleading people. The average Balanced Managed pension fund has returned 75% over the last ten years (and that's before pension charges).

By the way, the iaccount would have returned 146% interest over this period.

Also, just because the FTSE pays a dividend, don't try and infer to those who listen to you that an investor will receive it. After tax and charges it is rendered virtually worthless.

And that is of course assuming the stock matket is the best home for your money at any given time.

You also say "Had you done it 5 years ago, the iaccount would have made nothing but most alternatives would be in profit."

For the record, you are wrong and misleading people again. Over the last five years house prices have risen by 98% and therefore the property exposure of theiaccount would have given you 137.2% on this half of your money. The iaccount would actually be up over 70% over the last five years.

The FTSE All Share achieved has only 20.51% over this time (to March 2001 before it fell again) and the average Balanced Managed pension fund has turned in a feeble 11% over this period (again, before pension charges).

So by diversifing between two non-corolated asset classes your can achieve a high and consistant level of returns. The iaccount is a long term investment, and over the long term both house prices and the stock market have always risen. To suggest that either will not contiue to rise over the long term is quite baffling.

Also, with theiaccount there is no capital risk, something that I'm sure will appeal too many.

I find it sadly typical that an IFA will bend over backwards to justify why pooled investment schemes are always the best for their clients.

Oh sorry, silly me, they pay commission don't they!?

And before you start, yes everyone has a right to earn their living. You, as a salesman, get paid a commission for selling something, like an estate agent who is paid a commission for selling a house.

However, an estate agent does not call himself a 'independent property adviser' and pretend that he offers buyers impartial advice on the best home for their needs. Ask one, they'll tell you they sell houses - on behalf of the person that pays them a commission. They will also not mind admiting to knocking a property that they can't earn a commission on and telling you they one they can sell you is better, it's their job.

However, even an estate agent would not have the gaul to charge one half of a percent a year of the value of you house every year that you live in it (i.e. like IFA renewal/trail commission).

Stating what you must know are lies about what the iaccount would have returned over the last five years smacks of desperation. But knocking a capital secure, tax free alternative to pensions just because it doesn't pay you a commission is simply irrisponsible and dangerous.

Finally, please keep up the good work in showing the public your bias towards poor value products that pay you a commission, as it really is a great help to my business.

And to any other readers of this thread, if theiaccount does not sound up your street (but I urge you to at least look before you dismiss it) try the Intelligent SIPP, it uses the IFA renewal commission to pay all of the SIPP costs so you pay no more than just holding the Unit Trust.

You can also have commission free insurance (saving up to a third of your premiums) and commission free medical cover (half of the first year's premiums as cash back) and indeed receive the commission back on any other financial product. You only pay the £35 annual fee when you need to use us (i.e. if your just want to take out a commission free life insurance policy you only need to be a member when you take it out), and we guarantee that if we can't save you more than £35 we will refund the difference.

Julian

dunstonh

Pension fund performance has been, with a few notable exceptions, generally dire.

That is the sort of response you expect from a investment novice. Pensions dont lose or make money. Its the investments within the portfolio that do that. With exactly the same funds available on pensions as there is with ISAs, unit trusts, oeics etc, that sort of statement is misleading and inaccurate.

The way the money is invested and where is the most common problem and balanced managed funds have been overused in this respect. However, that doesnt make the pensions bad. It makes past performance choice of funds bad. Most pension plans have sufficient funds to utilise and build a proper investment portfolio.

That is not a "Gimmick" and you are wrong and misleading people. The average Balanced Managed pension fund has returned 75% over the last ten years (and that's before pension charges).

You will find little support for a GEB style investment on these forums and your typical "pick a poor index" to compare against is what you expect from the companies marketing these types of products.

Also, just because the FTSE pays a dividend, don't try and infer to those who listen to you that an investor will receive it. After tax and charges it is rendered virtually worthless.

So, where are your dividends going then? They arent going to those investing in your packaged product.

For the record, you are wrong and misleading people again. Over the last five years house prices have risen by 98% and therefore the property exposure of theiaccount would have given you 137.2% on this half of your money. The iaccount would actually be up over 70% over the last five years.

Im not misleading anyone. You are by placing focus on the property side when i was clearly discussing the FTSE100 side. How much has someone investing in the FTSE100 5 years ago made now on this style of investment? VIRTUALLY NOTHING. May 2001 the index was 5796. It was 5833 on Friday.

I find it sadly typical that an IFA will bend ...snip all the anti IFA rubbish

I work on fee basis so all your commission bias twaddle is pointless. If I was to use your product, you may not pay me but my client would and I have no faith in these products so won't recommend them.

You are relying on past peformance of the residential property sector to boost your published returns. You are tracking just two sectors. Thats hardly diversified and past performance is hardly a good indicator of future returns.

As I said in my post above, you are spinning the facts to make your product look good. A very common approach to these GEB style products.

And to any other readers of this thread, if theiaccount does not sound up your street (but I urge you to at least look before you dismiss it) try the Intelligent SIPP, it uses the IFA renewal commission to pay all of the SIPP costs so you pay no more than just holding the Unit Trust.

Or you can use the HL Sipp with no charges on the SIPP wrapper or a hybrid SIPP which can equal that or even be cheaper.

I may be wrong but this thread seems like a set up to try and promote your product.

payless

In the FAQs

Do you offer the usual broker services?

A. Yes we do. Please call 0870 XXXXXXXX

so doesa this mean you are IFA as well??? ( advice/ commission which is "normal" ) ... plus one that likes 0870 numbers??

payless

New user SoNoble started this thread .. iaccount Trustees are

GP Noble Trustees ... coincidence??

Julian_Penniston-Hill

Intelligent Money is authorised and regualted as an IFA firm, but does not act in this capacity. This is how we can receive commissions to pass back to our members.

We do not however give advice and very obviously don't earn commission (or whole purpose is to pass this back to the public.

<phone number removed Forum Team 2>

Normal broker services means that you can purchase any product from us just as with any other broker. The commission rebating applies to anything you buy from us

Julian_Penniston-Hill

payless wrote:

New user SoNoble started this thread .. iaccount Trustees are

GP Noble Trustees ... coincidence??

You are quite right... Have spoke to our Trustees and they say;

It isn't them because they are a) to boring to have thought of it, and b) not stupid enough to use their company name if they were going to do so!

payless

Julian_Penniston-Hill wrote:

The 0870 11 66 11 7 is a Low-Call number

Yeah , !!!

Julian_Penniston-Hill

payless wrote:

In fairness they seem to be offering a 100% commission rebate on mortgages ( £35 fee pa , which I guess you can cancel after getting the commission back ) which seems very conmpetitive for anyone wanting a non advised route ... hope they can deal with the volume

Our £35 fee covers EVERYTHING we offer, commission rebating, insurance, healthcare, SIPP, iaccount, the lot.

And yes, you only have to pay it when you use us.

As for volumes, we have been doing this for nearly 3 years now and not had a problem yet (well, except when we launched and were knocked off our feet!).

payless

Julian_Penniston-Hill wrote:

Intelligent Money is authorised and regualted as an IFA firm, but does not act in this capacity.

Is it not true that to hold authorsition as an IFA you must be carrying out that activity ?