Worth seeing an IFA?

[Deleted User]

xrjtg wrote: »

Ignoring the bonus, the certificates track the value of the Retail Prices Index. The RPI inflation figure for June is not relevant, but is roughly what you'd have earned so far had you bought a certificate a year ago.

You just beat me to editing my post.

Answer also found here:

Interest is added each year on the anniversary of the account being opened.
On the date interest is added at the end of each year, NS&I takes the RPI rate from two months previously. For example, if you opened the bond on 12 May 2011, you get interest added on 12 May 2012, but the RPI rate used is from March 2012.

IronWolf

Jegersmart wrote: »

I know hindsight is wonderful (I was in bonds for the last 3.5 years and made "only" 12.xx% per year for htose and even more before that) but the point is that if you do research and choose funds that are good at limiting downside at least historically you have a fairly good chance of choosing a fund that will outperform significantly - but not in certain 1 year periods of course - all I am saying is that telling people that 15 years is the minimum can be utter crap - but it does take some common sense to invest in equities and most other instruments and I wouldn't do so without doing some work myself. I still feel very strongly for the guy who was advised to invest in a FTSE tracker 14 years ago......

imho, dyor.

The thing is even to invest in funds or trackers you need to have a basic understanding of the markets you're getting into and how under/over-valued they are. The 1999 example is a good one, in that you would only have to look at basic P/E ratios for the FTSE to know it was very overvalued and a correction would happen eventually.

datostar

dunstonh wrote: »

I've seen that so many times over the years. They probably invested above their risk profile and without a clue what they were doing. Because of that, they will probably not invest again and suffer shortfall risk and inflation risk in future.

A former colleague of mine retired in August 1987 and sunk his pension commutation money (approx. £80,000) into a single Unit Trust. In October of that year along came the infamous Black Monday and his investment halved. He panicked and sold, crystallising his loss. 12 months later the unit price was back where it started.

He got absolutely everything wrong and had to seriously modify his retirement plans.

I think we're seeing something of this pattern now on the basis of a week or so's FTSE falls.

darkpool

jamesd wrote: »

Even medium risk investments should be making 7% plus inflation. You wouldn't necessarily expect much other than rebalancing initially from the IFA after the initial setup work because the amounts are low enough for it not to be worthwhile for you or the IFA. That would (should) change over time. Or you could pay a fee instead of commission and get it done whenever you like.

If you got 7% less 0.5% fees in investment returns you'd have £96,064 after ten years instead of £65,000. 7.5% is conservative, 7-9% plus inflation is more like it.

i fancy some of these investments that return 7-9% plus inflation. where about do i get them? the FTSE100 certainly hasnt done that since it's high in 1999.......

Lokolo

darkpool wrote: »

i fancy some of these investments that return 7-9% plus inflation. where about do i get them? the FTSE100 certainly hasnt done that since it's high in 1999.......

The FTSE100 is only a price tracking exchange so does not account for dividends.

And I doubt FTSE companies do offer 7-9%, but there will be places where this is viable.

darkpool

Lokolo wrote: »

The FTSE100 is only a price tracking exchange so does not account for dividends.

And I doubt FTSE companies do offer 7-9%, but there will be places where this is viable.

so if it's not ftse stocks where do you get inflation plus 7-9%?

Lokolo

darkpool wrote: »

so if it's not ftse stocks where do you get inflation plus 7-9%?

Emerging Markets, Smaller Companies etc.

darkpool

Lokolo wrote: »

Emerging Markets, Smaller Companies etc.

7 to 9% a year after inflation? i don't suppose you have any research to back your claims up?

fairleads

Lokolo wrote: »

Emerging Markets, Smaller Companies etc.

Could you be a little more specific please

Lokolo

darkpool wrote: »

7 to 9% a year after inflation? i don't suppose you have any research to back your claims up?

My own funds have averaged that, but only for last 3 years, obviously I don't expect to get it EVERY year, but so far so good eh!

I wouldn't expect 1.5% AMC and 3.5% inflation though. These values are at the high end.