We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Looking for an IFA - I will pay 5% maybe 10%!
Comments
-
Wait, you mean paying for active management won't get me out of the market before it drops?
Some collective investments have proved capable of avoiding large drawdowns through several cycles but they don't tend to have trendy names or fancy advertising, and IFAs rarely (if ever?) recommend them.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Some collective investments have proved capable of avoiding large drawdowns through several cycles but they don't tend to have trendy names or fancy advertising, and IFAs rarely (if ever?) recommend them.
what are these investments? they sound very good, by any chance do they not pay fees to IFAs?0 -
what are these investments? they sound very good, by any chance do they not pay fees to IFAs?
Investment Trusts, and no. Of course, ITs vary almost as much as funds, and you have the same choices regards growth, income, capital preservation, and territory spread.
I'm currently favouring capital preservation ITs such a Personal Assets, and I've been blown away by how well they have handled both 2008 and the latest madness. I have also done very well with RIT Capital, but they have dropped 7% over recent months, though a fair bit of this is due to them now being on a discount (or they were last time I checked.)
As I move towards retirement, I'll probably slowly move towards income ITs (alongside cash, bonds and some equity holdings) as many of these have a multi-decade record of increasing dividends every year.
Of course, with ITs you have to learn to live without 1.5% to 2% total expense ratios (which aren't the total expense, but let's not go there!), the trendy names, and the habit of quietly killing off any fund that under performs.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I did suspect you were talking about IT's. I saw an article about them at the weekend, it said they massively outperformed Unit Trusts in each sector and over each time period.....
Yet people seem to think UTs are the only collective investment. IMHO Unit Trust investors are generally people that don't know a lot about investment
0 -
IMHO Unit Trust investors are generally people that don't know a lot about investment
I do hold some UTs but mostly for historical reasons (moved "in specie" from IFA "managed" ISAs that used to be PEPs) and I'm slowly ditching them.
There are some good UTs/OEICs, and they perform OK when times are good, but when things go mad they really struggle with the massive inflows and outflows. In times of low returns, those fees also become far more significant.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
yeah, some UT's are ok. if i wanted exposure to a specific area i would consider them. but for a general investment into European stockmarkets they are poor. the TER plus dealing fees are likely to be about 2.5%.
the ftse yields about 5%, so someone holding UT's loses about half their dividend income to fees
i think as soon as people understand that fund managers don't have some magic wand that guarantees good returns the better for everyone.0 -
the ftse yields about 5%, so someone holding UT's loses about half their dividend income to fees
5%? Which part of the FTSE has a yield that high? I thought the FTSE 100 was usually around 3.6%I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
i thought it was nearer 5% just now. if it is 3.6% it makes the effect of fees even worse.
plenty shares yield over 5% just now: centrica, vodafone, sainsbury, nat grid, shell etc0 -
i thought it was nearer 5% just now. if it is 3.6% it makes the effect of fees even worse.
Dunno where to look. Here?
http://www.digitallook.com/companyresearch/50058/FTSE_100/company_research.htmlplenty shares yield over 5% just now: centrica, vodafone, sainsbury, nat grid, shell etc
I hold all of those and am trying to pickup NG on a good price. Next time the FTSE has a "one day sale" I might go for it.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I accepted your original comment that this is not what an ifa would get involved with or could even contenoplate being capable of performing.Still misses the point that an IFA is not an investment manager. The IFA is a facilitator, planner and adviser. Yes, that will involve putting in place a strategy and recommending investments (and if servicing, tweaking them over time). However, the IFA is not actually doing the investment management.
Its an investment managers job - so in reality all i'm asking them is to put their money where there mouth is - if it really is a job for specialised skills and so on i'm happy to pay.
After all penalty clauses aren't uncommon in other industries when contracts aren't adhrd to.
So why should the wealth management industry be any different?
just a thought
fj0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards