Is it just me, or do you feel aggrieved too?

dunstonh

I would also say that, as a professional adviser, if I were to use the tools/calculators that are freely available on the internet (HL, Cavendish, MAS), I would be hung out to dry by my compliance people. We use tools which are not available to the general public, and in fact many IFAs can't afford them.

I have to agree.

I did an open market option at the start of the week and thought I would check MAS figures on annuities. So far, the figures I have obtained are over £1000 a year higher than those which were shown on MAS. The best companies are not the best on the MAS list.

So, had this person used MAS to get their annuity and bypassed an IFA to try and avoid commission (although I am doing it on fee with commission being taken to the value of the fee as its the most efficient way to do it), they would have ended up with £1000 less a year for the rest of their life. I'm hoping with a bit more haggling, I will get this figure closer to being £1500 a year better.

Some people can get so focused on trying to avoid an adviser being paid that they can cut off their own nose to spite themselves. I have seen people in the past buy products that cost them more in charges but pay less in commission because they only focused on the commission payment and not what they were paying.

grizzly1911

atush wrote: »

As for saving, apy attention to NSI and buy some ILSCs when they are released again. And invest in equities thru an investment trust savings plan. Both of these will give you returns over inflation in the long run.

Good reasoned post.

I know this thread has gone off track a tad. I think part of the OPs frustration is more general in that they , like many, including me (with/without advisors) have been careful, been prudent, provided, spread our investments in type and nature yet we are being laid out to waste in the current political/economic situation.

Like you Idon't believe state pension will be withdrawn as too many are reliant on it particularly at the lower end and many people can't provide sufficiently for themselves.

In many cases the State pension bit is recouped through the tax allowance reduction or increased spending, of those with good pensions.

Interesting that Investment Trusts are always sold medium to long term - I wonder if this is on the basis that performance is often mediocre and the oricinal promoter will have long gone by the time you realise the medium term has gone.;)

I have always taken the view that at least having accumulated wealth allows me choice. To be reliant on the state removes that flexibility.

atush

Good reasoned post.


Interesting that Investment Trusts are always sold medium to long term - I wonder if this is on the basis that performance is often mediocre and the oricinal promoter will have long gone by the time you realise the medium term has gone.;)

Grizzly, My 'reason' stems fromt he fact I didn't read all the replies lol. Just the first so many. And i agree, flexibility provided by your own actions is always best.

But I disagree about IT providers being a fly by night operation. Some of the ones I hold have been around for over a hundred years lol. One of the resons I like them is that they are lower in costs than equivalent Oeics or UTs allowing greater long term growth. I also like the fact that if you have a good managed trust, they have the resource of gearing to help them take advantage of good buying opps.

Linton

grizzly1911 wrote: »

Good reasoned post.


Interesting that Investment Trusts are always sold medium to long term - I wonder if this is on the basis that performance is often mediocre and the oricinal promoter will have long gone by the time you realise the medium term has gone.;)

The reason is that Investment Trusts are companies that invest in other companies and so are subject to the variability of the overall stock market both because of the investments they hold but also because they are themselves companies quoted on the stock market.

In the short term the variability will outweigh any longer term trend. So like any equity investment 5 years is quoted as a minimum to have a much better than random chance of making a profit.

elantan

brianrhill wrote: »

,
Many amateur investors think they have a good understanding of finance, and sometimes they do an okay job on the basics. However, when you see, as per a previous post, someone 'just finding out' about Pension Input Periods (which is fairly basic stuff) and then expecting their accountant to know about this (very few seem to know about pensions full stop let alone PiPs) then I worry for anyone taking that poster's advice.

The knowledge built up over the years of 'how things work' does not come from my own finances, reading some books, and not even from qualifications, although they provide a good grounding. It's from working on case after case after case. You can't get that experience online, and an amateur investor who thinks that reading a few books and getting some decent returns on their own finances makes them suitable to dish out advice as if they know that they are doing, is fooling themselves, and I would add that they're probably one of the biggest dangers (outside of banks) to Joe Public.

i can see where you are coming from with this ... and i fully accept i know nothing about retirement planning,

i am trying to learn about retirement planning, due to going to see and ifa to try and get the right plan in place for myself but came away more confused than ever,

i want to be able to learn enough about it so that when i talk to an ifa i can make an informed decision about my future, i deff want to have an ifa involved in my decision making but i want to be able to know and understand the process for myself ...

and if by helping others and myself get the best future ( financially) for us then quite frankly i couldnt care less if the guy could afford to buy a merc or a space ship ....

i have been ( imo) ripped off in the past and i dont want that to happen again so i need to learn ... hence my thread about learning material

gadgetmind

brianrhill wrote: »

As such, we became an accountancy as well as an IFA practice with a CIMA on board. When we do client plans both the IFA and the accountant are involved. If a client's accountant doesn't play ball, then we often find that clients move both the IFA and accountancy side to us.

Sounds ideal. The major problems seem to occur when you have an IFA who understands pensions, and an accountant who understands tax, and the ball then goes straight down the middle.

gadgetmind

elantan wrote: »

i want to be able to learn enough about it so that when i talk to an ifa i can make an informed decision about my future, i deff want to have an ifa involved in my decision making but i want to be able to know and understand the process for myself ...

That sounds like a very sensible and mature approach.

StevieJ

howee wrote: »

Sorry Susie, tes it looks like you turned up too late for the party 2000-2009 where if you had turned up and told them you need money but didn't want to work (lazy), but wanted all what next door has NOW!!!! You would have been welcomed to the orgy with open arms.

Alas you are also not allowed into the MSE party where, if you did the above you blame the banks, politicians, your neighbour in fact anyone but yourself for having too much debt. 'why didn't they refuse me' goes the cry and no responsibility for their own actions.

Sorry Susie, 2 parties and you have missed both.

Not what I hear, I hear 'why didn't you refuse them' from The Shareholders :eek:

grizzly1911

Linton wrote: »

The reason is that Investment Trusts are companies that invest in other companies and so are subject to the variability of the overall stock market both because of the investments they hold but also because they are themselves companies quoted on the stock market.

In the short term the variability will outweigh any longer term trend. So like any equity investment 5 years is quoted as a minimum to have a much better than random chance of making a profit.

Agree totally with your reasoning - guess I just chose all bar one that should have done better.

Off topic - What ever happened to those pure "with profits endowment policies"?

savingssaver

The problem I think is no one understands pensions, annuities or whatever other term there is for them and people really can get ripped off especially at the minute with interest rates so low. I mentioned on another post that my dad was at the mercy of these markets and didnt have a clue what to do, I don't know if it will help anyone on here but he got help from a company called My Pension Expert, their website is www.mypensionexpert.co.uk and he was overjoyed, they actually got him much more pension income through an enhanced annuity (whatever that means i don't know all I know is that he is a bit of a drinker and smoker).

Now the reason I'm sharing this is everyone is saying about how the middle men are the ones making the money etc but he wasn't charged a penny by them and they were at the end of the phone whenever he needed them. Sorry if nobody finds it useful but he couldnt fault them and he normally finds faults with any company so I hope someone finds it useful if they are like suzy feeling a bit aggrieved at the minute.