Projected returns from a financial planner

Big_bob

After trying to trawl through all of the documents sent by my bank on how my stocks and shares ISA's may or may not do, I've decided to take things into my own hands and try and project how my funds may actually return.

Well after endless amounts of Googling I've stumbled across a site called Moneyvista.com who seems to be projecting things in a pretty positive way, but I'd like to know if anyone has ever a) heard of it, b) used it or even c) can it be trusted?!?!?!?!?!

Any or all comments welcome.

Cheers Bobby!

gadgetmind

I can recommend "Smarter Investing" by Tim Hale if you want to see the range of long-term performance figures for various combinations of equities and bonds.

pqrdef

gadgetmind wrote: »

I can recommend "Smarter Investing" by Tim Hale if you want to see the range of long-term performance figures for various combinations of equities and bonds.

"Past performance is not a guide to future performance."

dunstonh

but I'd like to know if anyone has ever a) heard of it, b) used it or even c) can it be trusted?!?!?!?!?!

It is a spreadsheet with a graphical front end.

Nothing to do with trust or reality. It will display information based on the assumptions that have been input and selected. If you change the assumptions and data input then the output will differ.

who seems to be projecting things in a pretty positive way

Seeing as they are not financial planners/IFAs and it is just software outputting information and guides providing relatively generic information or factual information (rather than guidance or advice) what is it that you are viewing that gives you this impression?

I've decided to take things into my own hands and try and project how my funds may actually return.

You cant predict the future. You can look at long term average returns but these mean little in the early years as long term average smooths out the ups the downs and it can take closer to 20-30 years to get close to the long term average and that assumes that the future will look like the past and there is no guarantee of that.

Big_bob

Hi Dunstonh,

I've had a little play around with the assumptions area and like that you can amend the information in line with my own pessimistic views on how my investments may grow, but I take your point.

dunstonh wrote: »

what is it that you are viewing that gives you this impression?

I do understand that this is only a projection, but to me it is projected in a clear way and projects until retirement and ultimately death, which to be fair you don’t get that kind of specific data from most statements/pamphlets you receive.

dunstonh wrote: »

You cant predict the future.

And yes of course you’re right, I know we can’t predict the future, but for an average person like myself without an IFA, this projection engine gives me something that I can actually visualise in order to see where I might be in the future.

Admittedly it’s not giving me any actual advice, but then it’s free and is just providing me with where my finances are at (or could be) without any hard sell, rather than what, £150 per hour for the privilege of an IFA???

Cheers

dunstonh

I do understand that this is only a projection, but to me it is projected in a clear way and projects until retirement and ultimately death, which to be fair you don’t get that kind of specific data from most statements/pamphlets you receive.

Historically, that sort of software has come at a cost and aimed at IFAs to use with clients. We get charged for it. So, there hasnt been an appetite for providers of the software to give it away free to consumers. A trend in these internet days it to provide a product free for a period to bring in a user base and then introduce a fee later. Or perhaps start with a cut down version and bring in features which then need to be paid for.

srcandas

Big_bob wrote: »

to see where I might be in the future.
Cheers

Bob I reckon having a plan A, and several plan Bs is a good idea. And having plans for which you have no idea what the outcome will be seems a bit nutty to me. So I say predict away :cool:

Just make sure you question every prediction from every angle, then post it here for unbiased comment

grey_gym_sock

you should definitely be using this kind of software to come up with a range of likely outcomes, rather than a single value. a small difference in assumptions (e.g. investment returns per year, which are then compounded over decades) can give a huge difference in outcomes. so you're likely to be looking at a very wide range of possible outcomes. and even then, the future may not be like the past. it's all good fun, though

srcandas

Visited moneyvista. As dunston says it is free for a limited period. They are offering free use in exchange for your email and personal details (temp. email gets round that of course and will avoid the barrage of advertising you might get otherwise ). Looks almost identical to the tools an IFA showed me recently.

Seems IMHO more useful for expenditure and interest based savings planning than investment planning. I also imagine much more useful if you fit in the Mr and Mrs average boxes: i.e. Salaries, aim to work to retirement date, then pension, UK based.

But as Grey Gym Sock says a bit of fun :beer:

bob_a_builder

"Past performance is not a guide to future performance."

Although they always go to great effort to ensure that data is visible to the potential punters ...

srcandas

It seems so sad to me that the industry is screwed up on this "past performance is not a guide to future performance". Of course it is.

Agreed it is not as good a guide as future performance but getting info on that ahead of time is just so tricky

Ok I understand the industry needs to protect itself from brainless idiots who think money grows on trees but the clue is in the word "GUIDE"

Hell I'm having a bad day :rotfl: