Norwich Union Portfolio Step-down: any good for income for a 63-yr-old?

TBeckett100

Wurz wrote: »

Hi, I'm away from home at the moment, so have no exact details to hand, but my initial conversation with Lloyds was that I was looking for monthly income, what could I get for £100k. The advisor came up with £375 and said any growth in capital would be added to total. First year, minimal growth, 2nd year grew to £106k and then downhill to £94k currently. My criteria was not to endanger capital, and not once have Lloyds/SW's suggested taking less a month-in fact one of their replies was that "your investment has only gone down because you are taking monthly income". I reminded them that the monthly income was the whole purpose of the exercise! Thanks to all who are responding to my queries, I'll recheck and look/reply to any messages Sunday evening!

if you are drawing money from bonds you need an IFA who will commit in writing to review your funds periodically and not a sales force agent who is in it for the initial commisison and sale. all my clients get annual reviews to make sure the investment is meeting their objectives,

TBeckett100

i am revewing a natwest life bond for a client at the moment invested ina cautious fund. when invested trhe fund was top but a 51% fixed interest and 15% casbn holding has put the fund to the bottom of the cautious managed pile. truth that the banks take all the comission but do not provide that ongoing review only to ask you about ISAs each year

EdInvestor

dunstonh wrote: »

However, the downgrading in advice for the rest will be a disaster for the middle market. Even the FSA have admitted that those in the middle net worth bracket will be worse off as the "new style" IFAs will be fewer in number and dealing with more of the high net worth. The medium net worth clients will have to decide whether to pay for a higher quality level of advice or pay in hidden charges for a lower quality level of advice, even lower than what the banks offer at the moment.

I know you are continually batting on about tied agents and IFAs, but one does suspect that most people can't tell the difference and who is to blame for that?

Part of the problem is the (well-documented) wide variations in the quality of IFAs, whether small companies, salesforces, NMA or whatever, along with their lack of a set of reasonably taxing qualifications (the current basic exam is derisorily easy) , or a single trade body to operate at least a basic disciplinary process.

The industry is very poorly structured and at present advisors simply don't constitute a profession, like solicitors or surveyors, and that's why people don't really want to pay them fees.

If the new rules do provide a top layer of genuine professionals who do act on behalf of the client, and have a proper professional structure then they will eventually attract the middle market - after all there are plenty of people willing to pay fees to buy or sell their house.

But at the moment, to operate properly in the advice field an investor really needs enough knowledge to understand what the advisor is doing to check he's not being ripped off or getting incompetent advice.

Once you've got that far, it's but a short step to wonder why you're paying someone to do stuff which you could really do yourself with only a bit more effort.The rise of the internet and the execution-only companies makes this more apparent by the day.

whoosh

EdInvestor wrote: »

An article about what's happening in the bond market, which may help wurz understand what has caused the problems on the investment front.

http://business.timesonline.co.uk/tol/business/money/investment/article1942056.ece

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Does this article mean that my mother's Scottish Mutual with-profits bond might have had a nosedive on the surrender value? It stood at surrender value of c£100k on a £108k investment - this was last checked at least a couple of months ago. I'll have to check again on Monday...anyone know if this quoted article refers to this type of bond?

EdInvestor

whoosh wrote: »

Does this article mean that my mother's Scottish Mutual with-profits bond might have had a nosedive on the surrender value? It stood at surrender value of c£100k on a £108k investment - this was last checked at least a couple of months ago. I'll have to check again on Monday...anyone know if this quoted article refers to this type of bond?

Oh dear, it could do,the ScotMut WP fund is largely in bonds IIRC, and these zombies have no real smoothing capacity any more. .

dunstonh

I know you are continually batting on about tied agents and IFAs, but one does suspect that most people can't tell the difference and who is to blame for that?

Blame lies with tied agents and the FSA mostly. Tied agents pretending to be IFAs are a big cause. I have mentioned that research last year that showed around 70% of consumers using a tied agent though the adviser was actually independent.

The FSA have muddied the waters with depolarisation by allowing advisers have different hats on. You can be tied sitting in front of one client but independent sitting in front of another. Its just so messy.

Part of the problem is the (well-documented) wide variations in the quality of IFAs, whether small companies, salesforces, NMA or whatever, along with their lack of a set of reasonably taxing qualifications (the current basic exam is derisorily easy) , or a single trade body to operate at least a basic disciplinary process.

IFAs are generally a higher standard and always have been. However, there has been an influx of advisers in recent years because of the closure of the tied agent salesforces who think they can operate the same way as they did in their tied agent days. That said, this is one of the areas where the FSA's proposals are good and I am quite happy from a personal point of view as the top end adviser model seems to mirror that which is used by NMA IFAs.

The industry is very poorly structured and at present advisors simply don't constitute a profession, like solicitors or surveyors, and that's why people don't really want to pay them fees.

No its not. It is well documented that people dont want to pay fees for something they perceive they can get free of charge from banks or other advisers.

Paul_Varjak

Coops10 wrote: »

I do not know dunstonh - but it seems a shame that he comes on here on a very regular basis giving some excellent guidance to people, only to be slated by people purely for being an IFA? If I was him, I'd have given up by now! If you have been stung by poor advice before, which has obviously happened in our industry, why generalise that everyone is the same?

I wholly agree. My mum's IFA gave my mum poor advice but that does not give me the right to tarnish every IFA with the same brush. As far as I am concerned, Dunstonh is a true hero on this forum. Someone, who clearly has great knowledge in his subject area and continues to provide excellent guidance on this forum.

In spite of all of EdInvestor's goading, bad information, sweeping statements and apparent inability to understand simple facts or engage in logical and constructive criticism, it is Dunstonh that has continued to keep this forum on a level keel for more than two years.

baby_boomer

Paul_Varjak wrote: »

I wholly agree. My mum's IFA gave my mum poor advice but that does not give me the right to tarnish every IFA with the same brush.

Maybe not, but you'd be fool to trust the next one you came across without doing loads of homework beforehand.

Is that what you expect from a profession?

jem16

baby_boomer wrote: »

Maybe not, but you'd be fool to trust the next one you came across without doing loads of homework beforehand.

So if you had bad advice from one doctor, you would never see another doctor without first reading up a medical dictionary?

Is that what you expect from a profession?

Every profession has its bad apples. Remember Dr Shipman? It doesn't mean I will never trust another doctor.

Paul_Varjak

EdInvestor wrote: »

If you want to be treated like professionals, then you must act like them.Otherwise people will treat you like salesman

I have never seen dunstonh act in any way other that professionally on these forums, despite continued attacks from those people that seem to have a grudge against IFAs.