Forced to get an Financial Advisor

gadgetmind

Why do you want to move away from FL? They have some good funds (not that I'm saying those you have are necessarily good!) and you can get fees down to 0.5% pa or lower.

Now is a good time to review things but I'm not sure it's time to blow 55 of what you've carefully saved in fees! Why did the FA (IFA?) recommend you moved?

What are your current fees with FL? Have you looked at "repensioning" via Cavendish Online?

dunstonh

Just read this thread as 3 months ago I was thinking of transferring my Personal Pension to another provider and I was told it had to be done through an FA.

A personal pension doesnt need an FA. However, if the receiving scheme is administered via an FA and does not accept business directly then it does.

As I was only young at the time (22), I went along with what the FA recommended.

And sounds like very good advice.

Any thoughts on these funds especially on Friends Life With Profits Series 4 Fund? They seem obsolete now.

The WP fund is long in the tooth but the managed fund is fine for an inexperienced investor.

You probably could save money using an FA. Perhaps your discussion with the FA should have been more about you wanting to save money rather than paying for what could be higher quality/higher potential investments. Some people focus on charges. Some focus on investments. Some do a bit of both. The AXA Retirement account can be very good value (mainly with larger amounts). However, it can have cheaper investments and more expensive ones. If you use an adviser, and you want cheapest, then you need to tell the adviser that.

riccaricca

Thanks for your replies.

gadgetmind

It wasn't that I wanted to move away from FL, it was that (1) I felt the Funds hadn't performed that well, (2) the FA advised moving to AXA as then I could select a lot more funds. (3) I only had 13 funds I could choose from at FL as my pension was in (Series 4).

The fees are cheaper at FL than AXA, but the FA said that hopefully with higher returns from the new funds I should still do better. Of course he couldn't guarantee that, which is fair enough.

dunstonh

Yes, I do need an FA as FL and AXA doesn't deal directly.

And you are right about the FA giving me good advice about starting a pension but it was my mum who kept on about it. (Thank you mum).

So, do you think that it's a good idea to switch the WP fund? I know you can't tell me what to do but it's good to hear different opinions, especially by more knowledgable people.
As to the Managed Fund, on doing some research it doesn't seem too bad.

I told my FA that I didn't think the Pension had done that well and I wanted more return. I didn't mind a bit more risk as I had at least another 25 years before I reached 60 and thinking of retiring. He recommended switching to AXA.

riccaricca

These are the funds that the FA recommended.


20% into Henderson European Selected Opportunities
20% into First State Asia Pacific Leaders
20% Jupiter Japan Income
20% JPM Emerging Markets
10% Newton Asian Income
5% Artemis UK Special Situations
5% Psigma Income

cganesh

Just a note on my pension, for those still interested, Barclays have told me my deferred pension at 2014 is £1405 which seems a little better than £582 doesn't it? I assume you don't get the full £50K but a direct comparison would mean estimating my living until 95 which aint going to happen. Is that how most companies calculate it, they assume women will live to 95yrs by the way,ric, or anyone else, how much does the FA charge, is it hourly or what?

greenglide

£1,405 pa index linked for the rest of your life (with a spouse / partner benefit for the rest of life whether you want it or not) guaranteed would cost well over £50,000 to buy as an annuity (and really that is the only comparison).

You say "it aint going to happen". Can you absolutely guaranteed that? Barclays are.

rpc

riccaricca wrote: »

20% into Henderson European Selected Opportunities
20% into First State Asia Pacific Leaders
20% Jupiter Japan Income
20% JPM Emerging Markets
10% Newton Asian Income
5% Artemis UK Special Situations
5% Psigma Income

What's your risk tolerance? Looks like about 12 on a scale of 1-10.

No USA allocation? No fixed interest?

cganesh

Pretty much greenglide given my family history and if I did, the last 20 would be where I didn't even know my name or remember what money was and I would rather not be here. Depressing, but realistic-live for the NOW in my case!

gadgetmind

rpc wrote: »

What's your risk tolerance? Looks like about 12 on a scale of 1-10.

Yes, pretty breath taking! No bonds, no property, no US, very little UK.

I find it hard to believe a professional recommended this as it looks more like the holdings of a private investor who has no idea about asset allocation and just goes for whatever sounds sexy!

atush

Look carefully at your famaily history as not all things are genetically inherited (such as the Brac cancer genes) but many are lifestyle choices.

My mother and father smoked like chimneys and I dont, so not expecting to die as young as they did? Add in poor diet and no exercise and you could out live them by many years.

Plus you keep forgetting about indexation.