Forced to get an Financial Advisor

atush

gadgetmind wrote: »

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!

I completely agree, this looks like it was cooked up by a 20 yr old risk taker, not a professional lol


I am surprised he did tell you to put the lot on Black:eek:

dunstonh

gadgetmind wrote: »

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!

To be honest, I agree. If you are going to build a bespoke portfolio, you expect the allocations to cover the range of major investment markets and asset types. That sort of allocation nowadays needs to be backed up with due diligence (i.e. if the regulator walked through the door and asked how they built the portfolios, they would need to demonstrate suitability). This looks like an allocation built 10 years ago with a bit of stock picking in there. Not something of modern standard.

Currently, the investor is in multi-asset and generically around moderate risk. The recommendation is using a more advanced method (which is fine) but without structure and the risk is more like highly adventurous.

If this went to the FOS as a complaint, they would be looking for evidence that the investor was knowledgeable enough to move on to single sector investments in a bespoke portfolio and that the significant move up the risk scale was both acceptable and affordable as well as understood. They wouldnt look at investment quality (i.e. no US, property, bonds etc) but would measure the risk the overall assets.

RichandJ

greenglide wrote: »

£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.

Pre 88 GMP in there, so that element may not have any indexing. Also the quote given sounds low, unless the figures have had an ERF (early retirement factor) applied or Barclays don't revalue GMP by Fixed Rate.

xylophone

Barclays don't revalue GMP by Fixed Rate.

It appears that Barclays use Fixed Rate.

https://forums.moneysavingexpert.com/discussion/4736856

http://webcache.googleusercontent.com/search?q=cache:rZgVz5VexKsJ:www.pensions-ombudsman.org.uk/determinations/docs/2008/aug/s00105.doc+&hl=en&gl=uk

atush

I also thought 1405 while more reasonable was a little low.

riccaricca

rpc wrote: »

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

No USA allocation? No fixed interest?

Honestly I've got it in black and white that these are the funds he recommended.
I did say to the FA I wouldn't mind a bit more risk!!

I've got to thank dear old mum again, as when I showed her the funds she said they seemed to be completely off the board in the high risk factor. That's why I told the FA that I wanted to do more research and then decide. He wasn't too happy as I suppose he had done some work. I dont know whether to switch perhaps 20% of the managed fund into a higher risk fund in FL as I don't have to pay to switch, or perhaps switch the With Profits fund. Unfortunately I'm a real novice at this pension planning and the more I read the more confused I get.

Thank you to all who have responded, I appreciate all the feedback.