IFA Fees

choi

Thrugelmir wrote: »

Rather than committing a large lump sum. Perhaps drip feeding a small amount on a monthly basis into a broadly diversified (low cost) fund is a better approach for you. Whilst leaving the remainder on deposit. Find your feet slowly. You may not achieve your 4% return but at least your capital will remain intact.

But surely the risk is still there
All this does is offset it until the fund builds up

Having said that it is a way to get a feel for a fund without jumping in with two feet

choi

bostonerimus wrote: »

I disagree. For most people organising their finances is relatively easy and investing does not need to be complicated at all. The golden rules can fit on a single index card and if you follow them there is a very high probability you will reach you goals without ever having to pay an IFA/FA. You will have to use an advisor when the system forces you to, say if you want to move the CETV of a DB plan to a SIPP, but generally you can save yourself their fees and do as good a job yourself.

What do I need to do to get to this stage
Can you recommend a book to point me in the right direction

Or would I be better with Vanguard type funds

Malthusian

Thrugelmir wrote: »

Like Estate Agents only generate income on completed transactions. All the wasted time has to be paid for.

And shopkeepers only generate income from people who walk into the shop and buy stuff. The idea that IFAs are somehow unique in that they occasionally do work that doesn't get directly remunerated is almost unique to the profession.

Some people are so self-important and insecure they feel they shouldn't fart unless it generates billable hours.

Most take a more relaxed "swings and roundabouts" approach.

bostonerimus

choi wrote: »

What do I need to do to get to this stage
Can you recommend a book to point me in the right direction

Or would I be better with Vanguard type funds

Spend less than you earn
Pay off all high interest debt
Save 6 months cash into a saving account
Contribute to your employer's pension plan. If it uses investment funds buy multi-asset funds
made up of index trackers if you can. If not buy index trackers.
Contribute to your ISA and buy multi-asset funds like VLS60.
Do this for 40 years.

Malthusian

bostonerimus wrote: »

Spend less than you earn
Pay off all high interest debt
Save 6 months cash into a saving account
Contribute to your employer's pension plan. If it uses investment funds buy multi-asset funds
made up of index trackers if you can. If not buy index trackers.
Contribute to your ISA and buy multi-asset funds like VLS60.
Do this for 40 years.

The OP's retired and if he takes your advice, after 40 years he'll probably be dead, having worked himself into the grave.

On the plus side there is no way he can lose money with your plan, let alone run out of it.

Thrugelmir

choi wrote: »

But surely the risk is still there

When investing you take a risk with your money. You aren't willing to accept the risks. Scale back your expectations.

bostonerimus

Malthusian wrote: »

The OP's retired and if he takes your advice, after 40 years he'll probably be dead, having worked himself into the grave.

On the plus side there is no way he can lose money with your plan, let alone run out of it.

OK
Do this then,“
Do a detailed budget and spend less than your pension pot and savings can sensibly support
Understand all your income sources; state pension, and DC and DB pensions.
Plan to pay off all high interest debt..you should really have done this by now
Save 2 years cash into a saving account and maybe some short term bonds to act as a buffer against market down turns.
Drawdown from your employer's pension plan. If you need and inflation linked 4% drawdown stay invested in multi-asset funds like VLS60 and use something like Guyton to control withdrawals.
Drawdown from the multi-asset funds in your ISA.

Do this until you die

[Deleted User]

choi wrote: »

But surely the risk is still there
All this does is offset it until the fund builds up

Having said that it is a way to get a feel for a fund without jumping in with two feet

My IFA has given me details of all his portfolios and I track them via Trustnet
He has dealt with me in the past but I am not transferring into him until next year
So I can get a feel for it
If you must choose a IFA (and I choose to) then it's a very intimate relationship and you have very serious conversations that sometimes you don't have with your own family
If you don't think you can have this relationship with your chosen IFA, then I suggest you choose one that you can or go DIY