IFA Visit - Costs- Market Outlook - True Potential Platform

SonOf

..Interestingly another dodgy (in my opinion) strategy they used was to heavily imply that their insurance protected me from poor performance. I did press them on this but they insisted that underperformance might be an insurance matter!.

No. All adviser firms hold PI insurance and it is to cover in the event of poor advice. Not underperformance. Indeed, there is no such thing as underperformance as what will be will be. The next decade could be 10 years of no growth. Is that underperformance? No. It is just markets doing what markets do.

cfw1994

green_man wrote: »

As I said earlier they didn’t indicate how often they may have advised people out of the market with no subsequent dip. No worries I’m immune to this type of ‘persuasion’.

Interestingly another dodgy (in my opinion) strategy they used was to heavily imply that their insurance protected me from poor performance. I did press them on this but they insisted that underperformance might be an insurance matter!

Mmmm....sounds like a salesman who doesn't really fully understand what they are selling!!

jamesd

green_man wrote: »

They did seem to be proud of calling the 2008 crash and the 2015 blip. What they did not tell me was how often they have advised people out of the market with no subsequent dip. Obviously calling a big crash could have a huge positive impact on your portfolio.

Have a read of the first and third posts of Drawdown: safe withdrawal rates.

It's not about short term market timing but rather medium term positioning. There's no guarantee that markets won't rise strongly for the next ten years, it's just not the likely outcome. Knowing that is part of why I have review date history left in the first post: I can see probabilities but I'm not a psychic.

Hopefully they are saying reduced equities rather than fully out. Probabilities again, covering the unlikely but still possible ten more good years case.

green_man

jamesd wrote: »

Have a read of the first and third posts of Drawdown: safe withdrawal rates.

It's not about short term market timing but rather medium term positioning. There's no guarantee that markets won't rise strongly for the next ten years, it's just not the likely outcome. Knowing that is part of why I have review date history left in the first post: I can see probabilities but I'm not a psychic.

Hopefully they are saying reduced equities rather than fully out. Probabilities again, covering the unlikely but still possible ten more good years case.

Thanks James, yes I’ve been through that excellent thread before and you’ll see I was one of the first to comment on it. Based on that thread I used CFiresim to tune my drawdown rate plans.

The IFAs inference was, yes, reduced equity exposure not complete market exit, more of a case of preferring a move to a more defensive strategy in the current outlook. But I seem to recall you yourself advocating a reduced equity exposure for several years now?

I tend to confuse myself with this stuff, it sounds a sensible option now but.... a thread I started a few months ago about percentage of cash to hold in the portfolio (this one: https://forums.moneysavingexpert.com/discussion/5948700/any-point-in-a-cash-buffer-in-pension-drawdown-account ) and in the research for that thread I convinced myself that a 100% (or near) equity exposure was the best approach if I was only going for a 3% or less withdrawal rate. So who knows?