IFA ongoing fee..Why pay?

[Deleted User]

NeilCr wrote: »

So much long word bollox in your posts

Of course you can build a bond of trust with your IFA. To an extent you need to. .. self investors defending their position - which is fine (all power to your elbows) but please do respect that some of us take a differing view

One of the hardest things to navigate, before firing your FA, is the "bond of trust" you imagine is between you. An anecdote from my experience:- I hired a Financial Adviser to extricate myself from my predicament after "the Hargreaves Lansdown experience." I wrested a DB pension on the understanding that I would bung him a grand and leave my pension in a s**t fund for six months. Because he was getting a bung from them on that date. But my SIPPnwas losing money hand over fist and I managed to bail out early because his sponsors reneged on the 6 mths bonus.I don't blame that adviser or the s**t fund he put me into because it simply reflected the down mkt (last quarter of 2018).
I was lucky in the timing of my transfer.

If you do employ an IFA, don't buy a brilliant IFA, buya lucky IFA.

bigadaj

ZingPowZing wrote: »

Yes. When I wrested my pension, I put the cash sum into six stocks.
The only thing I have done since is put 1/2 yr div inc into a share tip.
Very happy.
Do you want figures?

Yes, go on.

Six figure sums into six stocks when it presumably accounts for a significant proportion of your wealth is unlikely to be a safe or reliable investment strategy.

[Deleted User]

bigadaj wrote: »

Yes, go on.

Six figure sums into six stocks when it presumably accounts for a significant proportion of your wealth is unlikely to be a safe or reliable investment strategy.

You disagree with Warren Buffett.

Six is probably two too many for a clear investment strategy.

Of course, the investor has to ride more volatility. So much depends on the entry point. I was very lucky. My Financial Advisors helped me, by hindering my progress towards taking charge of my DB pension. I suppose I should thank them for that.

NeilCr

ZingPowZing wrote: »

One of the hardest things to navigate, before firing your FA, is the "bond of trust" you imagine is between you. An anecdote from my experience:- I hired a Financial Adviser to extricate myself from my predicament after "the Hargreaves Lansdown experience." I wrested a DB pension on the understanding that I would bung him a grand and leave my pension in a s**t fund for six months. Because he was getting a bung from them on that date. But my SIPPnwas losing money hand over fist and I managed to bail out early because his sponsors reneged on the 6 mths bonus.I don't blame that adviser or the s**t fund he put me into because it simply reflected the down mkt (last quarter of 2018).
I was lucky in the timing of my transfer.

If you do employ an IFA, don't buy a brilliant IFA, buya lucky IFA.

No. Get involved with a sensible IFA who you have researched thoroughly and had a couple of meetings with to see if you gel.

There is no "imagination" in the bond of trust with my IFA (from your post you employed an FA which, I understand, is different). I have known her and her firm for twelve years now. I have had excellent service and decent returns over that time What more can you ask?

Sounds like you plunged in to be honest without doing enough research

[Deleted User]

NeilCr wrote: »

No. Get involved with a sensible IFA who you have researched thoroughly and had a couple of meetings with to see if you gel.

There is no "imagination" in the bond of trust with my IFA (from your post you employed an FA which, I understand, is different). I have known her and her firm for twelve years now. I have had excellent service and decent returns over that time What more can you ask?

Sounds like you plunged in to be honest without doing enough research

I'll accept the last point based on my priorities, avoiding being scammed, local access, and not being engaged.. I think avoiding a scam is at the forefront of most peoples' minds at the outset.

Since you mention a 12 year time fame, shares in AAPL have appreciated 1700%, Microsoft 500% ( in £ terms). They are not mentioned randomly, these are the two biggest companies in the world. Not hard to find. Each pays a dividend. How has your IFA managed fund performed in the same period NeilCR?

NeilCr

ZingPowZing wrote: »

How has your IFA managed fund performed in the same period NeilCR?

Provided me with more than a comfortable lifestyle with little or no stress for me.

I am not so worried about outperforming the market or comparisons with individual shares (I assume you have both of those in your portfolio) than the above. You don't have to be the best of the best - just get it right for the client. My portfolio has jogged along quite nicely, thank you. My investments provide me with income to enhance my state and occupational pensions. Over that period, on top of that, there has been capital growth (excluding lump sum withdrawals) - and I have more than enough to see me through.

You - on the other hand - got it wrong because as you say " you weren't engaged". This with one of the most important things in your life - your pension.

Prism

ZingPowZing wrote: »

Since you mention a 12 year time fame, shares in AAPL have appreciated 1700%, Microsoft 500% ( in £ terms). They are not mentioned randomly, these are the two biggest companies in the world. Not hard to find. Each pays a dividend. How has your IFA managed fund performed in the same period NeilCR?

Ok so lets go back 12 years. At this point Apple had just released the first iPhone and the shares had roughly doubled in price over the last year. Would you have bought at those prices and then stayed invested over the next year when it halved again? How about Microsoft. The shares had done nothing for about 5 years before that and did nothing much for another 5 after. What would have made you invest back then in a company going nowhere?

[Deleted User]

Prism wrote: »

Ok so lets go back 12 years. At this point Apple had just released the first iPhone and the shares had roughly doubled in price over the last year. Would you have bought at those prices and then stayed invested over the next year when it halved again? How about Microsoft. The shares had done nothing for about 5 years before that and did nothing much for another 5 after. What would have made you invest back then in a company going nowhere?

Fair play to anyone who found an entry point to those shares then. I came late to Aapl because I could not find them on the Dow index! After the crash. From memory AApl shares were c $200. Before the 7/1 split. But I'm happy to start counting from any point Neil cares to mention.

bigadaj

ZingPowZing wrote: »

You disagree with Warren Buffett.

Six is probably two too many for a clear investment strategy.

Of course, the investor has to ride more volatility. So much depends on the entry point. I was very lucky. My Financial Advisors helped me, by hindering my progress towards taking charge of my DB pension. I suppose I should thank them for that.

Apologies, I didn't realise you had billions of pounds to invest strategically and take significant stakes in huge companies.

If you want to take buffets advice he advised his widow to invest in a tracker, and I woudn guess Mrs Buffett may have more financial acumen than you appear to have.

You offered to provide figures and these haven't been forthcoming, I would have expected approximate amounts and the six stocks that provide this excessive diversification you now claim.

Huge companies go wrong regularly, look at BP, lloyds, aia, etc etc, six companies really isn't enough.

[Deleted User]

bigadaj wrote: »

Apologies, I didn't realise you had billions of pounds to invest strategically and take significant stakes in huge companies.

If you want to take buffets advice he advised his widow to invest in a tracker, and I woudn guess Mrs Buffett may have more financial acumen than you appear to have.

You offered to provide figures and these haven't been forthcoming, I would have expected approximate amounts and the six stocks that provide this excessive diversification you now claim.

Huge companies go wrong regularly, look at BP, lloyds, aia, etc etc, six companies really isn't enough.

For three reasons I would rather not supply figures:- firstly, I realise that my timing was lucky; secondly, hubris, and Trump interfering again between the China/USA trade deal. Thirdly, you can guess at least two, which are in the top three. Additionally, I shouldn't like the focus of thread shifting too far from the role of advisers.
But I'm not dogmatic about it:- if bigadaj mounts a credible argument beyond "huge companies go wrong regularly," I'll provide a comparison to the performance this year against his and other readers' funds. Maybe tomorrow.