Financial adviser retiring - Would like to manage money directly now

1234John

Thanks for the help!! I understand my investment is small.
To simplify (in my mind)...
If I have 100K in the bank (savings account) I maybe lucky enough to earn 2% per year.
If I put the funds into stock and shares, I maybe lucky enough to earn 4% per year.
2 or 4 K on top off my state pension keeps me well below my yearly tax allowance...
So is it not that simple? For my rather small amount of savings!!??
I broadly receive 4% per year through my current financial advisory (or where he has recommended putting the funds, my risk is scored as medium).

Aminatidi

So not quite comparable because in my mums case we're dropping the IFA but...

General process for us was give the IFA notice and with the platforms ours was using my mum simply got direct access with the IFA's "oversight" and control/access removed.

We then opened an ISA with Vanguard and are looking at transferring the existing investments across into that.

Please don't take this as a plug for Vanguard but whoever you look at if you want a simple life with low fees look at a multi-asset and concentrate on getting your risk level right.

newatc

Aminatidi said:

So not quite comparable because in my mums case we're dropping the IFA but...

General process for us was give the IFA notice and with the platforms ours was using my mum simply got direct access with the IFA's "oversight" and control/access removed.
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Does that mean the IFA had direct control over your invested funds? Don't think I would like that

Albermarle

I broadly receive 4% per year through my current financial advisory (or where he has recommended putting the funds, my risk is scored as medium).

The last 10 years have been good for investors so the general feeling is that the next 10 years maybe a bit harder going . So 4 % recent return  is a bit on the lower side for a medium risk portfolio , although 'medium risk' is not an exact definition , could be medium-low ; medium high etc .It's not an exact science.

Normally it is best to talk about investment return inflation . So 4% is only 2% real growth ( but better than negative  in a savings account) 

1234John

Thanks for all the replies...
So what I have established....
Is if I am after 4k return on 100k invested my appetite for risk is medium to low.
With this in mind where should I take my 100k after my FA retires? Bank is an easy diy but will return 1-2 percent.... what are my 4 percent options in the current market? Many thanks for your help.

1234John

Ideally DIY options ( if any exisit) 

Aminatidi

1234John said:

Thanks for all the replies...
So what I have established....
Is if I am after 4k return on 100k invested my appetite for risk is medium to low.
With this in mind where should I take my 100k after my FA retires? Bank is an easy diy but will return 1-2 percent.... what are my 4 percent options in the current market? Many thanks for your help.

I don't believe there is a guaranteed 4 percent option with a medium to low appetite for risk.

If there was everyone would do it

You could look at my recent thread about a 40% equity fund to get an idea what it has returned and some estimations as to what it might return in the future but if you need an almost guaranteed 4% come what may you're basically stuck chasing yield and that isn't medium to low risk in my view.

Personally I'd focus on total return and just dip in when you need to draw some.

1234John

Understood! Next question then is there any diy funds I can invest in that I can monitor monthly/weekly for a sensible return? Or is the whole industry structured around the middle men/ladies :-)

Aminatidi

1234John said:

Understood! Next question then is there any diy funds I can invest in that I can monitor monthly/weekly for a sensible return? Or is the whole industry structured around the middle men/ladies :-)

Keep in mind any fund is DIY in so much as you can buy it yourself on a platform that sells it.

For passive (ish) look at HSBC global, Vanguard LifeStrategy, some of the L&G and Architas funds as examples.

For active cautious management the usual suspects tend to be Troy Trojan, Capital Gearing, and Ruffer.

Respectfully I'd focus on your risk profile as if you're looking for 4% with a medium-low level of risk that might tempt you into riskier funds than you might find you can tolerate.

eskbanker

1234John said:
What is your definition of low risk?
A poor interest rate in a savings account = Low / Putting money on the stock market and not ever losing more than 10% of it would equal medium.

Just to pick up on this earlier exchange, I'd suggest that your view of maximum 10% loss as equating to medium risk is out of step with norms and that this would normally be considered low.  Did your FA say anything like that?

When embarking on DIY investing it'll obviously be important to identify a realistic attitude to risk before buying anything, so your aspiration for 4% growth may be compromised if you weren't able to tolerate losses beyond 10%....