IFA Advises Pension Move to True Potential : Thoughts Please?

Cus

I would happily pay someone a small fraction of my work earnings to do my job for me. 😁

DT2001

ZingPowZing said:

I very much like the advice to find and stick with people you get along with and pretty much disagree with the rest of it. Peace of mind to me comes from control of my fortune. In many ways, the senior years are the best for that focus and my generation has been very lucky, pensioners were the relatively poor of yesterday's society. 
Having been one myself, I understand why people who get to c fifty-five on the assumption that someone else would manage their retiement provision may not want to engage with pension freedom. Many people value a quiet life. Many have better things to do. But that begs a question of them, Why then leave the safety of your existing provision only to hand on responsibility straight away to an adviser and/or fund manager

IMO I control my fortune, not to the same degree as you obviously do and need to. I choose my IFA, I set my risk tolerance and have the option to influence holdings. If my IFA can generate enough income for us to achieve our ‘number’ then that is good.
If the aim is to maximise income then there is the option to DIY using some of your time accordingly.
I have invested less time but I have chosen an IFA not an FA or a wealth manager. In addition I vetted a number before going with my current one and knew beforehand the ongoing level of fees appropriate to our circumstances.

I am unsure of what you mean by the last sentence above. Are you saying if you transfer out of a scheme (DB or DC) that is overseen by professionals to one that you can control why then hand it over? An ex colleague of mine took the money offered for his DB scheme (I have kept mine) and handed it over but it allowed him to take a larger lump sum to help his only child get on the property ladder. The flexibility was important not the safety of income.

GSP

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

AlanP_2

For me it was reading on here and the monevator.com website supplemented by the Tim Hale book, now I am starting to think about taking out as opposed to paying in I have widened my reading.

ian16527

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

I have started managing my own small pot, I had 5 small DC pensions combined by an IFA into a personal pension when in reality I should have done it myself, after reading this forum. I am using Vanguard LS funds, HSBO Balanced fund and a bit in Fundsmith. I am no expert and have a 50/50 risk profile so like steady away funds - no frills or star performers. 
I dont have the experience to pick a portfolio of separate funds/EFT's so am sticking with the funds of funds type mainly, but aiming for 65/35 shares/bonds balance at the moment.
I am wondering how to start to drawdown next year, and whether to keep some in cash or perhaps a VLS20 to draw my yearly pension from, and adding this every year from the other funds to keep the percentage the same.
I have read the John Edwards books recommended on here, free on Kindle unlimited or a couple of pounds on amazon.
You could always use a part of your pot in a stand alone SIPP to manage yourself to see how you go to give yourself a bit of confidence in the process


 

BritishInvestor

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

You continue to start with the investments. Why not move to a #2 mindset?

LHW99

BritishInvestor said:

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

You continue to start with the investments. Why not move to a #2 mindset?

IMO it does depend a little on your age.

If you are young with plenty of time ahead of you, then I would:

1. Find out as much as possible about my autoenrollment pension (a majority of employees should have one by now. Look at what I am invested in, what else there is and at least "actively" choose the default rather than finding out what it is a year before retirement.

2. If I also had a bit of spare cash each month and had the basic emergency pot put away, think about taking out a monthly investment plan with a fund that has had a long track record, and watch what happens over the next 10 years.

3. Read a bit about the types of investments that are out there, and keep informed of changes in tax etc.

Then when I had a 5 figure pot, even if I chose to let an IFA manage it because I really wasn't interested - I would have the background knowledge to have a reasonable conversation about his suggestions.

If you plan to retire in a year's time, its either take a crash course or make absolutely sure you have an IFA you trust and can work with.

If you are lucky enough to have a DB pension in this case, IMO you are almost certainly best to stick with it and forget about investing.

BritishInvestor

LHW99 said:

BritishInvestor said:

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

You continue to start with the investments. Why not move to a #2 mindset?

IMO it does depend a little on your age.

If you are young with plenty of time ahead of you, then I would:

1. Find out as much as possible about my autoenrollment pension (a majority of employees should have one by now. Look at what I am invested in, what else there is and at least "actively" choose the default rather than finding out what it is a year before retirement.

2. If I also had a bit of spare cash each month and had the basic emergency pot put away, think about taking out a monthly investment plan with a fund that has had a long track record, and watch what happens over the next 10 years.

3. Read a bit about the types of investments that are out there, and keep informed of changes in tax etc.

Then when I had a 5 figure pot, even if I chose to let an IFA manage it because I really wasn't interested - I would have the background knowledge to have a reasonable conversation about his suggestions.

If you plan to retire in a year's time, its either take a crash course or make absolutely sure you have an IFA you trust and can work with.

If you are lucky enough to have a DB pension in this case, IMO you are almost certainly best to stick with it and forget about investing.

"IMO it does depend a little on your age."
Yes I agree, but GSP is near/at/in retirement IIRC.

OldMusicGuy

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

You read these books:
DIY Simple Investing: A Guide to Simple but Effective Low Cost Investing by John Edwards
Investing Demystified by Lars Kroijer

You spend time on the Monevator website and watch some PensionCraft videos. You read some helpful threads on here (like jamesd's thread on safe withdrawal rates). Then you make some simple investment choices appropriate to your risk profile and pension objectives. You keep it simple and save yourself a fortune in IFA fees. I know, because I've done it. I had no investment knowledge five years ago, now I manage my own DC pot (and I do not have the security of a DB pension). 

GSP

OldMusicGuy said:

GSP said:

I asked earlier but didn’t get a response if someone could please oblige.
Say if you had a dc pot containing x amount, had come up to the time you could withdraw it. What would be the very first steps you do to get invested, or rather starting from scratch (as its probably already of sorts invested anyway), and get into something you want to manage.
Are there good books to read, a beginner’s/idiot’s guide to investing?
I keep seeing messages about managing your own, looking after your own money, but to do that how do you get to that level and have the confidence to do that from zero. The attraction of an IFA is that it comes ‘ready packaged’. How do you get to something more like their level in a short time if they have taken many years to get there?

You read these books:
DIY Simple Investing: A Guide to Simple but Effective Low Cost Investing by John Edwards
Investing Demystified by Lars Kroijer

You spend time on the Monevator website and watch some PensionCraft videos. You read some helpful threads on here (like jamesd's thread on safe withdrawal rates). Then you make some simple investment choices appropriate to your risk profile and pension objectives. You keep it simple and save yourself a fortune in IFA fees. I know, because I've done it. I had no investment knowledge five years ago, now I manage my own DC pot (and I do not have the security of a DB pension). 

Do you have any nagging doubts your choices of holdings have been the right ones with so many out there? Thanks for the titles.