IFA Advises Pension Move to True Potential : Thoughts Please?

BritishInvestor

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

"They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies."
Any idea why anyone would do this in 2020?

cfw1994

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

GSP

cfw1994 said:

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

No, still to watch them yet, but will do. By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.

BritishInvestor

GSP said:

cfw1994 said:

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

No, still to watch them yet, but will do. By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.

"he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started."
Three years is too short a time period to tell, but if he was able to pick "winning" funds or stocks don't you think he would be doing another job?

[Deleted User]

GSP said:

cfw1994 said:

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

No, still to watch them yet, but will do. By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.

Yes, your IFA has made a perfectly respectable start for you, GSP. 
Compared to where you now would be positioned in TP.

OldMusicGuy

BritishInvestor said:

"They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies."
Any idea why anyone would do this in 2020?

Err yes, I used to do that as an industry analyst. Some of my clients were buy side analysts working for large investment companies and they would also do the same. They do that to understand what is happening in various sectors of global economies and also the companies that make up significant parts of their holdings. A local IFA reading a few newsfeeds is not in the same league. They don't have the time, knowledge or contacts to do any detailed analysis of what is really happening in any sector of any economy.

BritishInvestor

OldMusicGuy said:

BritishInvestor said:

"They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies."
Any idea why anyone would do this in 2020?

Err yes, I used to do that as an industry analyst. Some of my clients were buy side analysts working for large investment companies and they would also do the same. They do that to understand what is happening in various sectors of global economies and also the companies that make up significant parts of their holdings. A local IFA reading a few newsfeeds is not in the same league. They don't have the time, knowledge or contacts to do any detailed analysis of what is really happening in any sector of any economy.

By the time that analysts have done their analysing, the market will have moved. Computers are monitoring the markets in real time - humans attempting to match this are going to struggle.

OldMusicGuy

BritishInvestor said:

By the time that analysts have done their analysing, the market will have moved. Computers are monitoring the markets in real time - humans attempting to match this are going to struggle.

Of course there's a lot of algo trading going on. But investment managers are making longer term buy/sell/hold decisions and also trying to call the market before it moves, which computers can't do (yet). That's why they do all this stuff. For example, one of my clients made a successful but very contrarian shorting call on a big tech company based on their and my analysis. Many ordinary people believe IFAs are doing this kind of thing, which of course they are not.  

cfw1994

GSP said:

cfw1994 said:

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

No, still to watch them yet, but will do. By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.

Maybe.  Maybe not.
Apr16-Apr19, ignoring investments, my funds doubled in value.....that's what a well invested bear market can do for you!
Haven't checked that since, but in the past 13 months, I've taken out a large set of TFLS (LTA avoidance) over a few tranches (much reinvested elsewhere), and the fund is still above what it was when I started.       Did I chose "pretty good funds" ?

Again: invest 6 minutes of your time on Lars' first video.

Prism

cfw1994 said:

GSP said:

cfw1994 said:

GSP said:

OldMusicGuy said:

GSP said:

Thanks. You would ‘hope’ that the IFA is exposed to more dealings, more information, more knowledge who to invest with ‘running things’ for other customers too day to day. Have their finger on the pulse so to speak. From that, I would guesstimate they are best placed to make a decision like that perhaps.
Yes, sorry just my lack of knowledge here as I was transferred and straight into drawdown on pot. People putting money into dc schemes are already invested.

That's where you are wrong. IFAs are NOT investment managers. They do not attend company earnings calls, they do not have any insight into economic forecasts, they do not have their finger on the pulse of the economy or individual companies. They just know what investment choices are out there and they know how to recommend some that meet your risk profile. They may also be able to help with retirement planning, pension consolidation and things like that. They provide a helpful service but nothing that IMO justifies their fees. 

In my annual review I do receive an assessment how the year has gone, the possible outlook for the next year or two and reasoning why recommendations why some funds need to be replaced. Isn’t this a forecast and action of sorts to get through possible challenges ahead?

So each year they change funds?  Sounds more like a justification for their fee to me.
Have you watched the Kroijer videos?   

No, still to watch them yet, but will do. By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.

Maybe.  Maybe not.
Apr16-Apr19, ignoring investments, my funds doubled in value.....that's what a well invested bear market can do for you!
Haven't checked that since, but in the past 13 months, I've taken out a large set of TFLS (LTA avoidance) over a few tranches (much reinvested elsewhere), and the fund is still above what it was when I started.       Did I chose "pretty good funds" ?

Again: invest 6 minutes of your time on Lars' first video.

Yes I would say you did choose some pretty good funds since the world and US index funds only returned about 50% over that period.