IFA Advises Pension Move to True Potential : Thoughts Please?

Cus

Prism said:

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 By the sounds of it however, through these 3 and a bit years he has chosen pretty good funds if I have withdrawn £170k and my fund balance is more or less back to where it started.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. 

Agree, the Nasdaq went up 60% during that period, and SMT almost 90%.  Assuming you didn't have all your eggs in one fund, what funds did you have that across all of them the average beat SMT?

GSP

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.

Just watched the first one and will watch others later.  So in the first instance he has suggested two holdings? I have counted mine and have 16.

BritishInvestor

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.

Funds doubling in 3 years is surely is completely the opposite of what Lars is preaching?

cfw1994

Yeah, maybe I looked at the wrong column in my sheet....Sunday night musings, eh  

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby either.

On the view v Lars: he is also talking about the power of compounding, and as you get closer to The Goal, that compounding effect should naturally give something of an uptick or a “hockey stick” bump to the curve (time in the markets, not timing the markets).

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....
FWIW, even in those first two, their is an element of overlap in companies owned within the funds, as their is within the last two.
Sure, not exactly just ”buy the world” that Lars might prefer, but certainly not 16 funds.   

16 funds is, of course, perhaps spreading one’s bets more broadly, but I bet is also the approach taken by many advisors as a way of “maintaining the mystery and value” of the service,  I wonder how the funds that were dropped and switched every year or so have done compared with the ones that replaced them.....

[Deleted User]

cfw1994 said:

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....
 

I don't think there  is any "maybe" about GSPs funds having done well so far under the management of his IFA.
Better to have a lucky general than a brilliant general.

Just as a matter of interest cfw1994, you mention an equal four-way split maintained (presumably) by periodic rebalancing. What difference has that made to the total value over four + years?

GSP

cfw1994 said:

Yeah, maybe I looked at the wrong column in my sheet....Sunday night musings, eh  

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby either.

On the view v Lars: he is also talking about the power of compounding, and as you get closer to The Goal, that compounding effect should naturally give something of an uptick or a “hockey stick” bump to the curve (time in the markets, not timing the markets).

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....
FWIW, even in those first two, their is an element of overlap in companies owned within the funds, as their is within the last two.
Sure, not exactly just ”buy the world” that Lars might prefer, but certainly not 16 funds.   

16 funds is, of course, perhaps spreading one’s bets more broadly, but I bet is also the approach taken by many advisors as a way of “maintaining the mystery and value” of the service,  I wonder how the funds that were dropped and switched every year or so have done compared with the ones that replaced them.....

Thanks. Yes to my untrained eye the ones dropped had performed the worst. Even that knowing it’s a marathon not a sprint, who is to say those dropped funds suddenly wouldn’t turn good?
With the market a bit buoyed again, I can see there are a couple of my holdings reporting negative values, but that is I assume the point of a diversified portfolio, some will buck the trend both ways.

cfw1994

ZingPowZing said:

cfw1994 said:

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....
 

I don't think there  is any "maybe" about GSPs funds having done well so far under the management of his IFA.
Better to have a lucky general than a brilliant general.

Just as a matter of interest cfw1994, you mention an equal four-way split maintained (presumably) by periodic rebalancing. What difference has that made to the total value over four + years?

I've not worried too much about rebalancing.  As a wiser one here once said, "I don't rebalance it generally I just let them run and would only rebalance if they really got out of whack".   Right now, I can see the split ranges from 22.5% to 27.8% - those US/International funds are pulling away.   
I might rebalance that in a month or two, but another option is to let the winners run on......
I have tweaked & adjusted the funds a few times over the years, including shifting the % stored, & that may continue. 
Actually, one advantage I see in our Aviva work scheme is that we 'only' have about 80 funds to chose from.   Makes it that bit easier to look at fact sheets.  & yes, to any financial advisors, I know fact sheets are not the whole story....but they are, IMHO, a decent part of it....

GSP

cfw1994 said:

ZingPowZing said:

cfw1994 said:

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....
 

I don't think there  is any "maybe" about GSPs funds having done well so far under the management of his IFA.
Better to have a lucky general than a brilliant general.

Just as a matter of interest cfw1994, you mention an equal four-way split maintained (presumably) by periodic rebalancing. What difference has that made to the total value over four + years?

I've not worried too much about rebalancing.  As a wiser one here once said, "I don't rebalance it generally I just let them run and would only rebalance if they really got out of whack".   Right now, I can see the split ranges from 22.5% to 27.8% - those US/International funds are pulling away.   
I might rebalance that in a month or two, but another option is to let the winners run on......
I have tweaked & adjusted the funds a few times over the years, including shifting the % stored, & that may continue. 
Actually, one advantage I see in our Aviva work scheme is that we 'only' have about 80 funds to chose from.   Makes it that bit easier to look at fact sheets.  & yes, to any financial advisors, I know fact sheets are not the whole story....but they are, IMHO, a decent part of it....

Sorry, just while we are at this bit, a question. These funds, only started looking at these. Some have fund start dates going back a decade or more. With all the funds knocking around, is it just possible some sort of run their course without much attention paid to and they gradually lose a lot of money before they are pulled. Can they be pulled? All I am saying is how can you be confident your fund is being run to its ‘full potential’. Could be these fund managers have their fingers in a few pies, or just give more attention to those funds that are more lucrative to them perhaps?

cfw1994

GSP said:

cfw1994 said:

ZingPowZing said:

cfw1994 said:

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....

I don't think there  is any "maybe" about GSPs funds having done well so far under the management of his IFA.
Better to have a lucky general than a brilliant general.

Just as a matter of interest cfw1994, you mention an equal four-way split maintained (presumably) by periodic rebalancing. What difference has that made to the total value over four + years?

I've not worried too much about rebalancing.  As a wiser one here once said, "I don't rebalance it generally I just let them run and would only rebalance if they really got out of whack".   Right now, I can see the split ranges from 22.5% to 27.8% - those US/International funds are pulling away.   
I might rebalance that in a month or two, but another option is to let the winners run on......
I have tweaked & adjusted the funds a few times over the years, including shifting the % stored, & that may continue. 
Actually, one advantage I see in our Aviva work scheme is that we 'only' have about 80 funds to chose from.   Makes it that bit easier to look at fact sheets.  & yes, to any financial advisors, I know fact sheets are not the whole story....but they are, IMHO, a decent part of it....

Sorry, just while we are at this bit, a question. These funds, only started looking at these. Some have fund start dates going back a decade or more. With all the funds knocking around, is it just possible some sort of run their course without much attention paid to and they gradually lose a lot of money before they are pulled. Can they be pulled? All I am saying is how can you be confident your fund is being run to its ‘full potential’. Could be these fund managers have their fingers in a few pies, or just give more attention to those funds that are more lucrative to them perhaps?

I'm sure funds can be pulled....but when you realise many are managing several hundred million £££s, you start to see they are big business for <Blackrock/Bailie Gifford/etc>.   More often than not, one fund will have a team of fund managers working on it, especially the larger funds.
Sure, fund managers will move around - they are all humans, eh! -  but as you may have gleaned from Lars, it is very VERY unlikely you will get the brilliant fund manager for multiple years.   Followers of Lindsell Train or Woodford are examples where you could get lucky....or could get caught out (respectively!).   I am sure there are many here who have done very well out of some of those, & as I intimated above, whilst I like the Lars approach of "buy the world, as cheaply as you can", I also personally like a bit of a punt with some of the funds - hence my American selection.   Not entirely at odds with what he says, but each to their own!
Does one fund manager take part in many fund "pies", as you suggest?   I have no idea.  Maybe....
Maybe you should look into "fund of funds" options.

GSP

cfw1994 said:

GSP said:

cfw1994 said:

ZingPowZing said:

cfw1994 said:

Taken X out in 3 tranches which left Y of the original, back to approx Y+(3/5)X...not quite so ballsy, but not too shabby

I’ve mentioned the funds previously here: split 4 ways equally between an international fund, a US fund (I’m a worker in and believer of tech funds, which has certainly given the boost to my numbers), an Aviva “pre-retirement fixed income” which has done surprisingly well and some gilts.  I don’t see me doing much to those when I enter the decumulation phase....

I don't think there  is any "maybe" about GSPs funds having done well so far under the management of his IFA.
Better to have a lucky general than a brilliant general.

Just as a matter of interest cfw1994, you mention an equal four-way split maintained (presumably) by periodic rebalancing. What difference has that made to the total value over four + years?

I've not worried too much about rebalancing.  As a wiser one here once said, "I don't rebalance it generally I just let them run and would only rebalance if they really got out of whack".   Right now, I can see the split ranges from 22.5% to 27.8% - those US/International funds are pulling away.   
I might rebalance that in a month or two, but another option is to let the winners run on......
I have tweaked & adjusted the funds a few times over the years, including shifting the % stored, & that may continue. 
Actually, one advantage I see in our Aviva work scheme is that we 'only' have about 80 funds to chose from.   Makes it that bit easier to look at fact sheets.  & yes, to any financial advisors, I know fact sheets are not the whole story....but they are, IMHO, a decent part of it....

Sorry, just while we are at this bit, a question. These funds, only started looking at these. Some have fund start dates going back a decade or more. With all the funds knocking around, is it just possible some sort of run their course without much attention paid to and they gradually lose a lot of money before they are pulled. Can they be pulled? All I am saying is how can you be confident your fund is being run to its ‘full potential’. Could be these fund managers have their fingers in a few pies, or just give more attention to those funds that are more lucrative to them perhaps?

I'm sure funds can be pulled....but when you realise many are managing several hundred million £££s, you start to see they are big business for <Blackrock/Bailie Gifford/etc>.   More often than not, one fund will have a team of fund managers working on it, especially the larger funds.
Sure, fund managers will move around - they are all humans, eh! -  but as you may have gleaned from Lars, it is very VERY unlikely you will get the brilliant fund manager for multiple years.   Followers of Lindsell Train or Woodford are examples where you could get lucky....or could get caught out (respectively!).   I am sure there are many here who have done very well out of some of those, & as I intimated above, whilst I like the Lars approach of "buy the world, as cheaply as you can", I also personally like a bit of a punt with some of the funds - hence my American selection.   Not entirely at odds with what he says, but each to their own!
Does one fund manager take part in many fund "pies", as you suggest?   I have no idea.  Maybe....
Maybe you should look into "fund of funds" options.

The more I read into this, the more uncomfortable I become. Different approaches, punts, could get lucky or not?