IFA Advises Pension Move to True Potential : Thoughts Please?

[Deleted User]

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

How much growth has your IFA delivered so far, GSP? Has he been working for you for a few years?

I’ve had him for just over 3 years, withdrawn £170k and my fund is looking pretty much the same as when I first entered.

Sounds good to be fair, GSP. 
You’ve been taking out £1000 per week and not impacted on the value of your investment, if I understand correctly.

Yes I suppose it works out like that, but it’s been done in about 7 chunks, all without paying tax, so far!

I can’t fault your IFA, to be honest.

Seems the plan was to use TP as a stepping stone and just as well because, whichever portfolio you landed in wouldn’t have supported a drawdown of £170k over three years without denting the residual value (assumed to be £750k from your figures).

If the long term aim is to maintain that level of income and protect the principal; your plan looks to be right on track so far (keep an eye on it).

Lucky you!

BritishInvestor

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

Surely if you are at/in retirement, and one of the main objectives is not to run out of money, how the funds performed in downturns is key? Given that every downturn is subtly different you'd need to trawl a far way back and this can be one of the limitations when using actively managed funds to construct a retirement portfolio.

BritishInvestor

Cus said:

BritishInvestor said:

This is 2020, not the 90s. 

Dont understand what you mean by this.  Do you mean that this what they did do in the 90's but now they don't bother?

If all you have to offer is "managing money" then that's what your focus is going to be on. You could pick the best funds in the world, but if the client has no certainty over whether their funds are going to sustain their desired lifestyle, how much value are you really adding?

cfw1994

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

How much growth has your IFA delivered so far, GSP? Has he been working for you for a few years?

I’ve had him for just over 3 years, withdrawn £170k and my fund is looking pretty much the same as when I first entered.

Sounds good to be fair, GSP. 
You’ve been taking out £1000 per week and not impacted on the value of your investment, if I understand correctly.

Yes I suppose it works out like that, but it’s been done in about 7 chunks, all without paying tax, so far!

I can’t fault your IFA, to be honest.

Seems the plan was to use TP as a stepping stone and just as well because, whichever portfolio you landed in wouldn’t have supported a drawdown of £170k over three years without denting the residual value (assumed to be £750k from your figures).

If the long term aim is to maintain that level of income and protect the principal; your plan looks to be right on track so far (keep an eye on it).

Lucky you!

Sounds good....but perhaps depends on the size of the fund?
Eg, if the fund was £680k, one could pull £170k out as TFLS with zero tax in an instant, never mind 7 tranches.

The question is really around how much he crystallised.   Is the best part of £510k now in a “drawdown” state?

If that has also crept back to £680k (through fund growth), then that £170k growth definitely sounds decent enough.   Of course, that growth will be measured again against the LTA once GSP reaches 75.  Or be drawn & spent before it 

That might make perfect sense if one is nudging the LTA.....but it does raises questions on how future years will be dealt with, when the TFLS option is no longer available.

Cus

BritishInvestor said:

Cus said:

BritishInvestor said:

This is 2020, not the 90s. 

Dont understand what you mean by this.  Do you mean that this what they did do in the 90's but now they don't bother?

If all you have to offer is "managing money" then that's what your focus is going to be on. You could pick the best funds in the world, but if the client has no certainty over whether their funds are going to sustain their desired lifestyle, how much value are you really adding?

Yes, completely agree, the IFA has a much bigger responsibility that solely managing money. I was only detailing that part as I read the thread to be a question on whether paying 0.5% to an IFA for managing money was good value for versus managing it yourself.

GSP

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

How much growth has your IFA delivered so far, GSP? Has he been working for you for a few years?

I’ve had him for just over 3 years, withdrawn £170k and my fund is looking pretty much the same as when I first entered.

Sounds good to be fair, GSP. 
You’ve been taking out £1000 per week and not impacted on the value of your investment, if I understand correctly.

Yes I suppose it works out like that, but it’s been done in about 7 chunks, all without paying tax, so far!

I can’t fault your IFA, to be honest.

Seems the plan was to use TP as a stepping stone and just as well because, whichever portfolio you landed in wouldn’t have supported a drawdown of £170k over three years without denting the residual value (assumed to be £750k from your figures).

If the long term aim is to maintain that level of income and protect the principal; your plan looks to be right on track so far (keep an eye on it).

Lucky you!

Don’t think there was a plan to use TP as a stepping stone. I just added to this thread my experience with them to say I wouldn’t touch them, though that was over 3 years ago we had that experience.

GSP

cfw1994 said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

How much growth has your IFA delivered so far, GSP? Has he been working for you for a few years?

I’ve had him for just over 3 years, withdrawn £170k and my fund is looking pretty much the same as when I first entered.

Sounds good to be fair, GSP. 
You’ve been taking out £1000 per week and not impacted on the value of your investment, if I understand correctly.

Yes I suppose it works out like that, but it’s been done in about 7 chunks, all without paying tax, so far!

I can’t fault your IFA, to be honest.

Seems the plan was to use TP as a stepping stone and just as well because, whichever portfolio you landed in wouldn’t have supported a drawdown of £170k over three years without denting the residual value (assumed to be £750k from your figures).

If the long term aim is to maintain that level of income and protect the principal; your plan looks to be right on track so far (keep an eye on it).

Lucky you!

Sounds good....but perhaps depends on the size of the fund?
Eg, if the fund was £680k, one could pull £170k out as TFLS with zero tax in an instant, never mind 7 tranches.

The question is really around how much he crystallised.   Is the best part of £510k now in a “drawdown” state?

If that has also crept back to £680k (through fund growth), then that £170k growth definitely sounds decent enough.   Of course, that growth will be measured again against the LTA once GSP reaches 75.  Or be drawn & spent before it 

That might make perfect sense if one is nudging the LTA.....but it does raises questions on how future years will be dealt with, when the TFLS option is no longer available.

I still have more uncrystallised than crystallised. My wife can drawdown her fund in 2022 where using personal tax allowance separately potentially gives us £25k tax free.
Will have to look at that aged 75 barrier though thanks.

DT2001

OP - speak to a few local IFA’s and find one you that you are happy with. Have a list of questions beforehand to go through and you can then compare before deciding how you want to proceed.

My MIL’s IFA retired a few years back having sold his business to another IFA. The handover was professional and new terms of business signed. She stayed for a few years until the person she dealt with moved on. As in many aspects of life try and deal with people you trust/get on with.

IFA’s, like all other professions, reflect society, some good some bad.

My requirement of my IFA is strategy first. How do I get to where I want for my retirement without taking more risks than I need to. Peace of mind! When I read about something on one of these forums I can ask him why ‘we’ are not following that approach etc.
The performance of my funds is a means to an end. I reckon I could outperform my IFA’s portfolio however I could lose more or not be in a position to retire/semi retire when I want to.

Do I want to spend time researching every week/month for the next 30 years (take me to 90) to possibly get a better return on my money? (This assumes I have the mental capability long term.) I think 0.5% is reasonable to pay for that especially as OH and I are both self employed with variable earnings/charging retirement plans/IHT considerations all causing tweaks to our strategy.

[Deleted User]

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

ZingPowZing said:

GSP said:

BritishInvestor said:

GSP said:

Joey_Soap said:

I think ZPZ makes an excellent point. Having put your money into some funds that themselves have management, what exactly is your advisor now bringing to the party that is worth £75 a week to you? I know what I believe the answer to be, likely the same as ZPZ.

I suppose he is managing/overseeing the managed funds. Seeing that they are ‘doing the job’.

What is "the job"?

Growing at a reasonable rate compared to other funds.

How much growth has your IFA delivered so far, GSP? Has he been working for you for a few years?

I’ve had him for just over 3 years, withdrawn £170k and my fund is looking pretty much the same as when I first entered.

Sounds good to be fair, GSP. 
You’ve been taking out £1000 per week and not impacted on the value of your investment, if I understand correctly.

Yes I suppose it works out like that, but it’s been done in about 7 chunks, all without paying tax, so far!

I can’t fault your IFA, to be honest.

Seems the plan was to use TP as a stepping stone and just as well because, whichever portfolio you landed in wouldn’t have supported a drawdown of £170k over three years without denting the residual value (assumed to be £750k from your figures).

If the long term aim is to maintain that level of income and protect the principal; your plan looks to be right on track so far (keep an eye on it).

Lucky you!

Don’t think there was a plan to use TP as a stepping stone. I just added to this thread my experience with them to say I wouldn’t touch them, though that was over 3 years ago we had that experience.

Well, take a look a look at what would have happened to your investment over the last three years in any True Potential portfolio
https://www.tpllp.com/true-potential-portfolios/
and thank your lucky stars! There's no way your pot would have furnished £170k TFLS without significant depletion.

TP are noted for incentivising advisers. Are you sure that your adviser is still registered Independent?

BritishInvestor

DT2001 said:

OP - speak to a few local IFA’s and find one you that you are happy with. Have a list of questions beforehand to go through and you can then compare before deciding how you want to proceed.

My MIL’s IFA retired a few years back having sold his business to another IFA. The handover was professional and new terms of business signed. She stayed for a few years until the person she dealt with moved on. As in many aspects of life try and deal with people you trust/get on with.

IFA’s, like all other professions, reflect society, some good some bad.

My requirement of my IFA is strategy first. How do I get to where I want for my retirement without taking more risks than I need to. Peace of mind! When I read about something on one of these forums I can ask him why ‘we’ are not following that approach etc.
The performance of my funds is a means to an end. I reckon I could outperform my IFA’s portfolio however I could lose more or not be in a position to retire/semi retire when I want to.

Do I want to spend time researching every week/month for the next 30 years (take me to 90) to possibly get a better return on my money? (This assumes I have the mental capability long term.) I think 0.5% is reasonable to pay for that especially as OH and I are both self employed with variable earnings/charging retirement plans/IHT considerations all causing tweaks to our strategy.

"My requirement of my IFA is strategy first. How do I get to where I want for my retirement without taking more risks than I need to. Peace of mind!"
Spot on