IFA Advises Pension Move to True Potential : Thoughts Please?

GSP

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.

Interesting post. I have no knowledge as I have only ever been with one IFA from the outset, but your mention of some good, some bad IFA’s. It does seem like pot luck choosing one, like walking into a shop and who serves you. You can receive different experiences and advice from the same shop.
Your last paragraph is very true. You are in retirement and want to enjoy it how best you can so if you can absorb advisor fees why not. I have read posts on spreadsheets and things for planners where the level of detail is so anal with many metrics. But that’s perhaps because they are the ones looking after the investments they have chosen. They can’t even have a day off holiday looking at numbers in case something needs urgent action.

GSP

ZingPowZing said:

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?

As I say it was over 3 years ago, but shortly after we came away from TP I was pleased I hadn’t gone with them. Perhaps there was another reason, though I really can’t remember.

BritishInvestor

GSP said:

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.

Interesting post. I have no knowledge as I have only ever been with one IFA from the outset, but your mention of some good, some bad IFA’s. It does seem like pot luck choosing one, like walking into a shop and who serves you. You can receive different experiences and advice from the same shop.
Your last paragraph is very true. You are in retirement and want to enjoy it how best you can so if you can absorb advisor fees why not. I have read posts on spreadsheets and things for planners where the level of detail is so anal with many metrics. But that’s perhaps because they are the ones looking after the investments they have chosen. They can’t even have a day off holiday looking at numbers in case something needs urgent action.

"They can’t even have a day off holiday looking at numbers in case something needs urgent action."
Given a "typical" retirement journey of (hopefully) 30-40 years, I'm not sure what might need urgent attention? Your objectives are unlikely to have changed dramatically, nor your desired spending. The sustainability of your plan also is unlikely to change dramatically, given that it should be based on previous poor market outcomes.

"But that’s perhaps because they are the ones looking after the investments they have chosen."
Probably worth taking the focus away from the investments. Other than annual(?) rebalancing, what else needs doing (given a simple, low cost, evidence-based portfolio). It's up to you how complex you feel you need to make it. 

Prism

GSP said:

Your last paragraph is very true. You are in retirement and want to enjoy it how best you can so if you can absorb advisor fees why not. I have read posts on spreadsheets and things for planners where the level of detail is so anal with many metrics. But that’s perhaps because they are the ones looking after the investments they have chosen. They can’t even have a day off holiday looking at numbers in case something needs urgent action.

I won't be using an IFA during retirement but I do intend on putting together a retirement plan that is resilient enough to only require one set of decisions each year - how much to withdraw, rebalancing, tax issues. I imagine that is all an IFA would need to do each year too for each customer, unless there was a change in the customer circumstances and they required additional advice. Plenty of time for holidays.

GSP

Prism said:

GSP said:

Your last paragraph is very true. You are in retirement and want to enjoy it how best you can so if you can absorb advisor fees why not. I have read posts on spreadsheets and things for planners where the level of detail is so anal with many metrics. But that’s perhaps because they are the ones looking after the investments they have chosen. They can’t even have a day off holiday looking at numbers in case something needs urgent action.

I won't be using an IFA during retirement but I do intend on putting together a retirement plan that is resilient enough to only require one set of decisions each year - how much to withdraw, rebalancing, tax issues. I imagine that is all an IFA would need to do each year too for each customer, unless there was a change in the customer circumstances and they required additional advice. Plenty of time for holidays.

Sorry, perhaps I have over stated this somewhat. I think I got confused with people with planner’s doing monthly adjustments or less. I am sure if I was doing my own investing though, I would keep half an eye open on things rather than something happening and destroying my fund in some way.

[Deleted User]

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."

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?

There is no shortage of volunteers to look after your money, if that's the route you want to take, though. 

GSP

ZingPowZing said:

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."

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?

There is no shortage of volunteers to look after your money, if that's the route you want to take, though. 

You may be comfortable and savvy looking after your money, but remember people are not you and can imagine there is a wide range of feeling and competencies across the whole spectrum.
Personally, even now I look at the names of the holdings I’m invested in, and it mostly goes over the top of my head. I really would not have a clue where to start, what to do and when, have that knowledge to change things when I should. I would never sleep. I am quite happy for an ‘expert’ to make the decisions.
After being made redundant near 55 and could not get another job, I had a db pension but this would have suffered high penalties drawing before 60 and would have been c£15k p.a. Being presented with a decent CETV figure and that potential what we could draw, in my case it was a no brainer to transfer.
While a db pension does go up, what is the point of going from £15k-£20k to £45k with inflationary increases by the time you are 90+ and unable to spend it, perhaps.
Everyone has different circumstances, understanding, capabilities, journey’s.

[Deleted User]

GSP said:

ZingPowZing said:

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."

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?

There is no shortage of volunteers to look after your money, if that's the route you want to take, though. 

You may be comfortable and savvy looking after your money, but remember people are not you and can imagine there is a wide range of feeling and competencies across the whole spectrum.
Personally, even now I look at the names of the holdings I’m invested in, and it mostly goes over the top of my head. I really would not have a clue where to start, what to do and when, have that knowledge to change things when I should. I would never sleep. I am quite happy for an ‘expert’ to make the decisions.
After being made redundant near 55 and could not get another job, I had a db pension but this would have suffered high penalties drawing before 60 and would have been c£15k p.a. Being presented with a decent CETV figure and that potential what we could draw, in my case it was a no brainer to transfer.
While a db pension does go up, what is the point of going from £15k-£20k to £45k with inflationary increases by the time you are 90+ and unable to spend it, perhaps.
Everyone has different circumstances, understanding, capabilities, journey’s.

Yes, that's true, GSP.
And your adviser looks to have a made a decent start with your "pot." And it's a beautiful day..

GSP

ZingPowZing said:

GSP said:

ZingPowZing said:

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."

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?

There is no shortage of volunteers to look after your money, if that's the route you want to take, though. 

You may be comfortable and savvy looking after your money, but remember people are not you and can imagine there is a wide range of feeling and competencies across the whole spectrum.
Personally, even now I look at the names of the holdings I’m invested in, and it mostly goes over the top of my head. I really would not have a clue where to start, what to do and when, have that knowledge to change things when I should. I would never sleep. I am quite happy for an ‘expert’ to make the decisions.
After being made redundant near 55 and could not get another job, I had a db pension but this would have suffered high penalties drawing before 60 and would have been c£15k p.a. Being presented with a decent CETV figure and that potential what we could draw, in my case it was a no brainer to transfer.
While a db pension does go up, what is the point of going from £15k-£20k to £45k with inflationary increases by the time you are 90+ and unable to spend it, perhaps.
Everyone has different circumstances, understanding, capabilities, journey’s.

Yes, that's true, GSP.
And your adviser looks to have a made a decent start with your "pot." And it's a beautiful day..

Thanks. I know we have been lucky so far in these 3 bit years. Despite all the things happening, covid, brexit etc it really is weird in a way that things don’t look “too bad”. I am sure however that these are the ‘good times’, there is a lot of choppy water to go through yet, and that’s without the unforeseen.
Yes, a very decent day out there. Make the most of as it will change, just like investing!

Notepad_Phil

GSP said:

Prism said:

GSP said:

Your last paragraph is very true. You are in retirement and want to enjoy it how best you can so if you can absorb advisor fees why not. I have read posts on spreadsheets and things for planners where the level of detail is so anal with many metrics. But that’s perhaps because they are the ones looking after the investments they have chosen. They can’t even have a day off holiday looking at numbers in case something needs urgent action.

I won't be using an IFA during retirement but I do intend on putting together a retirement plan that is resilient enough to only require one set of decisions each year - how much to withdraw, rebalancing, tax issues. I imagine that is all an IFA would need to do each year too for each customer, unless there was a change in the customer circumstances and they required additional advice. Plenty of time for holidays.

Sorry, perhaps I have over stated this somewhat. I think I got confused with people with planner’s doing monthly adjustments or less. I am sure if I was doing my own investing though, I would keep half an eye open on things rather than something happening and destroying my fund in some way.

There is always a 'something happening'

Provided people have invested their money sensibly and within their risk tolerance then the best thing to do is to ignore the outside noise and keep to the plan. A lot of people sold down when covid hit the markets earlier this year because they thought something was happening and was about to destroy their fund, I don't think many will be relishing their decision unless possibly they were solely invested in something like the FTSE 100 (which I think most people here would agree is not a sensible way to invest).