Portfolio changes

johnnyren

ZingPowZing said:

That's good.

Phew a bit of good news at last ,   I might get a night's sleep now lol 

dunstonh

TP do offer a more limited option for IFAs.   I don't know of any IFA firms personally that use it.    Most I know use one of the two big software providers.  TP don't phone me any more as I told the lady exactly what I thought of their proposition.

TP are on a mass drive to get IFA firms converted though (they are not the only ones).  So just be on guard that you dont find this is a staged process.

JohnWinder

Mmmm. Tres difficile. Not many lines to read between here, but my sense is that you're in the uncomfortable position of doubting your advisor, or worse, and feel in the dark at the same time.

For a start, while I try not to be critical about your advisor please don't read criticism into my comments as I'm more in the dark about your affairs than you are.

Your proposed portfolio could be just what you need, perfectly matching your tolerance of a portfolio with risk, with the returns you can accept. Indeed, your previous holdings may have been also good, but you're considering abandoning them before they've had a decent chance to show their mettle. A good strategy is to thoughtfully construct a portfolio, and then (upper case) stick to it; a plan can't deliver the goods if you dump it. Of course, there may be a better plan available, but are you choosing one, and how many times are you going change plan?

Next, why were there so many funds in your list? Several of them appear to have holdings (stocks from around the world, and bonds from governments and businesses) which could have been picked up with one fund, and probably at less cost than the ones you listed. Why wasn't the simpler choice offered? That's the second question for you IFA, and don't accept 'diversification' as an answer unless it is explained which risk is being diversified and can't be diversified with one or two funds instead of 5 or 6. Yes, one of those funds has 5% in real estate, which a single stock and bond fund wouldn't, but how much difference is 5% or one of 6 funds going to make to your financial position? That could be Q3.

Unfortunately, it's likely that some customers believe that if it's complex rather than dead simple then it's worth paying a large amount for. And even if that's not so, it would be enough for some IFA's to believe that it's so to make them choose the complex over the simple. Commonly we get what we pay for, but there's a half-truth in investing that 'you get what you don't pay for' because any cost you pay is not being invested for your future but someone else's. So try to keep costs down especially, because of the effect of compounding, if your investment horizon is 25 years which yours is.

What to do? Trust him as you should be able to do, and resume normal living; or do some reading so you can more knowledgeably engage and work with someone who can help you in important ways?  Monevator isn't too taxing, and the Bogleheads wiki is a mine of information.

jimjames

ZingPowZing said:

Concerning if you mean True Potential.

Can you explain? It doesn't really help with a comment like that and no explanation

[Deleted User]

jimjames said:

ZingPowZing said:

Concerning if you mean True Potential.

Can you explain? It doesn't really help with a comment like that and no explanation

True Potential portfolios have been running five years, showing decent appreciation in the first and second years with lacklustre performance since. I fear TPs portfolios will continue to underperform, partly because they are made up of funds run by its investment partners (reputable names but a further layer of management charges below the line) and partly because the underlying investments themselves are constantly being shuffled between portfolios for risk tolerance considerations (and I believe there are transaction charges for those). 

True Potential's website speaks only of continued success, and it continues to be very successful in grabbing an increasing share of the market. Moreover, its appeal is to clients who value simplicity, they can see how much their investments are worth in one figure, as if that corresponds to "total control at your fingertips."  

There are reports of advisers offered big incentives to bring clients, so I was concerned that johnnyren may have found himself in the process of having his SIPP finessed over to True Potential.

planteria

johnnyren said:

planteria said:

it looks overly diversified and very cautious to me..
it makes sense that you're looking to retire in 4 years, as though i'm not familiar with some of those funds and you'd need to take time to understand them all properly, it feels as though his main approach is to try to avoid losing money. 
perhaps it's worth taking ZPZ's last sentence to heart and selecting a diversified, perhaps defensive, fund yourself.
we're in a period of big changes, i'd be trying to benefit from the changes rather than holding such a diversified pension pot, accepting that my risk tolerance could be off your IFAs scale.

Thanks for the reply ,   I'm afraid I wouldn't know where to start in selecting a fund for myself ,   I do agree that the problem seems to be excess caution ,   maybe a chat with him again to get things moving a bit 

i would take some time to read up re various funds, look at what is in them, and consider their track records.