Portfolio changes

Stargunner

johnnyren said:

I transferred on June 17 ,   he took 8000 for the permissions and I've withdrawn 8000,    I'm sitting with just under 458 000 at present ,      so not very well 

On your opening post you said your sipp was sitting at £470,000, but on this one you are saying £458,000. If it is £470,000 then your portfolio would have returned you a bit more than I previously quoted 

[Deleted User]

So, what is the fixed income (bond) percentage for this portfolio? What kind of bonds predominate? What is the home bias? What is the total cost? What is the expected return? Your IFA should give you all this info.  

You can also figure it out but it takes googling and doing a bit of work with a spreadsheet.

My guess is that the expected return is very low.  And some of these funds are kinda puzzling for someone who has not retired yet. 

Also, putting money into a portfolio then changing everything after 2 years because you are not happy with the return is usually a bad approach.  Its a bit like when you keep changing lanes in a traffic jam on M6. If you are not happy with the asset allocation, advice or investment principles that were used, that would be a good reason to change everything. Rushing from growth to a very conservative allocation begs the question !!!!!! was he thinking 2 years ago. 

I would ask your IFA lots of questions before doing anything. 

BritishInvestor

johnnyren said:

BritishInvestor said:

johnnyren said:

 Hi 
        Just had my porfolio review with my ifa which has resulted him in recommending a number of changes  now proposing , 
14.29 brewin dolphin mps income 
14.29 fei hybrid standard life risk level 2 medium term
14.29 hsbc global asset mgt conservative portfolio c acc
14.29 lion trust fund passive moderate s acc
14.28lion trust fund sustainable future defensive managed 2 Inc
14.28 rlum (cis) Ltd sustainable managed growth trust c acc
14.28 vanguard investments life strategy 40% equity a acc
The sipp is sitting at 470 000,       any views on how it looks appreciated 
        Thanks 

It looks like a postman service where your postie delivers various reports and attempts to show value by shuffling funds. Did you manage to stay awake?

Long enough for him to say it will do ok,     you don't agree ?

In the absence of a rigorous financial/retirement planning exercise, which from the information you've provided I'm 99% you haven't been through, impossible to say.

g002ahe

The IFA probably has set portfolios for each risk level. They have chosen one for you that they believe matches your attitude to risk. Of course, less risk = less reward. Unfortunately It has to be like that.

Many "beginner" DIY investors do a similar thing themselves, for example opting for Vanguard LifeStrategy product that meets their needs. You only need one fund for this approach. and the charges can work out really low.

Will the related lifestrategy product perform better than some made up portfolio chosen by your IFA? In my opinion probably yes.
The one certainty is that the charges be an order or two of magnitude lower!

BritishInvestor

g002ahe said:

The IFA probably has set portfolios for each risk level. They have chosen one for you that they believe matches your attitude to risk. Of course, less risk = less reward. Unfortunately It has to be like that.

Many "beginner" DIY investors do a similar thing themselves, for example opting for Vanguard LifeStrategy product that meets their needs. You only need one fund for this approach. and the charges can work out really low.

Will the related lifestrategy product perform better than some made up portfolio chosen by your IFA? In my opinion probably yes.
The one certainty is that the charges be an order or two of magnitude lower!

"They have chosen one for you that they believe matches your attitude to risk"
In the absence of a financial plan, surely only half the job has been done?

johnnyren

Stargunner said:

johnnyren said:

I transferred on June 17 ,   he took 8000 for the permissions and I've withdrawn 8000,    I'm sitting with just under 458 000 at present ,      so not very well 

On your opening post you said your sipp was sitting at £470,000, but on this one you are saying £458,000. If it is £470,000 then your portfolio would have returned you a bit more than I previously quoted 

Hi ,  to be precise and I first transferred my sum was 466 000 ,     now it's sitting at 458 000,     he took 8000 for the permissions and I withdrew 8000 pounds