When to diversify a pension?

QrizB

WSB said:

Going back to performance though, if the fund was worth £288K in 31/12/18 (NB: I put in £12K per year) and now (just over 2.5 years later) it's worth £530K, is that not good?  Or am  I missing the point.

This bit is puzzling me and I don't think anyone else has dug into it yet.

On WSB's figures, his investment is up ~60% since Dec 2018, but the chart at Trustnet shows only ~30% growth from that date (which was a bit of a low point). Is there something else that makes WSB's current value so much higher than you would expect from the chart?

The Global Equities benchmark is up ~40% over the same period, which I guess is why no-one is very impressed by the fund's performance!

Diplodicus

WSB said:

Thanks pip895. I will look into that.

The SJP advisor did say that moving to the multi fund product, the fees were a bit higher (can't remember off hand) but there would be no dip in the transfer value.
So, higher than 1.81 TER but the TER may not truly reflect the aggregate of management fees (discussed above). Definitely something to straighten out with your adviser before making your decision.

I don't want to be hands on with this investment (although I probably should be).  Just want to set it up and leave it alone.
Doable.
 I guess having the money in a number of funds would help with that.
The tradeoff is performance, if your investments are facing both ways.

Maybe I should get an IFA involved to help me out but I've never trusted them in the past.  Always get the impression they're trying to steer in in a direction where they make most commission.
A healthy outlook. If you must engage with an adviser, IFA or FA,  proceed on the assumption that the adviser advises what is beneficial to himself or herself. 

I don't think you need a financial adviser at all but, if you decide that you do, don't be railroaded into the FA Bad/ IFA Good dichotomy, promoted on this board.

JohnWinder

Albermarle said:

IFA's have not been able to earn any commission for some years .

They charge for their time , either on a one off basis , or an ongoing basis ( presumably like with SJP but probably cheaper)

Or do they charge for the service they provide? One would need to know an hourly rate and how many hours they worked to say they charged by their time, I think. Such figures would be revealing.

Albermarle

JohnWinder said:

Albermarle said:

IFA's have not been able to earn any commission for some years .

They charge for their time , either on a one off basis , or an ongoing basis ( presumably like with SJP but probably cheaper)

Or do they charge for the service they provide? One would need to know an hourly rate and how many hours they worked to say they charged by their time, I think. Such figures would be revealing.

Yes OK, to be more accurate they charge for the service they provide .

cfw1994

Diplodicus said:

WSB said:

Thanks pip895. I will look into that.

The SJP advisor did say that moving to the multi fund product, the fees were a bit higher (can't remember off hand) but there would be no dip in the transfer value.
So, higher than 1.81 TER but the TER may not truly reflect the aggregate of management fees (discussed above). Definitely something to straighten out with your adviser before making your decision.

I don't want to be hands on with this investment (although I probably should be).  Just want to set it up and leave it alone.
Doable.
 I guess having the money in a number of funds would help with that.
The tradeoff is performance, if your investments are facing both ways.

Maybe I should get an IFA involved to help me out but I've never trusted them in the past.  Always get the impression they're trying to steer in in a direction where they make most commission.
A healthy outlook. If you must engage with an adviser, IFA or FA,  proceed on the assumption that the adviser advises what is beneficial to himself or herself. 

I don't think you need a financial adviser at all but, if you decide that you do, don't be railroaded into the FA Bad/ IFA Good dichotomy, promoted on this board.

The "FA Bad/ IFA Good dichotomy" is broadly right, surely.....unless the FA can meet all your needs with their fund choices, AND are cheaper.  
If they cost the same, or indeed cost more (as seen in another thread re: Quilter, & as SJP so often illustrate), then why on earth would you remain with a restricted advisor?

Lay out your reasoning for why FAs are a good choice versus IFAs!

Diplodicus

cfw1994 said:

Diplodicus said:

WSB said:

Thanks pip895. I will look into that.

The SJP advisor did say that moving to the multi fund product, the fees were a bit higher (can't remember off hand) but there would be no dip in the transfer value.
So, higher than 1.81 TER but the TER may not truly reflect the aggregate of management fees (discussed above). Definitely something to straighten out with your adviser before making your decision.

I don't want to be hands on with this investment (although I probably should be).  Just want to set it up and leave it alone.
Doable.
 I guess having the money in a number of funds would help with that.
The tradeoff is performance, if your investments are facing both ways.

Maybe I should get an IFA involved to help me out but I've never trusted them in the past.  Always get the impression they're trying to steer in in a direction where they make most commission.
A healthy outlook. If you must engage with an adviser, IFA or FA,  proceed on the assumption that the adviser advises what is beneficial to himself or herself. 

I don't think you need a financial adviser at all but, if you decide that you do, don't be railroaded into the FA Bad/ IFA Good dichotomy, promoted on this board.

The "FA Bad/ IFA Good dichotomy" is broadly right, surely.....unless the FA can meet all your needs with their fund choices, AND are cheaper.  
If they cost the same, or indeed cost more (as seen in another thread re: Quilter, & as SJP so often illustrate), then why on earth would you remain with a restricted advisor?

Lay out your reasoning for why FAs are a good choice versus IFAs!

I can't. That would be like recommending red pills leading to a lifetime dependency, rather than blue. 

MaxiRobriguez

Half a million pot at 50, with continued contributions for the next ten years at 14% of what is likely to be a relatively healthy salary if you moved into the role after being a director will probably mean you end up with a pot that gets somewhere relatively close to the LTA.

Well done. Yes, you could have got there faster if you weren't with SJP and had reduced costs over lifetime but you can't change the past and frankly it hasn't really mattered for you as you're going to end up with what you need anyway.

Congratulations. Don't be too hard on yourself. Go see an IFA, make your last ten years as efficient as possible and enjoy the fruits of your labour when you do come to retire.