IFA and Ethical investment Return

Woolsery

dunstonh said:

Between choosing him and setting things in motion I had a change of opinion and asked him to reflect that in his final recommendation, but I found he didn't. He came across as a 'Yes' man who would nod earnestly to anything one said. He was almost the only IFA who replied to me though; the others obviously thinking £40k a rather trifling amount to bother themselves with!

40k is very very low for an IFA.    I wouldn't have built a personal portfolio at that level either.   There is little point playing around with sums that small.  A multi-asset fund is the ideal solution.

I don't think there's anything very personal about the fund; it's not what I'd call a portfolio. Also as I understand the rules, with more than £30k in a retirement pot can't withdraw it without consulting and presumably using an advisor. Advisors also list the lowest figure they'll deal with on Unbiased etc and quite a few start at £0 - £50k. Now, there's no denying the lower end of that range is small!

Malthusian's comment made me chuckle. I examined the 'ethical' businesses invested in by this particular fund and right at the top was one whose founder I consider to be one of the least ethical people on the planet.

coyrls

Woolsery said:

dunstonh said:

Between choosing him and setting things in motion I had a change of opinion and asked him to reflect that in his final recommendation, but I found he didn't. He came across as a 'Yes' man who would nod earnestly to anything one said. He was almost the only IFA who replied to me though; the others obviously thinking £40k a rather trifling amount to bother themselves with!

40k is very very low for an IFA.    I wouldn't have built a personal portfolio at that level either.   There is little point playing around with sums that small.  A multi-asset fund is the ideal solution.

Also as I understand the rules, with more than £30k in a retirement pot can't withdraw it without consulting and presumably using an advisor.

That rule only applies to Defined Benefit schemes or schemes with specific benefits, not general SIPPs.  Where is your £350K coming from?

Woolsery

coyrls said:

Woolsery said:

dunstonh said:

Between choosing him and setting things in motion I had a change of opinion and asked him to reflect that in his final recommendation, but I found he didn't. He came across as a 'Yes' man who would nod earnestly to anything one said. He was almost the only IFA who replied to me though; the others obviously thinking £40k a rather trifling amount to bother themselves with!

40k is very very low for an IFA.    I wouldn't have built a personal portfolio at that level either.   There is little point playing around with sums that small.  A multi-asset fund is the ideal solution.

Also as I understand the rules, with more than £30k in a retirement pot can't withdraw it without consulting and presumably using an advisor.

That rule only applies to Defined Benefit schemes or schemes with specific benefits, not general SIPPs.  Where is your £350K coming from?

£350k? My pot came from an AVC linked to a DB pension. I've been living on the pension and other sources of income for years.

coyrls

Woolsery said:

coyrls said:

Woolsery said:

dunstonh said:

Between choosing him and setting things in motion I had a change of opinion and asked him to reflect that in his final recommendation, but I found he didn't. He came across as a 'Yes' man who would nod earnestly to anything one said. He was almost the only IFA who replied to me though; the others obviously thinking £40k a rather trifling amount to bother themselves with!

40k is very very low for an IFA.    I wouldn't have built a personal portfolio at that level either.   There is little point playing around with sums that small.  A multi-asset fund is the ideal solution.

Also as I understand the rules, with more than £30k in a retirement pot can't withdraw it without consulting and presumably using an advisor.

That rule only applies to Defined Benefit schemes or schemes with specific benefits, not general SIPPs.  Where is your £350K coming from?

£350k? My pot came from an AVC linked to a DB pension. I've been living on the pension and other sources of income for years.

Sorry, I mixed you up with the original poster in this thread but the fact still remains that you don't have to consult an adviser if you are withdrawing from a simple "pot" with more than 30K in it.

Woolsery

coyrls said:

Woolsery said:

coyrls said:

Woolsery said:

dunstonh said:

Between choosing him and setting things in motion I had a change of opinion and asked him to reflect that in his final recommendation, but I found he didn't. He came across as a 'Yes' man who would nod earnestly to anything one said. He was almost the only IFA who replied to me though; the others obviously thinking £40k a rather trifling amount to bother themselves with!

40k is very very low for an IFA.    I wouldn't have built a personal portfolio at that level either.   There is little point playing around with sums that small.  A multi-asset fund is the ideal solution.

Also as I understand the rules, with more than £30k in a retirement pot can't withdraw it without consulting and presumably using an advisor.

That rule only applies to Defined Benefit schemes or schemes with specific benefits, not general SIPPs.  Where is your £350K coming from?

£350k? My pot came from an AVC linked to a DB pension. I've been living on the pension and other sources of income for years.

Sorry, I mixed you up with the original poster in this thread but the fact still remains that you don't have to consult an adviser if you are withdrawing from a simple "pot" with more than 30K in it.

Thanks, that's useful to know; though it would have been much more useful to have known it last year! It sounds like I was mixed-up too, misinterpreting something I read.

I only posted here to sympathise with the OP, who's seen their fund fall quickly against a background of rapidly rising inflation. I agree their expectations are unrealistic just now, but I don't want to comment further

DoneWorking

I've heard back from three of the IFAs now

One of them seems best

He says it could take over a month to assess the best way forward for me maybe longer depending on any complexities in my current position.

He says on past record he has achieved an overall growth of around 8% on ESG which should deal with inflation after fees

Obviously that is historical data

So my decision now is whether to go with him and hope he can continue to achieve these returns

Or to go for a completely different option

Parcel my funds into different packages and do a mix of saving accounts and Vanguard style investments

The savings I can do myself

But I would need help for the Vanguard option

How likely am I going to be able to find an IFA who will give me advice on the best Vanguard option

Or should I just bite the bullet and go with Hargreaves and Lansdown who I know are pricey

Malthusian

So my decision now is whether to go with him and hope he can continue to achieve these returns

It is reasonable to hope that any diversified investment portfolio recommended by an IFA, with a decent allocation to equities, would beat inflation or at least cash if held for the long term. It can never be guaranteed over any timeframe.

How likely am I going to be able to find an IFA who will give me advice on the best Vanguard option

IFAs are obliged to consider the whole of the market. They cannot restrict themselves to Vanguard even if you ask them to.

Or should I just bite the bullet and go with Hargreaves and Lansdown who I know are pricey

If you mean "get advice from Hargreaves Lansdown" that is the worst of both worlds as you will get worse advice than an IFA at a higher price. They will also not advise you on Vanguard funds as they are tied and only advise on Hargreaves Lansdown products.

If you mean "DIY with Hargreaves Lansdown" that doesn't meet your requirement for advice.

I am pretty sure Vanguard funds include exposure to fossil fuels, even the "SRI" ones, although I haven't exhaustively looked at every single one.

dunstonh

Or should I just bite the bullet and go with Hargreaves and Lansdown who I know are pricey

What would that achieve over an IFA apart from a restricted offering at higher cost?     

How likely am I going to be able to find an IFA who will give me advice on the best Vanguard option

Possible as the IFA can record that you wish to restrict to Vanguard only and don't mind paying extra charges for doing so.  Seems a bit pointless though as
a) Vanguard do not have the best or cheapest trackers in all areas
b) You say you want an ESG offering - Vanguard is not geared for that beyond a simple option.

DoneWorking

Thanks Malthusian

That makes a lot of sense

Sorry to go on so much about this big decision for me

Others seem able to just go ahead without appearing to worry

I think it comes from memories of my grandmother trying to make ends meet to feed her eight children and me too on  my grandfather's low wages in the 1950s

DoneWorking

dunstonh said:

Or should I just bite the bullet and go with Hargreaves and Lansdown who I know are pricey

What would that achieve over an IFA apart from a restricted offering at higher cost?     

How likely am I going to be able to find an IFA who will give me advice on the best Vanguard option

Possible as the IFA can record that you wish to restrict to Vanguard only and don't mind paying extra charges for doing so.  Seems a bit pointless though as
a) Vanguard do not have the best or cheapest trackers in all areas
b) You say you want an ESG offering - Vanguard is not geared for that beyond a simple option.

Thanks Dunstonh

Are there any alternatives to Vanguard which are ESG geared