Pensionbee decimates my pension pot.

[Deleted User]

LV_426 said:

robatwork said:

LV_426 said:

Fair enough. I just wanted to get some reassurance. Obviously a personal choice, and everyone's circumstances are unique.

Yes. And no. Unique but we all want pretty much the same.

Everyone's "circumstances" is to desire a large gain with no risk of loss.  If someone could offer that then everyone's business would go to them.

By "circumstances" I mean your particular pension assets and investments. This is why trying to use a forum like this for specific advice is difficult, as you'd need to supply these details. And why an adviser spends time collecting such information in order to advise.

What you're meaning by "circumstances" is "goals", and we all desire something along those lines. And yes nobody can offer that, but I never said they could. 

Nobody should be putting money into anything based exclusively on this forum.  This is just a random collection of opinions. What this forum could do is provide some pointers where to look for good information and what to look for. 

Is an advisor the best person to make your investment decisions for you?  I don’t think so.  

- Firstly, his interests are not aligned with yours.  

- Secondly, nobody knows and understands your circumstances better than you and advisors are unlikely to spend enough time to truly understand your needs, risk and risk tolerance.
- Thirdly, you can easily get guidance from people who are far better qualified than an average advisor and it would cost you far, far less.

Bogleheads wiki provides a very rich source of excellent information on the subject and numerous tools. Most of it is universal.  This is for non-US investors: https://www.bogleheads.org/wiki/Getting_started_for_non-US_investors

Not sure why MoneySavingExpert does not have a similar wiki.  Regardless, there are plenty of excellent books written by the very best experts targeted to various levels of knowledge and numeracy.  Anyone who can read should be able to read a book or two and design an appropriate portfolio based on his/her specific circumstances. In the world of 2022 investing isn’t complicated at all.  

dunstonh

- Firstly, his interests are not aligned with yours.  

yes they are.   All advisers want good outcomes for their clients

- Secondly, nobody knows and understands your circumstances better than you and advisors are unlikely to spend enough time to truly understand your needs, risk and risk tolerance.

Most consumers don't know or understand what their circumstances

- Thirdly, you can easily get guidance from people who are far better qualified than an average advisor and it would cost you far, far less.

no you dont

[Deleted User]

1. Its not in the interest of any consumer to pay ongoing fees to advisors. 

2. Some truth to not knowing own circumstances, risk tolerance, etc.  its not as easy as it seems,  Still, if consumers don’t know themselves then they are unlikely to tell it to you.  In fact, research shows that the ones who do know still vary in what they communicate in responses to questions, depending on the day, weather and latests news.  Figuring it out requires education and effort and is best done by an individual. 

3.  I am sorry but the likes of John Bogle, Burton Malkiel, Bernstein, Edwards, Tony Levene are far better qualified to understand markets than an average advisor.  Their work is peer reviewed and is recognized.  And readily available. What are your credentials in statistical analysis - for starters?  

LV_426

Deleted_User said:

- Thirdly, you can easily get guidance from people who are far better qualified than an average advisor and it would cost you far, far less.

Can you please enlighten me? Who are these people who can give me solid financial advice at minimal cost?

LV_426

Deleted_User said:

Nobody should be putting money into anything based exclusively on this forum.  This is just a random collection of opinions. What this forum could do is provide some pointers where to look for good information and what to look for. 

Never a truer word said. Completely agree. Based on the garbage that some poorly informed people spout on the Internet.

Which is way I'd put my faith in a carefully selected IFA, as I have previously explained.

[Deleted User]

LV_426 said:

Deleted_User said:

Nobody should be putting money into anything based exclusively on this forum.  This is just a random collection of opinions. What this forum could do is provide some pointers where to look for good information and what to look for. 

Never a truer word said. Completely agree. Based on the garbage that some poorly informed people spout on the Internet.

Which is way I'd put my faith in a carefully selected IFA, as I have previously explained.

IFAs can be good or bad and (not their fault) are usually undereducated and on top of that have interests misaligned with yours (again, not blaming them).  They are rewarded based on marketing skills.  There are circumstances and issues when advice can be good value but advisors who charge ongoing fees serve as yet another, completely unnecessary layer between you and your money.

 Investment, asset allocation, risk management and portfolio design advice has been provided by the very best, renown, most qualified experts in the world, which has been written up in books and is readily available for a few quid.   Actual investment vehicles meeting anyones needs are simple and readily available. 

If you think that reading a few books is too much effort to spend on your family’s financial security then IFAs are a reasonable but inferior alternative. 

[Deleted User]

LV_426 said:

Deleted_User said:

- Thirdly, you can easily get guidance from people who are far better qualified than an average advisor and it would cost you far, far less.

Can you please enlighten me? Who are these people who can give me solid financial advice at minimal cost?

John Edwards “DIY retirement” is a good and “easy reading” start.  I really like “Random Walk”.  Good list of highly reputable sources: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit_for_non-US_investors

LV_426

Deleted_User said:

LV_426 said:

Deleted_User said:

- Thirdly, you can easily get guidance from people who are far better qualified than an average advisor and it would cost you far, far less.

Can you please enlighten me? Who are these people who can give me solid financial advice at minimal cost?

John Edwards “DIY retirement” is a good and “easy reading” start.  I really like “Random Walk”.  Good list of highly reputable sources: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit_for_non-US_investors

Well books are fine. But a book about pensions can only ever be written in a general manner. That's a far cry from someone gathering information about your funds, and making recommendations.

You appear to have a dismissive and quite insulting view of financial advisers. I won't be engaging with you further on the subject.

bostonerimus

Deleted_User said:

1. Its not in the interest of any consumer to pay ongoing fees to advisors. 

2. Some truth to not knowing own circumstances, risk tolerance, etc.  its not as easy as it seems,  Still, if consumers don’t know themselves then they are unlikely to tell it to you.  In fact, research shows that the ones who do know still vary in what they communicate in responses to questions, depending on the day, weather and latests news.  Figuring it out requires education and effort and is best done by an individual. 

3.  I am sorry but the likes of John Bogle, Burton Malkiel, Bernstein, Edwards, Tony Levene are far better qualified to understand markets than an average advisor.  Their work is peer reviewed and is recognized.  And readily available. What are your credentials in statistical analysis - for starters?  

I'm with you in not believing that ongoing financial advice is necessary for most people. There might well be critical times when some people will need and want it, like to sort out drawdown, but a well designed portfolio should not need much maintenance at all. However, some people like to have the psychological crutch of an advisor and if it stops them from doing dumb things then that's good, and the truly disengaged will probably benefit from ongoing advice. The thing to avoid is believing that having an IFA will help you "beat the market" or avoid losses in bear markets. You will have to pay big fees for a money manager to actively manage your portfolio, but IMO that's just doubling down on the problem: higher fees with no guarantee of a successful outcome. Bottomline is that I'm "cheap" and if I can save a few pounds I will so DIY is how I do it. It's not for everyone and people will spend their money as they see fit so I'm sure there will always be plenty of willing clients for financial advisors. In the case of the OP some financial advice would have been useful if only to help their expectations match up with reality.

LV_426

bostonerimus said:

Deleted_User said:

1. Its not in the interest of any consumer to pay ongoing fees to advisors. 

2. Some truth to not knowing own circumstances, risk tolerance, etc.  its not as easy as it seems,  Still, if consumers don’t know themselves then they are unlikely to tell it to you.  In fact, research shows that the ones who do know still vary in what they communicate in responses to questions, depending on the day, weather and latests news.  Figuring it out requires education and effort and is best done by an individual. 

3.  I am sorry but the likes of John Bogle, Burton Malkiel, Bernstein, Edwards, Tony Levene are far better qualified to understand markets than an average advisor.  Their work is peer reviewed and is recognized.  And readily available. What are your credentials in statistical analysis - for starters?  

I'm with you in not believing that ongoing financial advice is necessary for most people. There might well be critical times when some people will need and want it, like to sort out drawdown, but a well designed portfolio should not need much maintenance at all. However, some people like to have the psychological crutch of an advisor and if it stops them from doing dumb things then that's good, and the truly disengaged will probably benefit from ongoing advice. The thing to avoid is believing that having an IFA will help you "beat the market" or avoid losses in bear markets. You will have to pay big fees for a money manager to actively manage your portfolio, but IMO that's just doubling down on the problem: higher fees with no guarantee of a successful outcome. Bottomline is that I'm "cheap" and if I can save a few pounds I will so DIY is how I do it. It's not for everyone and people will spend their money as they see fit so I'm sure there will always be plenty of willing clients for financial advisors.

I agree that ongoing advice isn't really necessary. I did a lot of self-planning in terms of early retirement, and concluded that it was possible. I simply felt a need to consult with an adviser, just to reassure myself that I was on the right track. After all, this is the first time I'd ever really got into any kind of financial planning, and advisers have done it countless times before. Had I overlooked anything?
The initial contact actually answered all my questions. I'm glad I talked with him. And it didn't even cost me anything.