Annual Review - Rebalancing and Changes to Investments Concerns

bostonerimus

GSP said:

bostonerimus said:

GSP said:

Thank you for all your responses.

I’ll be looking for a new advisor as a fresh start in the coming months as mine will be retiring in a year or so, and I don’t wish to go where he recommends.

It’ll be ‘interesting’ what the new advisor will recommend in the way of investments. I’ll show him the history of the last five years and see what he thinks!

Going forward, that’s all I have pension funds and drawing down on them.
Would I still need an Independent Financial Advisor (which seem to be very thin on the ground in my area), or would a Financial Advisor or other suffice.
Once again, thanks.

I would lean towards an IFA. When you hire someone make sure you understand the services you'll be getting and all the fees involved. You should be getting a portfolio that is appropriate for your drawdown needs and personal circumstances and a clear drawdown strategy that translates into practical advice about how and when to withdraw money. There should be a discussion of all the tools available to meet your income needs and that should involve doing a budget, considering annuities, maybe downsizing when SP will start etc. This is a holistic process, not just printing out 16 funds with various allocations next to them and telling you to get on with it. If someone is taking say 1% of your portfolio every year they need to be actually doing some work.

Thanks bostonerimus.
Just have to find a new one now and searches don’t reveal any coming up that live fairly close to me.

From memory five years ago when I started drawing down there wasn’t much discussion about strategies etc. I’ve just gone along with drawing money when I need it, and the advisor rebalancing the portfolio.
I was made aware about drawing down too much and the fund running out, but at my previous review my drawdown’s were sustainable, this review they are not.
One year should not be taken in isolation, but that drop over the last year I am sure has blown a number of planners up in the air currently.

Next time with a new advisor I will certainly question the investments chosen more. How many will this new one choose?

A good drawdown plan will account for such bad years as the last one. However, losses early in drawdown are particularly bad as they can propagate through your retirement years and reduce the amount you can drawdown without a good strategy. I think these bad years will indeed show us which IFAs are doing a reasonable job. There's lots of books and internet resources on drawdown so maybe you should do a bit of reading while you are looking for an IFA so you have a grasp of these strategies.

LHW99

Next time with a new advisor I will certainly question the investments chosen more. How many will this new one choose?

That would depend on the advisor / your preferences / amount invested among other factors. Anything from 3 to perhaps 8 is probably an average range, although some portfolios may end up with more (or less)

GSP

bostonerimus said:

GSP said:

bostonerimus said:

GSP said:

Thank you for all your responses.

I’ll be looking for a new advisor as a fresh start in the coming months as mine will be retiring in a year or so, and I don’t wish to go where he recommends.

It’ll be ‘interesting’ what the new advisor will recommend in the way of investments. I’ll show him the history of the last five years and see what he thinks!

Going forward, that’s all I have pension funds and drawing down on them.
Would I still need an Independent Financial Advisor (which seem to be very thin on the ground in my area), or would a Financial Advisor or other suffice.
Once again, thanks.

I would lean towards an IFA. When you hire someone make sure you understand the services you'll be getting and all the fees involved. You should be getting a portfolio that is appropriate for your drawdown needs and personal circumstances and a clear drawdown strategy that translates into practical advice about how and when to withdraw money. There should be a discussion of all the tools available to meet your income needs and that should involve doing a budget, considering annuities, maybe downsizing when SP will start etc. This is a holistic process, not just printing out 16 funds with various allocations next to them and telling you to get on with it. If someone is taking say 1% of your portfolio every year they need to be actually doing some work.

Thanks bostonerimus.
Just have to find a new one now and searches don’t reveal any coming up that live fairly close to me.

From memory five years ago when I started drawing down there wasn’t much discussion about strategies etc. I’ve just gone along with drawing money when I need it, and the advisor rebalancing the portfolio.
I was made aware about drawing down too much and the fund running out, but at my previous review my drawdown’s were sustainable, this review they are not.
One year should not be taken in isolation, but that drop over the last year I am sure has blown a number of planners up in the air currently.

Next time with a new advisor I will certainly question the investments chosen more. How many will this new one choose?

A good drawdown plan will account for such bad years as the last one. However, losses early in drawdown are particularly bad as they can propagate through your retirement years and reduce the amount you can drawdown without a good strategy. I think these bad years will indeed show us which IFAs are doing a reasonable job. There's lots of books and internet resources on drawdown so maybe you should do a bit of reading while you are looking for an IFA so you have a grasp of these strategies.

Yes good idea, thanks for that.