IFA - What Mistakes Are Acceptable, If Any?

GSP

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

[Deleted User]

GSP said:

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

“ but the whole idea of investments and being responsible for them is very scary to me,”

Yes, but you are always the one living with consequences of investment decisions, good or bad.  No way around. The impact is always on your family, not the advisor’s. By passing the responsibility to an intermediary you are kidding yourself. Sorry for being the bearer of bad news. 

“ Just interested what you would do in the way of investments and setting up?”

I would invest my time in learning, understanding and developing conviction to make my own investment policy and then implement it. I don’t know enough about you and your circumstances. The advisor doesn’t either. Nobody does as well as you know yourself. 

My position is kinda similar. I have more investable assets but also a spouse so there are two of us. We have several DB income sources which will switch on at different times and ultimately plato  at around 40K GBP/yr (cpi linked but in different countries and currencies). My asset allocation is fixed at 70/30 stocks/bonds. Stocks are in passive index funds covering the world.  Fixed income is in bonds and cash. Bonds are more actively managed with a significant US allocation to benefit from strong USD during bear markets. Total cost is around 0.1% per annum (including platform, trading, and fees).  Once I hit 65 I will move a portion of investable assets into an annuity to make sure basic needs are covered until the end. The rest will be moved to a single multi-asset fund so that the spouse can manage without any difficulty if needs must. 

My portfolio was developed when some of the more modern products were not available. Something like VLS60 can answer most peoples’ needs in a single and simple product - if they are getting close to retirement. Younger people could go 100% stocks.

Albermarle

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).

Of course that is quite a big question, especially when we do not all the full facts about you .

The number of funds is not really that important. It can be just one. Some go a bit mad and have loads of different ones but something between 5 and 20 seems normal I think. 'Asset Allocation' is usually seen as the key point.

Drawdown has been studied in some depth, especially in the US. You should google ' Safe Withdrawal Rates' as a starter for 10. The idea is that you can withdraw a certain % each year and there is a 95% chance you will never run out even if you get very old . The % often mentioned is 4% but is open to debate.

GSP

Deleted_User said:

GSP said:

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

“ but the whole idea of investments and being responsible for them is very scary to me,”

Yes, but you are always the one living with consequences of investment decisions, good or bad.  No way around. The impact is always on your family, not the advisor’s. By passing the responsibility to an intermediary you are kidding yourself. Sorry for being the bearer of bad news. 

“ Just interested what you would do in the way of investments and setting up?”

I would invest my time in learning, understanding and developing conviction to make my own investment policy and then implement it. I don’t know enough about you and your circumstances. The advisor doesn’t either. Nobody does as well as you know yourself. 

My position is kinda similar. I have more investable assets but also a spouse so there are two of us. We have several DB income sources which will switch on at different times and ultimately plato  at around 40K GBP/yr (cpi linked but in different countries and currencies). My asset allocation is fixed at 70/30 stocks/bonds. Stocks are in passive index funds covering the world.  Fixed income is in bonds and cash. Bonds are more actively managed with a significant US allocation to benefit from strong USD during bear markets. Total cost is around 0.1% per annum (including platform, trading, and fees).  Once I hit 65 I will move a portion of investable assets into an annuity to make sure basic needs are covered until the end. The rest will be moved to a single multi-asset fund so that the spouse can manage without any difficulty if needs must. 

My portfolio was developed when some of the more modern products were not available. Something like VLS60 can answer most peoples’ needs in a single and simple product - if they are getting close to retirement. Younger people could go 100% stocks.

Each to their own, but I would still prefer to have a professional looking after my investments and don’t mind paying them £3-4k p.a. for doing so.

Reading your paragraph “My position is kinda similar….., that’s it, you have lost me right there. I think you may underestimate the knowledge you have on this.

GSP

Albermarle said:

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).

Of course that is quite a big question, especially when we do not all the full facts about you .

The number of funds is not really that important. It can be just one. Some go a bit mad and have loads of different ones but something between 5 and 20 seems normal I think. 'Asset Allocation' is usually seen as the key point.

Drawdown has been studied in some depth, especially in the US. You should google ' Safe Withdrawal Rates' as a starter for 10. The idea is that you can withdraw a certain % each year and there is a 95% chance you will never run out even if you get very old . The % often mentioned is 4% but is open to debate.

Thanks

Wouldn’t that be great, withdrawing a certain % but the last year comes along and blows planners out of the water!

At my annual review, I’ve gone from having a sustainable rate of withdrawal in 2021 to an unsustainable withdrawal rate just twelve months later in 2022, even though I withdrew less this year.

Quite what the future will bring, but I don’t want to do this alone without professional help such as an IFA.

[Deleted User]

GSP said:

Deleted_User said:

GSP said:

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

“ but the whole idea of investments and being responsible for them is very scary to me,”

Yes, but you are always the one living with consequences of investment decisions, good or bad.  No way around. The impact is always on your family, not the advisor’s. By passing the responsibility to an intermediary you are kidding yourself. Sorry for being the bearer of bad news. 

“ Just interested what you would do in the way of investments and setting up?”

I would invest my time in learning, understanding and developing conviction to make my own investment policy and then implement it. I don’t know enough about you and your circumstances. The advisor doesn’t either. Nobody does as well as you know yourself. 

My position is kinda similar. I have more investable assets but also a spouse so there are two of us. We have several DB income sources which will switch on at different times and ultimately plato  at around 40K GBP/yr (cpi linked but in different countries and currencies). My asset allocation is fixed at 70/30 stocks/bonds. Stocks are in passive index funds covering the world.  Fixed income is in bonds and cash. Bonds are more actively managed with a significant US allocation to benefit from strong USD during bear markets. Total cost is around 0.1% per annum (including platform, trading, and fees).  Once I hit 65 I will move a portion of investable assets into an annuity to make sure basic needs are covered until the end. The rest will be moved to a single multi-asset fund so that the spouse can manage without any difficulty if needs must. 

My portfolio was developed when some of the more modern products were not available. Something like VLS60 can answer most peoples’ needs in a single and simple product - if they are getting close to retirement. Younger people could go 100% stocks.

Each to their own, but I would still prefer to have a professional looking after my investments and don’t mind paying them £3-4k p.a. for doing so.

Reading your paragraph “My position is kinda similar….., that’s it, you have lost me right there. I think you may underestimate the knowledge you have on this.

Just do me a favour and read this book. 

DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning

tacpot12

GSP said:

...

At my annual review, I’ve gone from having a sustainable rate of withdrawal in 2021 to an unsustainable withdrawal rate just twelve months later in 2022, even though I withdrew less this year.

...

How lon do you need your rate of withdrawal to be sustainable for?

Most people in the UK have a substantial entitlement to the state pension, and consequently a 5-6% withdrawal rate in early retirement (i.e. before state retirement age) is sustainable for the period until they reach state retiremetn age, but would not be sustainable if they were to try to continue that rate until they died. 

If you have any DB pensions, this might further increase the safe withdrawal rate. 

GSP

Deleted_User said:

GSP said:

Deleted_User said:

GSP said:

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

“ but the whole idea of investments and being responsible for them is very scary to me,”

Yes, but you are always the one living with consequences of investment decisions, good or bad.  No way around. The impact is always on your family, not the advisor’s. By passing the responsibility to an intermediary you are kidding yourself. Sorry for being the bearer of bad news. 

“ Just interested what you would do in the way of investments and setting up?”

I would invest my time in learning, understanding and developing conviction to make my own investment policy and then implement it. I don’t know enough about you and your circumstances. The advisor doesn’t either. Nobody does as well as you know yourself. 

My position is kinda similar. I have more investable assets but also a spouse so there are two of us. We have several DB income sources which will switch on at different times and ultimately plato  at around 40K GBP/yr (cpi linked but in different countries and currencies). My asset allocation is fixed at 70/30 stocks/bonds. Stocks are in passive index funds covering the world.  Fixed income is in bonds and cash. Bonds are more actively managed with a significant US allocation to benefit from strong USD during bear markets. Total cost is around 0.1% per annum (including platform, trading, and fees).  Once I hit 65 I will move a portion of investable assets into an annuity to make sure basic needs are covered until the end. The rest will be moved to a single multi-asset fund so that the spouse can manage without any difficulty if needs must. 

My portfolio was developed when some of the more modern products were not available. Something like VLS60 can answer most peoples’ needs in a single and simple product - if they are getting close to retirement. Younger people could go 100% stocks.

Each to their own, but I would still prefer to have a professional looking after my investments and don’t mind paying them £3-4k p.a. for doing so.

Reading your paragraph “My position is kinda similar….., that’s it, you have lost me right there. I think you may underestimate the knowledge you have on this.

Just do me a favour and read this book. 

DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning

Thanks, and will do.

GSP

tacpot12 said:

GSP said:

...

At my annual review, I’ve gone from having a sustainable rate of withdrawal in 2021 to an unsustainable withdrawal rate just twelve months later in 2022, even though I withdrew less this year.

...

How lon do you need your rate of withdrawal to be sustainable for?

Most people in the UK have a substantial entitlement to the state pension, and consequently a 5-6% withdrawal rate in early retirement (i.e. before state retirement age) is sustainable for the period until they reach state retiremetn age, but would not be sustainable if they were to try to continue that rate until they died. 

If you have any DB pensions, this might further increase the safe withdrawal rate. 

First time I have seen this 5-6% rate quoted. Sounds good, but I think the markets have a bigger say on that.

GSP

Deleted_User said:

GSP said:

Deleted_User said:

GSP said:

Deleted_User said:

SpringermadMR said:

Our IFA of 3 years just sold out to a wealth management company, in the letter announcing this it made no mention of becoming restricted. Our new "IFA" on first contact with us, just sent a pack to sell our 32 + funds/investments to put them into two other funds and a new platform with a % increase hidden in the paperwork and also a change to restricted. So beware of IFA's selling their business, it certainly won't be in your best interests.

Its a fundamental problem for anyone considering using IFAs for ongoing portfolio management. 

I assume  that every time people are forced to switch, there are upfront costs as well as time and effort in selecting a new advisor, unnecessary investment changes, etc. 
 

That time could be better spent understanding how to get rid of advisors altogether so the risk of them selling you goes away altogether. Given simple and superbly diversified products available on the market nobody should be using a redundant management layer  between you and your money.  Not for day to day management. Suppose if you don’t know percentages  and can’t read then you don’t have much choice but in all other cases read a book and fire your advisor. 

I’d like to think I was okay with numbers, but the whole idea of investments and being responsible for them is very scary to me, and I don’t mind admitting about losing bottle.

At present I’m struggling finding a new IFA in my area (which I don’t want to disclose if okay). Whether google isn’t enough and there is a link to a site?

Just interested what you would do in the way of investments and setting up? How many would you choose and a strategy that hopes to live off drawdown to a ‘good age’ (currently c£750k joint funds).
Thanks

“ but the whole idea of investments and being responsible for them is very scary to me,”

Yes, but you are always the one living with consequences of investment decisions, good or bad.  No way around. The impact is always on your family, not the advisor’s. By passing the responsibility to an intermediary you are kidding yourself. Sorry for being the bearer of bad news. 

“ Just interested what you would do in the way of investments and setting up?”

I would invest my time in learning, understanding and developing conviction to make my own investment policy and then implement it. I don’t know enough about you and your circumstances. The advisor doesn’t either. Nobody does as well as you know yourself. 

My position is kinda similar. I have more investable assets but also a spouse so there are two of us. We have several DB income sources which will switch on at different times and ultimately plato  at around 40K GBP/yr (cpi linked but in different countries and currencies). My asset allocation is fixed at 70/30 stocks/bonds. Stocks are in passive index funds covering the world.  Fixed income is in bonds and cash. Bonds are more actively managed with a significant US allocation to benefit from strong USD during bear markets. Total cost is around 0.1% per annum (including platform, trading, and fees).  Once I hit 65 I will move a portion of investable assets into an annuity to make sure basic needs are covered until the end. The rest will be moved to a single multi-asset fund so that the spouse can manage without any difficulty if needs must. 

My portfolio was developed when some of the more modern products were not available. Something like VLS60 can answer most peoples’ needs in a single and simple product - if they are getting close to retirement. Younger people could go 100% stocks.

Each to their own, but I would still prefer to have a professional looking after my investments and don’t mind paying them £3-4k p.a. for doing so.

Reading your paragraph “My position is kinda similar….., that’s it, you have lost me right there. I think you may underestimate the knowledge you have on this.

Just do me a favour and read this book. 

DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning

And who would help you if you needed it, or are you really on your own?