Aviva Vs True Potential - pension getting lower and lower

Rushy_5150

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why) My wife's pension as increased by a small amount but mine has gone from £68,000 to £65,000 over the same period of time. In hindsight I should have stayed with Aviva but would it have reduced in value with them as well? Currently I'm thinking of transferring it back to Aviva - Thanks for any thoughts.

gm0

There is no short cut to examining what you are invested in - the mix of assets - equities, bonds, cash, and the fee paid to do so

Although there is a spike in markets back up this very week due to US interest rates changes in expectations.  The general issues around the world with war, inflation, food and energy prices and central bank interest rate actions in 2022 were such that equities and bonds both fell.  And unusually bonds fell more and did not help out. 
And most people with a wide range of investment mixes last year saw one year negative returns

So in that sense your experience is not unusual.

For a similar mix held at two providers - the difference is the fees charged either for the funds, the product or some other cleverly designed product structure which lures you into the wealth managers clutches and dips your wallet

Financial advice is riddled with this.  And your example TPWM (which to be fair does say "Wealth Management" over the door).  The phrase "Wealth Management" usually means - we plan to enrich ourselves at your expense.

Advisers - independent or not - do not promise (attributably) or contract for "better performance".  Sales dictates that perceived competence sells and that it is often implied.  But it is not what advice actually does.  Suitable investments.  At your own risk.  For a fee (which is more or less egregious depending upon the provider)

So you should look at what you have been charged and your T&C.  The normal retail investor setup is a "platform fee", "fund management fees for each investment held".  And sometimes trading or admin fees especially if in drawdown

Wealth managers can bundle things up as product fees and provide less detail.  This does not matter.  Just compare totals.

Check your entry and exit fees and consider whether the investments you were sold genuinely have some value in respect of the goals you explained to TPWM

Rushy_5150

Cheers - yes I gather it's been a rough year for investments so I shouldn't really take one year out of context. I do plan to retire in 3 years however so hopefully it might pick up over that time 

Linton

Rushy_5150 said:

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why) My wife's pension as increased by a small amount but mine has gone from £68,000 to £65,000 over the same period of time. In hindsight I should have stayed with Aviva but would it have reduced in value with them as well? Currently I'm thinking of transferring it back to Aviva - Thanks for any thoughts.

68k to 65k is a very small fall, it is typical of what most portfolios would experience from time to time. so I don’t see it as reason for a move. If you can tell us what fund(s) it is invested then more detailed comments can be given.

In any case performance is almost entire dependent on the investments rather than the platform.

dunstonh

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why)

Because TP will pay your ex adviser 8% of your value if you move to TP.   There is rarely any justification from moving from a whole of market platform to a restricted offering.

GSP

dunstonh said:

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why)

Because TP will pay your ex adviser 8% of your value if you move to TP.   There is rarely any justification from moving from a whole of market platform to a restricted offering.

That’s quite a figure. Why on earth would they pay that much, and would take sometime to recoup their layout?

cfw1994

GSP said:

dunstonh said:

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why)

Because TP will pay your ex adviser 8% of your value if you move to TP.   There is rarely any justification from moving from a whole of market platform to a restricted offering.

That’s quite a figure. Why on earth would they pay that much, and would take sometime to recoup their layout?

Because they can see the wealth True Potential - NOT an Independent Financial Advisor firm - can make in the years ahead.

It speaks volumes for how disingenuous the original advisor was, in my opinion: I would bet pounds to pennies that their sole reason for recommending TP was to feather their own retirement next with a tasty bonus at the OPs expense.

I would personally find an IFA to move to.  

GSP

cfw1994 said:

GSP said:

dunstonh said:

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why)

Because TP will pay your ex adviser 8% of your value if you move to TP.   There is rarely any justification from moving from a whole of market platform to a restricted offering.

That’s quite a figure. Why on earth would they pay that much, and would take sometime to recoup their layout?

Because they can see the wealth True Potential - NOT an Independent Financial Advisor firm - can make in the years ahead.

It speaks volumes for how disingenuous the original advisor was, in my opinion: I would bet pounds to pennies that their sole reason foe recommending TP was to feather their own retirement next with a tasty bonus at the OPs expense.

I would personally find an IFA to move to.  

Hmm. Must be hard to prove but I wonder if retiring IFA’s recommend a lot of investment changes for their clients?

I have seen/been on the back of being told a lot of my investments were being altered to bring into line with other clients, as these investments apparently were mostly the same.

Or the sceptical part of me thinks were these changes being brought in to make a handover to another individual/company easier if clients have a lot of the same investments?

If this was to be proven, surely it’s not acting in the best interests of the clients and a form of neglect?

Linton

It seems a difficult area.  Clearly selling a client list for a high price is dodgy, especially if the clients think that their advisor is still acting as an IFA.  On the other hand many proprietors of small businesses need to sell their business to fund their retirement.  So what do they do?  Could the regulators specify standards for selling a business?  If the rules were clear predatory large FA companies would have less leverage.

Albermarle

Rushy_5150 said:

Hi all - so my finacial advisor retired early 2022 and suggested to my and my wife that we should move over to True Potential (TPWM) as it would be better for us (can't exactly remember why) My wife's pension as increased by a small amount but mine has gone from £68,000 to £65,000 over the same period of time. In hindsight I should have stayed with Aviva but would it have reduced in value with them as well? Currently I'm thinking of transferring it back to Aviva - Thanks for any thoughts.

You have to be very careful with the exact time period, when comparing investment performance. For example 'last year' and ' the last 12 months' will give you a different result.

Most typical pension funds lost about 10% last year ( from 1st Jan to 31st Dec)  some a lot more, some less.
There has been a pick up in January so the typical loss from 01/01/22 to 31/01/23 is more like 7%

It seems like you are using some time in March? 2022 as the starting point, by which time some of the losses for 2022 had already happened,