True Potential ISA

jimjames

Brilley said:

Once you have had the "advice" to assess your risk it would probably be better to read up and DIY? I would leave them but that would just consolidate our (to date), poor returns.

I'm not sure I agree it would consolidate your poor returns. If you draw out to cash then yes I agree it would. If you switch to an alternative investment with lower fees then it will help your returns increase immediately and give a boost to the recovery of the funds from that reduced fee. The longer you stick with higher fees the bigger the drag on your returns.

Beddie

mettlemickey said:

Beddie said:

It's probably this - https://www.tpllp.com/true-potential-portfolios/

So they risk assess you and choose a portfolio based on that. This is then managed for the level of risk.

Why did you speak to this adviser, when you've already spoken to others who are independent? He might be a nice chap, but if this is all they are offering you might as well choose your own investments. However, if you value the advice and feel you can work with this guy, that's fine too! It's your money

Yes I think you're right, the guy said the reviews are basically just assessing our needs and modifying the risk level to suit. I didn't know this chap was not independent until he got here, someone recommended him. He seems fine, but im not keen on the tie in now I know it exists.

I spoke to someone from NFU mutual last year, on the recommendation of a friend. Again, a nice chap and he was very knowledgeable and helpful. However, they also only offer their own funds, which are run in a similar way to the ones you were shown. The charges were reasonable, but the past performance was awful!

mettlemickey

Brilley said:

We moved to TP about 6 years ago, and our investment (mid risk) have been steadily "losing" money ever since, (due to inflation).

Initially we were informed "a likely return return of 8%", but the highest we ever achieved was 4%, (pre pandemic) and currently returns to date equivalent to 1.5% / yr overall. (TP / advisor have probably made more money than we have?).

Once you have had the "advice" to assess your risk it would probably be better to read up and DIY? I would leave them but that would just consolidate our (to date), poor returns.

We were advised that if you are investing you should do so for the "long term, (10 years), but after 6 years I would have expected a better return, but I accept Covid and a war has not really helped things!

Also depends whether or not you actually need "ongoing" or just "one off" advice?

..and yes they will only offer you their products based on your risk.

Thanks Brilley, thats really helpful feedback 

Stubod

If I had any spare money that I did not need now I would be puting it into the highest fixed rate account I could find. Better to get a guaranteed 4% ('ish), than go with TP, (IMHO)....

dunstonh

mettlemickey said:

Brilley said:

We moved to TP about 6 years ago, and our investment (mid risk) have been steadily "losing" money ever since, (due to inflation).

Initially we were informed "a likely return return of 8%", but the highest we ever achieved was 4%, (pre pandemic) and currently returns to date equivalent to 1.5% / yr overall. (TP / advisor have probably made more money than we have?).

Once you have had the "advice" to assess your risk it would probably be better to read up and DIY? I would leave them but that would just consolidate our (to date), poor returns.

We were advised that if you are investing you should do so for the "long term, (10 years), but after 6 years I would have expected a better return, but I accept Covid and a war has not really helped things!

Also depends whether or not you actually need "ongoing" or just "one off" advice?

..and yes they will only offer you their products based on your risk.

Thanks Brilley, thats really helpful feedback 

It isn't really as it is without context and it is wrong.  No TP funds have performed in the way described in that post.

Brilley

... I would be more than happy to be proved wrong, but I can confirm that we transferred into TP some existing S&S ISA's in 2017 of "value x". We have not added or taken out any money from these, and using a spreadsheet I can confirm that as of today the value of those same ISA's is the equivalent to an annual return of 1.5%.

dunstonh

Brilley said:

... I would be more than happy to be proved wrong, but I can confirm that we transferred into TP some existing S&S ISA's in 2017 of "value x". We have not added or taken out any money from these, and using a spreadsheet I can confirm that as of today the value of those same ISA's is the equivalent to an annual return of 1.5%.

You said: "We moved to TP about 6 years ago, and our investment (mid risk) have been steadily "losing" money ever since, (due to inflation)."

It won't have been steadily losing money.  2017 was a positive year.  2018 was a negative year.  2019,2020 & 2021 were positive years.  2022 was a negative year.   2023 YTD is treading water.

What you would have seen, irrespective of provider, is a zig zagging of values.  Some points would have looked quite nice.  However, as we have yet to recover from the 2022 falls, you are looking at the impact of that year.    Whenever the markets fall and you look at the value after that, it can take your value back to where it was 1-7 years (typical range) earlier.   

It can be demoralising but it's not an indication of "steadily losing money".

Brilley

I guess it's down to semantics, and what your point of reference is. Mine is simple, how much money did I start with, how long have I been invested for, and what is its current worth. What happens in between is (to me) irrelevant. So by my measure we have been "steadily losing money" when inflation is factored in. Admittedly this could all change on Monday if the share values suddenly increase by 20%.