M&G Wealth / Openworks Pension Advisor charges

dunstonh

marky9074 said:

Bearing in mind I obviously have little idea what I am doing, but am reasonably confident that I couldn't pick worse funds than I am already in, have looked at the below based on my adventurous attitude. If I were to pull everything out of the M&G and split evenly over the following I don't think I would be in bad shape.

	Charge	TC	5 Years
Fidelity Global Technology Fund	1.04	0.47	19.61%
Fidelity European Fund W Acc	0.92	0.07	9.36%
Fidelity Index World P	0.12	0.00	11.00%
Scottish Mortgage Investment Trust plc	0.35	0.04	9.65%
Vanguard FTSE All-World UCITS ETF	0.22	0.02	9.86%
Vanguard LifeStrategy 100% Equity Fund	0.22	0.02	8.90%

Now you are overcomplicating it and introducing issues.  For example:
why the extremely high risk Tech fund and Scottish Mortgage IT?  (especially at the point many fear that tech is about burst - last time tech burst, it lost 90% from peak to trough and took 16 years to recover, longer if you factor in inflation)
Why the managed Vanguard fund with UK bias?
Why increase your asset allocation to Europe excluding UK?

How often will you be rebalancing the portfolio?

Bostonerimus1

I think this thread really highlights the issues that can occur when people are far removed from their money by layers of administration and each layer has an opportunity for fees. Everyone should make the effort to understand the investments inside their pensions and the impact of fees. The numbers the OP is giving here are very scary, but another scary thing is the portfolio the OP suggests. Complexity is not necessary and if the OP wants some risk just use a Global Equity index fund, l but I think the OP needs a bit more experience or an IFA to change things.

marky9074

Thanks everyone for the ongoing support. Kind of ironic the suggestion of needing a financial advisor to advise which is what I thought I had (and have been paying for the last ten years plus!). Totally accept that I need more experience and those funds were literally plucked out of thin air from a very brief scan of the 'ii Super 60', some web searching and input from ChatGPT..... 

I've just signed up to unbiased to get a free pension check and will take it from there. 

A friend also mentioned yesterday her pension was moved and split into the following, which do seem to be performing well also:

• Mercer passive overseas equity fund
• Mercer passive equity hedged fund

Noted on using a Global Equity Index Fund.

dunstonh

Totally accept that I need more experience and those funds were literally plucked out of thin air from a very brief scan of the 'ii Super 60', some web searching and input from ChatGPT..... 

be wary of platform marketing lists.   They are not advice and can include funds that are in there for the benefit of the platform.   For example, for superclean share classes, the platform will need £xxxx invested in them to obtain and retain terms. 

looking at the list, there are a heck of a lot of niche/specialist funds in there and many that are not best in class or perhaps strange choices.

ChatGPT is definitely not the way to pick and web searches require you to spot biases that exist.

I've just signed up to unbiased to get a free pension check and will take it from there. 

Unbiased is no longer an IFA directory.   It is a lead generation site nowadays and dominated by tied sales agents.   Independents have been priced out.   So, you will just be putting yourself in front of someone similar to what you had.

If you want advice, it has to be an IFA.   Otherwise you DIY.     Forget about looking at sales agents and FAs.

A friend also mentioned yesterday her pension was moved and split into the following, which do seem to be performing well also:

• Mercer passive overseas equity fund

• Mercer passive equity hedged fund

Mercer means it is a workplace pension and if you have ever dealt with Mercer, you wouldn't be there if you had any choice.
  

marky9074

Ok, so what the best place to filter out and find bona fide IFA? I am now looking at VouchedFor, but am getting increasing sceptical!

JoeCrystal

Like any other tradespeople. You see if someone you know can recommend you an IFA or often you come across them in local pages or see their signs outside in their offices.

But make sure that they are actually IFAs!

Beddie

marky9074 said:

Ok, so what the best place to filter out and find bona fide IFA? I am now looking at VouchedFor, but am getting increasing sceptical!

I think vouchedfor is a list of advisers who paid to be on there, so won't often have small local firms. Although a search on there for my local area did find an IFA 12 miles away. I'd also look on google maps, find local IFA businesses and give them a call or send a message. Find one you like and have a chat!

dunstonh

Ok, so what the best place to filter out and find bona fide IFA? I am now looking at VouchedFor, but am getting increasing sceptical!

Vouchedfor is damned expensive for firms to use.    In our area, there are hardly any on there and I know one that is and he charges referrals from Vouched higher charges than those that go to him direct.

Google IFAs in your area.    Most IFA firms are 1-5 advisers with a single office.   The IFA facilitates the choice of provider/platform and investments.   So, you are not investing in the IFA.      Look at the costs though.    Most small independent IFAs are very busy, some expensive and some low-cost.    The larger ones tend to be closer to the Wealth Management models you are trying to avoid.  

marky9074

It would seem harder than you would think... seems all roads lead back to Saint James's Place!

Bostonerimus1

marky9074 said:

It would seem harder than you would think... seems all roads lead back to Saint James's Place!

Hopefully not as that's a very expensive place to end up.