Advice Needed: Pension Consolidation and Financial Advisor Costs

Marcon

Labtebricolist said:

Marcon said:

Labtebricolist said:

It isn’t difficult at all to do it yourself, and you’re likely to save tens of thousands in costs over the lifetime of investing.  Whilst IFAs and similar have their uses, a simple pension (as distinct from, say, some of the tax planning aspects) should be understandable to almost all.

You're new to this forum and it shows... Have a read of some of the previous threads and you'll realise that your perfectly sensible sentiment is massively wide of the mark - something most of us who have worked in pensions for decades can confirm from empirical evidence!

Thanks for that.  I’ve no personal dog in this race, and make no comment on what seems to be your assumption that most people are too dumb to understand a pension.  

Or maybe there's no such thing as a 'simple pension' as you fondly believe/hope? Very many years of experience have taught most pension professionals the reality of the situation is something else entirely!

Labtebricolist said:

My view is that people should look into this sort of thing themselves.  If they then feel they need to and can afford to pay for advice then they should do so, but they shouldn’t go into long-term decisions from the starting point of dependence on others.

Wagging a finger and saying people should 'look into this sort of thing themselves' is a long way from reality, I'm afraid. You may be right, but it isn't happening now and there are no encouraging signs that it will be happening any time soon. As for 'dependence on others' - most of us depend on others for advice in all sorts of areas, not just finance, so surely it's up to each individual to pick their preferred course of action, rather than trying to dictate what they should or shouldn't do?

SVaz

Most people, even supposedly intelligent ones,  are incredibly underinformed when it comes to it.
A lot of people are indeed stupid too. 

LHW99

they shouldn’t go into long-term decisions from the starting point of dependence on others

In one way, they should.

Ideally you start a pension when you begin work (at least there is autoenrollment now). A point when you almost certainly won't know anything, no matter how intelligent, and will rely on "some other" person having sorted out a scheme for you, and a default fund for the contributions to go into "long term".

Almost no matter what that is, it's a start and better than nothing.

Where the problem comes is that too great a proportion of people think that's job done, no need to take further interest. An approach that rather fewer people would take when it comes to jobs, housing, physical fitness etc.

And pensions have a reputation for being "too hard" (earned, justifyably, back in the day). People generally feel it's not a problem to say "I'm bad at maths" when they would be very reluctant to admit to being bad at their job (or other things). So too often investment stuff does get left until it's almost too late, just because.

ali_bear

SVaz said:

A lot of people are indeed stupid too. 

You may think that I am stupid but I would have to agree with you 

artyboy

Labtebricolist said:

Marcon said:

Labtebricolist said:

It isn’t difficult at all to do it yourself, and you’re likely to save tens of thousands in costs over the lifetime of investing.  Whilst IFAs and similar have their uses, a simple pension (as distinct from, say, some of the tax planning aspects) should be understandable to almost all.

You're new to this forum and it shows... Have a read of some of the previous threads and you'll realise that your perfectly sensible sentiment is massively wide of the mark - something most of us who have worked in pensions for decades can confirm from empirical evidence!

Thanks for that.  I’ve no personal dog in this race, and make no comment on what seems to be your assumption that most people are too dumb to understand a pension.  

My view is that people should look into this sort of thing themselves.  If they then feel they need to and can afford to pay for advice then they should do so, but they shouldn’t go into long-term decisions from the starting point of dependence on others.

Depressing isn't it. So many millions of people that really ought to be just a bit more clued up about so many things, that on here, us clever people all agree

really. 

aren't.
that.
complicated.

And yet, inexplicably, people just don't seem to want to learn. They just think that 'someone' will sort all this stuff out for them.

And, get this... they are even allowed to vote!

(this by the way is a simplified explanation of where our politicians come from...)

Marcon

artyboy said:

Labtebricolist said:

Marcon said:

Labtebricolist said:

It isn’t difficult at all to do it yourself, and you’re likely to save tens of thousands in costs over the lifetime of investing.  Whilst IFAs and similar have their uses, a simple pension (as distinct from, say, some of the tax planning aspects) should be understandable to almost all.

You're new to this forum and it shows... Have a read of some of the previous threads and you'll realise that your perfectly sensible sentiment is massively wide of the mark - something most of us who have worked in pensions for decades can confirm from empirical evidence!

Thanks for that.  I’ve no personal dog in this race, and make no comment on what seems to be your assumption that most people are too dumb to understand a pension.  

My view is that people should look into this sort of thing themselves.  If they then feel they need to and can afford to pay for advice then they should do so, but they shouldn’t go into long-term decisions from the starting point of dependence on others.

Depressing isn't it. So many millions of people that really ought to be just a bit more clued up about so many things, that on here, us clever people all agree

really. 

aren't.
that.
complicated.

And yet, inexplicably, people just don't seem to want to learn. They just think that 'someone' will sort all this stuff out for them.

And, get this... they are even allowed to vote!

(this by the way is a simplified explanation of where our politicians come from...)

...and drive, and get married, have kids...there's no end to the things these pensions-unaware people can do...even retire!

markcri

just put it in a USA index fund..
0.2% fees.
Beats everything.

dunstonh

markcri said:

just put it in a USA index fund..
0.2% fees.
Beats everything.

Except when it doesnt beat everything.   Don't let recency lead to bad decision making.

kempiejon

markcri said:

just put it in a USA index fund..
0.2% fees.
Beats everything.

We can better 0.2% fees, if lower is better.