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IFA vs DIY
Comments
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Sorry I have a very busy life enjoying my early retirement. The important part of DIYing is that you do the research yourself. You need to understand everything that you invest in. Psychologically investing for yourself is different to investing for someone else. So if you are investing read about all the assets that it's possible to invest in and choose for yourself an allocation. Most of my gains have been from incredibly low cost global tracker investing. More important is the split between how much cash I have and how much is invested. My cash savings make a lot of money which would never happen with an IFA because they can't be bothered because there are no massive fees to be charged.
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Happy to DIY as the bulk of our retirement income is DB/SP so nothing to do there other than enjoy. One of the DB commutation rates is superb so will be taking the PCLS on that one.
So the DC is mainly there just to fill in some small gaps and to provide fun tokens.
We have a stacked column chart for each year which shows when each income stream starts and from who. Makes tax planning/filling in gaps pretty straightforward. Like say… should we focus more on ISA or add more to wife's pension for that time period etc.
Anyway, I think the key is keeping finances simple not just for us but for the tax man and the inevitable executors too.
Yes if you have complex needs, have vast sums or just uninterested then sure IFA. I would add that a very close friend uses an IFA on a sub £100k DC pot and is charged roughly £1000pa. They pay in approx £100pm. You can see the issue…This is separate from the workplace scheme. Anyway, none of my business.
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Interesting that the people who decry IFAs dont seem to actually need their investments to provide a significant part of their ongoing income. It may be useful to hear the views from people in retirement who are dependent on their pension pot. Did they seek advice? What is their strategy?
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Yes that would be interesting!
If you need income from your DC pot I'd advocate for a lifetime annuity or gilt ladder to add to SP or other guaranteed income sources to provide a baseline income. I would then invest the remaining DC pot for total return. To keep it simple you might go with VLS100 or maybe 80 or even 60 if you don't like too much volatiliy.
And so we beat on, boats against the current, borne back ceaselessly into the past.0 -
I rely on my SIPP for 70% of my income and therefore have an IFA to guide/Advise me. They advised me to divest from bonds just before the financial crisis which saved me approximately £30,000. The IFA fee was therefore a worthwhile investment.
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Which crisis was this?
And so we beat on, boats against the current, borne back ceaselessly into the past.0 -
2022
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Outrageous of them to try to preserve your portfolio balance, just so they can extract more fees from you as they are based as a percentage of your portfolio. So selfish 😁
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When did they move you back into equities to catch the recovery?
And so we beat on, boats against the current, borne back ceaselessly into the past.0 -
I think they were saying they did the opposite, they sold out of bonds into equities?
Think first of your goal, then make it happen!0
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