Prudential w-p fund advice

dunstonh

Unfortunately as a Pensions ignoramus, I have to rely on an FA to tell me what is/isn't quality.

You may be better placed to use an IFA rather than an FA.

Alternatively, are there any websites that would give good (unbiased) advice in layman's terms, so that I can swat up before my next meeting - fore-warned is fore-armed...!

Trustnet gives you individual fund performance but the skill is in building the portfolio that offers the potential, matches your risk profile and from the best provider that offers everything you want. That comes with time, learning and understanding and no website can do that for you. However, you can get an idea if you are getting qualify advice or basic advice by asking the adviser about the funds and why they were chosen. If only one or two funds are picked then you are looking at basic advice. In which case, why are you paying for advice when you could do that yourself! A stakeholder may be closer to 5-8 funds and personal pension 8-20 funds, The funds shouldnt just be picked to increase numbers but actually diversify the areas you invest in. If you are cautious it doenst mean you should have no equity investments. You can still have a small amount but the spread should be wide and can see as little as 1% invested in a fund just to give you some exposure.

So, look at the areas the funds invest in. Remember that future potential is important. Not past performance. Sometimes picking funds that have lost money in recent times is better than picking funds that have made loads. e.g. look at China. Boomed for last few years with massive returns but since middle of last year it lost 50%. So, if you invested last year on the basis of past performance you would have lost a lot of money. However, now its dropped 50%, it looks more attractive long term. (btw, China is high risk so you would have a very small exposure to that if you are cautious. dont go thinking I am using that as a suggestion for a large amount. It is purely an example).

Techmeister

I've a small amount in the Pru With Profits and my understanding is it will take years and years to get this sorted out. They haven't even said how much they're allocating. Personally what I don't like about WP is that it's so complicated to see how / whether it's grown... if I'm reading the paperwork correctly bonuses, costs, penalties etc are at the Pru's discretion aren't they?

Fargon

Many thanks - appreciate your time and insight.