Good Personal Pension?

EdInvestor

Ms_MoneyPenny wrote: »

if I can do DIY investing in funds - using SIPPS(?) and do well that is great - perhaps even the best option but

if I don't do well becuase I am no expert, or make bad choices, could be risky

so, I can go to an IFA to do the 'work' for me which I will pay quite a lot for over time but less risk (?)

Only if the IFA is any good.And in order to know if he's any good or not, you need to understand at least a few basics about how investment works. By the time you've learnt that you'll know almost as much as the IFA and will wonder what you're paying for.

and/or buying a product direct off the shelf such as 'Clerical medical Personal Pension' through Cavendish is perhaps the worst option as there is little flexibiliy in fund choice and I still need to know what I am choosing as it is a bare bones service?

No.But then you have to do all the work of finding the product first.

Dick_here

EdInvestor wrote: »

Only if the IFA is any good.And in order to know if he's any good or not, you need to understand at least a few basics about how investment works. By the time you've learnt that you'll know almost as much as the IFA and will wonder what you're paying for.

I think that is quite offensive to IFAs (who are all qualified remember).

It's like saying that knowing how to buy a brick makes you almost as good as a builder

Ms_MoneyPenny_2

Hi, in repy to EdInvestor - what are the basics I should be learning then, so i can at least judge if the IFA is any good?

cheers

dunstonh

what are the basics I should be learning then, so i can at least judge if the IFA is any good?

IFAs sit around 12 exams to get to diploma level. If you average 120-180 hours for each exam then that gives you the basics. Of course putting the knowledge into practical use and understanding it takes years.

jem16

Ms_MoneyPenny wrote: »

Hi, in repy to EdInvestor - what are the basics I should be learning then, so i can at least judge if the IFA is any good?

cheers

Ask the IFA to see the research that has been done to decide which pension is best for you. That should give you a good indication.

Ian9999_2

Where would you say is the best place (search engine, recognised body)
to find the best local IFA within your area?

jem16

http://www.unbiased.co.uk/

Look for small local firms rather than large salesforces with a large staff turnover. Try to speak to the owner/partner who is more interested in how his business is run and more liable.

EdInvestor

!!!!!!_here wrote: »

I think that is quite offensive to IFAs (who are all qualified remember).

They may well be, but remember they are incentivised (as distributors) to make money by product providers.This can mean there is a conflict of interest between you and the advisor. This is why we still have constant cases of misselling.

In addition many tend to have skills which mainly relate to insurance, pension and tax regulation, rather than how to make money from investment.

jem16

EdInvestor wrote: »

They may well be, but remember they are incentivised (as distributors) to make money by product providers.This can mean there is a conflict of interest between you and the advisor. This is why we still have constant cases of misselling.

Agree a fee or a set percentage of commission before and there will be no commission bias.

In addition many tend to have skills which mainly relate to insurance, pension and tax regulation, rather than how to make money from investment.

All of the above skills would be very helpful to have in any investment as most of them relate to the appropriate wrapper. They are also the skills the majority of the general public don't have and why they need an IFA.

Gatser

Dithering_Dad wrote: »

There is no shame in employing experts to advise you.

Correct...but... sometimes those experts prove to be mere mortals like the rest of us and they cannot predict the future any better than Rosie Lee!

Over the years I have come to the conclusion that it is best to use experts to get advice but at the end of the day the decisions are YOURS because if it all goes wrong it is YOUR responsibility, the experts will not take the rap for it.