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The Problem With Personal Pensions

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I have just requested to transfer money in my personal pension into different funds.

I expected UK and US markets to start to suffer shortly and wanted to move cash out of them as I believe it's important to move cash about to avoid losing money and to make the best returns, over the long run it should make a big difference, remove money when funds go down, put it in when they go up.

Anyway it's taken two weeks to have everything processed and the FTSE has fallen over 100 points in this time. It's criminal that I can't have more direct access to my pension decisions.

On another note - what would anyone recommend going forward? I'm unsure what to do at the moment.

I've currently gone for;

Japan : 22%

Europe: 23%

Emerging: 8%

Cash: 47%

Cash until I can see a clearer picture forming, at over 5% it might even be the best performing fund over the next few years :(

My worst has been Prudential with profits - 18% growth over 6 years, less than 3% per year!!!

How bad is that?

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Amateurs! :angry:

You have no idea what it is like professionally to deal with bloody insurance companies so I now hardly ever do. 2 weeks - pah! Nothing. You got off lightly.

As to your 50/50 equities and cash - if you know what you're doing with your retirement and tax planning then continue if not go to www.thepfs.org Find an Adviser - go Chartered and be prepared to pay for added value. I doubt you know about planning but you likely know about investments.

Good luck!

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Amateurs! :angry:

You have no idea what it is like professionally to deal with bloody insurance companies so I now hardly ever do. 2 weeks - pah! Nothing. You got off lightly.

As to your 50/50 equities and cash - if you know what you're doing with your retirement and tax planning then continue if not go to www.thepfs.org Find an Adviser - go Chartered and be prepared to pay for added value. I doubt you know about planning but you likely know about investments.

Good luck!

The majority of pension funds are with Fidelity. One is with Prudential.

The time delays are with the company that administors the pensions. I hadn't actually added on the delay actioning the requests so who knows how long :(

It does really irritate me though, I like to be able to move more quickly, i.e. I would like to have sold when the FTSE hit 6100 and not have weeks of delays so I miss (what I perceive) to be the peaks.

What would you recommend as a split at the moment? What are you recommending that people do?

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What would you recommend as a split at the moment? What are you recommending that people do?

Anyone answering that question would be subject to FSA rules. Anyone likely to answer you is almost certainly not an IFA for that reason, and therefore you should defnitely seek your own independent advice.

I've seen this sort of thread deleted on other forums.

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Anyone answering that question would be subject to FSA rules. Anyone likely to answer you is almost certainly not an IFA for that reason, and therefore you should defnitely seek your own independent advice.

I've seen this sort of thread deleted on other forums.

fair enough

It's a strange world isn't it.

Phil and Kirstie can tell millions that prices in Bristol 'are expected to rise 38% in 5 years' and yet I can't ask someone for some investment advice on a website chat forum used by a few hundred :(

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fair enough

It's a strange world isn't it.

Phil and Kirstie can tell millions that prices in Bristol 'are expected to rise 38% in 5 years' and yet I can't ask someone for some investment advice on a website chat forum used by a few hundred :(

That's because Phil and Krusty possess special powers. :(

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What would you recommend as a split at the moment? What are you recommending that people do?

I use administration facilities that make pensions, ISAs etc obsolete.

I like Ruffer, Miton and Ashburton for investing.

Did you know that it affects us twice as much losing money than gaining it. Hence I want my clients not to lose money in any calendar year ie absolute return investing using active multi asset class investing.

seek advice!

hth

fp

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fair enough

It's a strange world isn't it.

Phil and Kirstie can tell millions that prices in Bristol 'are expected to rise 38% in 5 years' and yet I can't ask someone for some investment advice on a website chat forum used by a few hundred :(

Indeed it is, but would you really base your investment decision on some advice you got from someone in a forum? They could be a teenager sat in their bedroom for all you know. As could I!

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Indeed it is, but would you really base your investment decision on some advice you got from someone in a forum? They could be a teenager sat in their bedroom for all you know. As could I!

At least, unlike a financial adviser, they are unlikely to have a financial vested interest in you signing up for business with them for maximum commission. You can judge for yourself how trust worthy a poster is by looking at his or her other posts.

Edited by penbat1

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I use administration facilities that make pensions, ISAs etc obsolete.

I like Ruffer, Miton and Ashburton for investing.

Did you know that it affects us twice as much losing money than gaining it. Hence I want my clients not to lose money in any calendar year ie absolute return investing using active multi asset class investing.

seek advice!

hth

fp

Yes - the problem is advice from who? I have sought financial advice from IFAs twice in my life. Both times I decided not to proceed with them. They all recommended products that made a good return for them (IFA tailored products) and had less than average performance measured against even simple high street products.

The last one I sought advice from, I specifically asked to pay for advice, rather than have him recommending products on commission. He spent three meetings talking me out of this, saying that if he had no stake in the products he was reccomending, what incentive would he have to give good advice? I went along with it for a while, waiting until he made some recommendations, then did some research of my own.

By the way, both of them drew exactly the same life-plan graph for me and said the same initial things. The last one also tried to get me to take out quite expensive income insurance and other policies, despite being single, no mortgage, no children. He also refused to believe that my income would not rise significantly, despite me telling him that my income wasn't that stable. Within a year I was in a different job on 40% less money (long story, not my plan, but that's how it worked out).

So forgive me if I have a less than good opinion of IFAs. They're probably great if you earn a lot in the first place. For the rest of us earning more averagely, without much stability, they don't seem to give good value for money.

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I have just requested to transfer money in my personal pension into different funds.

I expected UK and US markets to start to suffer shortly and wanted to move cash out of them as I believe it's important to move cash about to avoid losing money and to make the best returns, over the long run it should make a big difference, remove money when funds go down, put it in when they go up.

Anyway it's taken two weeks to have everything processed and the FTSE has fallen over 100 points in this time. It's criminal that I can't have more direct access to my pension decisions.

I have got a ScotEq personal pension in the UK. I did a pensions switch last summer (online) and it took ages to appear. But when they finally did do it, I chased it up and made sure that they backdated all the fund values it to the date when I initiated the switch (to catch the Japan bull run which I was expecting).

I think doing the switch online is good because then you have a record of when it was done. I think next time I might follow up with a letter just reaffirming the switch date and details.

frugalista

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So forgive me if I have a less than good opinion of IFAs. They're probably great if you earn a lot in the first place. For the rest of us earning more averagely, without much stability, they don't seem to give good value for money.

yep most ifas are cr4p - but remember ifa is only a technical term - it is not a mark of quality.

Edited by Financial Planner

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yep most ifas are cr4p - but remember ifa is only a technical term - it is not a mark of quality.

Too true. How do you determine if they're any good though? Would you say there are characteristics to look out for, positively or negatively?

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Too true. How do you determine if they're any good though? Would you say there are characteristics to look out for, positively or negatively?

Like dentists or builders I would have thought personal recommendation off someone you trust is a good idea.

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Too true. How do you determine if they're any good though? Would you say there are characteristics to look out for, positively or negatively?

Well, 2 things really:

How do they earn money - if only by selling products - just be cautious. As for me I earn by 2 ways - commission and fees and a) I only take a client on when I can add value and b ) the commission/fee pays for the agreed up front fee.

Qualifications - the gold standard is Chartered Financial Planner. Also good is Certified Financial Planner (CFP) and Dip PFS (don't ask!).

Happy hunting.

fp

Edited by Financial Planner

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Well, 2 things really:

How do they earn money - if only by selling products - just be cautious. As for me I earn by 2 ways - commission and fees and a) I only take a client on when I can add value and b ) the commission/fee pays for the agreed up front fee.

Qualifications - the gold standard is Chartered Financial Planner. Also good is Certified Financial Planner (CFP) and Dip PFS (don't ask!).

Happy hunting.

fp

Thanks - good to know.

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Too true. How do you determine if they're any good though? Would you say there are characteristics to look out for, positively or negatively?

what about asking them to show you some financial planning they have done for some other clients - obviously they would have to ensure there was no way of identifying the clients.

also have they got any testimonials from clients that they could show you.

difficult to find a good one though

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The problem with a personal pension is that you are paying for a state pension as well but wont get it by the time you retire.

Saving for the future in the UK is for mugs!!.

Best plan is, get yourself into rented accomadation at age 55, and offshore your money into property investments overseas. At 65 go cap in hand like everyone else and you will get heaps more.

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The problem with using an IFA recommended by a friend is that most people are such numpties about money that even if they have been royally shafted by the IFA they will believe they have had good advice because they like and trust the guy/woman.

My experience is that I am smarter than all the financial advisors I have encountered, but that I lack some of the crucial data that they have learned. I am trying hard to acquire as much of the relevant info as possible so that I never need to rely on someone else's advice for my financial planning.

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The problem with using an IFA recommended by a friend is that most people are such numpties about money that even if they have been royally shafted by the IFA they will believe they have had good advice because they like and trust the guy/woman.

My experience is that I am smarter than all the financial advisors I have encountered, but that I lack some of the crucial data that they have learned. I am trying hard to acquire as much of the relevant info as possible so that I never need to rely on someone else's advice for my financial planning.

Good idea...do your own homework if you can, after all it is your own hard earned money you are investing. Not always a good idea to rely on others to make money for you, it's those words VI again.

Why can't we be more trusting of others?

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I have just requested to transfer money in my personal pension into different funds.

I expected UK and US markets to start to suffer shortly and wanted to move cash out of them as I believe it's important to move cash about to avoid losing money and to make the best returns, over the long run it should make a big difference, remove money when funds go down, put it in when they go up.

Anyway it's taken two weeks to have everything processed and the FTSE has fallen over 100 points in this time. It's criminal that I can't have more direct access to my pension decisions.

On another note - what would anyone recommend going forward? I'm unsure what to do at the moment.

I've currently gone for;

Japan : 22%

Europe: 23%

Emerging: 8%

Cash: 47%

Cash until I can see a clearer picture forming, at over 5% it might even be the best performing fund over the next few years :(

My worst has been Prudential with profits - 18% growth over 6 years, less than 3% per year!!!

How bad is that?

Hi,

I think most pension providers will tend to process your request and move your fund at the end of the month and not the instant they get your request.

Also, don't get too swayed by a short-term/intermediate correction. What evidence have you weighed to think that equities are really in serious trouble? A sell off was always on the cards, so I'm staying with it until I get confirmation we are entering a bear market and not experiencing a short-term correction.

If the markets turn back up and start failing to make new highs we may have problems.

I feel your pain on the with profits thingy. I started one with Standard Life when I didn't know much better, would love to move my money out of SL to a more competent manager, say a trained chimp, but fear heavy penalties.

Hope this helps. I'm not one to put things in bold to emphasise a point but I think it's very important to wait for confirmation before interferring too much with your money pot.

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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