DIY v Financial Planner
Posted: March 28th, 2024, 7:11 pm
Hi all,
I retired just over 2 years ago, with a reasonable DB pension available. I decided to split it, retaining 2/3 as a DB pension,in payment, and 1/3 was transferred out. Full tax free lump sums were taken at the time.
Of course, to transfer out, I had to take advice from a financial planner, a local company taken over by a national network of financial planners. I was happy to let my pension be invested with the firm for at least the first year, whilst I improved my understanding, mainly through this site and links from this site. Following family issues, I didn't look at taking over the pension myself during the second year. Now, I am actively looking at the options, particularly as the financial planners fees are increasing from 0.65% to 0.8%.
So, I'm looking for a little help here...
1. Up to now, following a lot of comments and discussion in these forums, I was thinking it was an easy decision that I should move away from paid for advice to managing my own portfolio, geared around a selection of funds, with some diversity. However, I did some analysis of the performance of my portfolio, and was surprised by the results. I looked at the last 6 months (Sep-Feb), and found:
- Advised portfolio grew by 7.73% after fees
- Another small DC pension (<50K) grew by 4.1%
- selection of Vanguard funds I chose myself grew by 4.7% (ranging from 3.45% to 7.2%)
So this made me think twice. But when I look at previous 15 months (Jun 22 - Aug 23) performance, the advised portfolio was -1.67%, the DC was -5.62% - and I haven't delved into checking a range of trusts yet.
- Is there an easier way of an easy way of checking the general performance of a diversified basket of funds for comparison purposes? I would be looking mainly at passive funds, tracking markets at a global level, with limited UK exposure.
- Any thoughts on the performance of my advised portfolio?
2. The financial planners are managing my portfolio on the Scottish Widows platform (previously Embark).
- Am I right in thinking that if I ended my relationship with the firm, I would be able to continue with the current funds as-is on the SW platform? Though it appears at least one of the funds might be exclusive to the firm I am currently with.
- If I decided to go with a different provider/different platform, would all funds have to be sold off & rebought if necessary on the new platform?
3. Any suggestions on a provider? I'm thinking about Vanguard, as they will have funds that meet my requirements, are low-cost. I don't intend to dabble in equities, and activity woul dbe low once set up.
TIA
elkay
I retired just over 2 years ago, with a reasonable DB pension available. I decided to split it, retaining 2/3 as a DB pension,in payment, and 1/3 was transferred out. Full tax free lump sums were taken at the time.
Of course, to transfer out, I had to take advice from a financial planner, a local company taken over by a national network of financial planners. I was happy to let my pension be invested with the firm for at least the first year, whilst I improved my understanding, mainly through this site and links from this site. Following family issues, I didn't look at taking over the pension myself during the second year. Now, I am actively looking at the options, particularly as the financial planners fees are increasing from 0.65% to 0.8%.
So, I'm looking for a little help here...
1. Up to now, following a lot of comments and discussion in these forums, I was thinking it was an easy decision that I should move away from paid for advice to managing my own portfolio, geared around a selection of funds, with some diversity. However, I did some analysis of the performance of my portfolio, and was surprised by the results. I looked at the last 6 months (Sep-Feb), and found:
- Advised portfolio grew by 7.73% after fees
- Another small DC pension (<50K) grew by 4.1%
- selection of Vanguard funds I chose myself grew by 4.7% (ranging from 3.45% to 7.2%)
So this made me think twice. But when I look at previous 15 months (Jun 22 - Aug 23) performance, the advised portfolio was -1.67%, the DC was -5.62% - and I haven't delved into checking a range of trusts yet.
- Is there an easier way of an easy way of checking the general performance of a diversified basket of funds for comparison purposes? I would be looking mainly at passive funds, tracking markets at a global level, with limited UK exposure.
- Any thoughts on the performance of my advised portfolio?
2. The financial planners are managing my portfolio on the Scottish Widows platform (previously Embark).
- Am I right in thinking that if I ended my relationship with the firm, I would be able to continue with the current funds as-is on the SW platform? Though it appears at least one of the funds might be exclusive to the firm I am currently with.
- If I decided to go with a different provider/different platform, would all funds have to be sold off & rebought if necessary on the new platform?
3. Any suggestions on a provider? I'm thinking about Vanguard, as they will have funds that meet my requirements, are low-cost. I don't intend to dabble in equities, and activity woul dbe low once set up.
TIA
elkay