Financial advisor experience

[mikeIow]

Not spoken with Pension Wise but going to soon .
Still looking into the locked out pension, it's my wife's and been running many years, taken over by numerous companies over the years, never sent out annual statements, only contacted us to say action required, rang them today and we need to either appoint an advisor,apparently there was an advisor appointed for years but no longer in business or we need to move it .

Curiouser & curiouser!
When you say it’s been running many years - is she actively contributing to it, or does it just “exist” with a pot?
I am pretty sure they are legally obliged to give an annual update, confirmed here. Worth asking where those annual statements have gone first!

Is the contact official, or could this be a scam?

On the topic of financial advisors: I have two good friends who have SJP advisors.
Firstly, note that SJP are *not* Independent - the “I” in IFA.
The choice for advice really should be either an IFA or DIY. If you do choose to get a financial advisor, be sure they are IFAs, not just FA.
Secondly, I am firmly convinced they could both have given up work earlier had they wanted: remember, any financial advisor cannot afford for a client to run out of money, so have to ensure their pot is 100% safe, which naturally means working longer. I saw a recent James Shack video where he aimed for 80-90% success rate for things - the future is ALWAYS uncertain, & if people are flexible enough, they can adjust to unforeseen changes ahead 🤷‍♂️
What you cannot do is get more years back - time is the one thing that is absolutely running out for all of us 🫣

It is also naturally an advisors role to becoming a “good friend of the family”. Nothing wrong with that - you have to fully trust them - but it always feels an odd position to me.
I use an accountant, but he does a job for me for a reasonable price & that is that 🤓
My friends are pleased that their FAs buy them lunch once a year: I figure they have paid them handsomely over many years for that privilege…….But…it’s their money, so we don’t talk money any more 🤣

 

[Jameshow]

Curiouser & curiouser!
When you say it’s been running many years - is she actively contributing to it, or does it just “exist” with a pot?
I am pretty sure they are legally obliged to give an annual update, confirmed here. Worth asking where those annual statements have gone first!

Is the contact official, or could this be a scam?

On the topic of financial advisors: I have two good friends who have SJP advisors.
Firstly, note that SJP are *not* Independent - the “I” in IFA.
The choice for advice really should be either an IFA or DIY. If you do choose to get a financial advisor, be sure they are IFAs, not just FA.
Secondly, I am firmly convinced they could both have given up work earlier had they wanted: remember, any financial advisor cannot afford for a client to run out of money, so have to ensure their pot is 100% safe, which naturally means working longer. I saw a recent James Shack video where he aimed for 80-90% success rate for things - the future is ALWAYS uncertain, & if people are flexible enough, they can adjust to unforeseen changes ahead 🤷‍♂️
What you cannot do is get more years back - time is the one thing that is absolutely running out for all of us 🫣

It is also naturally an advisors role to becoming a “good friend of the family”. Nothing wrong with that - you have to fully trust them - but it always feels an odd position to me.
I use an accountant, but he does a job for me for a reasonable price & that is that 🤓
My friends are pleased that their FAs buy them lunch once a year: I figure they have paid them handsomely over many years for that privilege…….But…it’s their money, so we don’t talk money any more 🤣

SJP???

I have a brother in-law who an tax accountant so has a decent handle plus a freind whose a company accountant.

 

[PeteXXX]

If I remember correctly, Pension wise will not, and cannot, give you advice, only guidance.
I could be wrong, though.

 

[Gunk]

For me this is the point at which the advice changes, my FA is now my Financial Planner. She provides me with cash flow forecasts based on my savings, income, current and future needs.

Same here and the income forecasts are really useful, they help plan for the future.

 

[teeonethousand]

I have a few separate pots and consolidated them into one SIPP.

I don't believe anyone knows how things will be in the future so you are paying for their guess....instead you could do your own research or simply copy a successful fund etc. It depends on your confidence to sort it and research things you don't know and finally make judgements. A lot of folks I know have no idea at all about money and seemingly don't want to do so happy to pay others

After a while I stopped worrying about money running out .....it's time running out that's the big problem.

 

[PaulSB]

I have a few separate pots and consolidated them into one SIPP.

I don't believe anyone knows how things will be in the future so you are paying for their guess....instead you could do your own research or simply copy a successful fund etc. It depends on your confidence to sort it and research things you don't know and finally make judgements. A lot of folks I know have no idea at all about money and seemingly don't want to do so happy to pay others

After a while I stopped worrying about money running out .....it's time running out that's the big problem.

It's true no one can know what the future holds but someone with the necessary skills and historical data can make a better "guess" (it isn't really a guess) than someone without those skills.

I agree time is far more important than money. I have begun using paid services such as a landscaper to do jobs I'm capable of myself. The time this frees up is worth far more than £sd. I'm planning on another 20 years, minimum, and I like the comfort of a knowledgeable forecast behind me.

 

[PaulSB]

On the subject of financial planning my FA's company is running the article linked below in their weekly newsletter. I'm not on commission!

KBA

 

[ren531]

Curiouser & curiouser!
When you say it’s been running many years - is she actively contributing to it, or does it just “exist” with a pot?
I am pretty sure they are legally obliged to give an annual update, confirmed here. Worth asking where those annual statements have gone first!

Is the contact official, or could this be a scam?

On the topic of financial advisors: I have two good friends who have SJP advisors.
Firstly, note that SJP are *not* Independent - the “I” in IFA.
The choice for advice really should be either an IFA or DIY. If you do choose to get a financial advisor, be sure they are IFAs, not just FA.
Secondly, I am firmly convinced they could both have given up work earlier had they wanted: remember, any financial advisor cannot afford for a client to run out of money, so have to ensure their pot is 100% safe, which naturally means working longer. I saw a recent James Shack video where he aimed for 80-90% success rate for things - the future is ALWAYS uncertain, & if people are flexible enough, they can adjust to unforeseen changes ahead 🤷‍♂️
What you cannot do is get more years back - time is the one thing that is absolutely running out for all of us 🫣

It is also naturally an advisors role to becoming a “good friend of the family”. Nothing wrong with that - you have to fully trust them - but it always feels an odd position to me.
I use an accountant, but he does a job for me for a reasonable price & that is that 🤓
My friends are pleased that their FAs buy them lunch once a year: I figure they have paid them handsomely over many years for that privilege…….But…it’s their money, so we don’t talk money any more 🤣

Still contributing to the pot and the issue of the missing annual statements is one of our questions to them, genuine contact, we did some research into them before we contacted them.

 

[ren531]

I have been with the same FA for +/-20 years. We have become firm friends and I trust her implicitly. Over time she has taken the trouble to understand me, my family, our hopes and aspirations. Broadly speaking I feel one needs advice with two different objectives; during one's working life how best to provide for retirement and in the run up to retirement how to manage those funds. As you're about to access your pensions you are, I presume, looking for advice on how to manage those funds.

For me this is the point at which the advice changes, my FA is now my Financial Planner. She provides me with cash flow forecasts based on my savings, income, current and future needs. I understand the likely outcome of any financial decision I consider or make and clearly understand the impact of any "what if" scenario. Before retiring I analysed a full year's expenditure to understand our spending. This information underpins the cashflow forecast and when coupled with income and savings shows very clearly what one can afford to do.

My view is one needs a clear financial plan with an understanding of the "what ifs" before one can make a decision on when and how to access pensions. I can easily put together a good analysis of my annual spending, trying to forecast the performance of my savings and pensions is way beyond my ability. Without a Financial Advisor/Planner I wouldn't be able to understand my situation, with one I know the likely outcome of any decisions I make and don't have to worry at night. It is a question of understanding the whole picture and not taking different areas in isolation.

I'm sure there are FAs who don't always act entirely in the client's best interest but I feel sure these are far outweighed by thousands of hardworking, trustworthy individuals. As for the cost? Can one afford not to take such advice? I view my FA's fees as a part of my investment in my future.

I should add, we are not wealthy people, just ordinary folk who have worked and now enjoy a small private pension and state pension.

Thanks for your input and experience
all interesting stuff.

 

[mikeIow]

Still contributing to the pot and the issue of the missing annual statements is one of our questions to them, genuine contact, we did some research into them before we contacted them.

Mmmm….. feels like a formal complaint is in order - they have been failing in their regulatory duties!

Good luck!

 

[Once a Wheeler]

Join Which? The Consumers' Association and use them to find the right adviser for you.

 

[derrick]

Avoid like the plague, unless you know you can trust them 100% Got ripped o when i was young, would never trust another one, My son in law is an accountent, if i need anything to with money i would talk to him.

 

[Dave7]

Going back 15 years I sold my small company for a decent wedge. I was with TSB and as my money was over a certain amount they provided me with an IFA. He was very good. I split my money into 2 companies ** and they both gave good results.
**I am not brave with money so went with "safe" investments and as I say they both worked out well.
IMO a good IFA is really worth it.

 

[JohnHughes307]

Not spoken with Pension Wise but going to soon .
Still looking into the locked out pension, it's my wife's and been running many years, taken over by numerous companies over the years, never sent out annual statements, only contacted us to say action required, rang them today and we need to either appoint an advisor,apparently there was an advisor appointed for years but no longer in business or we need to move it .

One of mine was like that - it had been setup by an agent years before and they only offered an equity or move as options. I just moved it to one of my others which allows flexibility. I also have one which is locked - in that I can't add anything to it because it was a company scheme for a company that no longer exists. I've left that where it is for the moment.
For what it is worth I am trying a simple strategy of UFPLS drawdowns but limiting it to 4% of my pot per annum and I'll see how it goes.

 

[gbb]

The one area PWise did touch on was how taxes on lump sums would be collected, and how your tax code would change on payment of any lump sums by the pension provider..., I understood but didnt understand if that makes sense. In essence, i paid a lot more tax Initially (around 30% as it turned out) and hope and assume at the end of the year, once my work pay before retirement, my state pension and lump sum has been calculated, then I will be due a rebate...or perhaps get a bill because I've underpaid. Because at the time e of cashing in, I didn't know how much I'd actually get in the bank, it's difficult to u derstand where I would be at the end of the financial year.
Even once you pull the trigger, there are unknowns that's difficult to take into account.. I'd guess that's where a IFA would benefit you, give you a more concrete idea of outcomes.