£350m "black hole" in the Arcadia Pension fund. I'm glad I didn't mis-sell that one.
Give me a personal pension over a privare sector DC scheme anyday.
Unless you went to Equitable Life. I went with them many years ago until their GARs destroyed the company - I have no idea what the actuaries were doing with this as it took no account that inflation/interest rates might fall.
Financial regulators are useless as this showed. One of the UK's oldest companies were effectively running a pyramid scheme.
Anyone in the business (like me) knew Equitable Life couldn't keep it up. GAR's were old hat in the early 90's but Equitable kept on pushing them & people kept investing with them......mainly because their ads said that they didn't pay commission to (nasty smelly) salesmen. 🤔
GARs are obviously nonsensical so I'm not really clear how this was allowed to happen? They had been going since 1762 which is perhaps why people thought they might be trustworthy?
There are also plenty of bad financial advisors out there as well - I obviously am not including you in this!
Financial products are a minefield and getting good advice is difficult. Make the wrong decision and you can lose a fortune.
Who can you trust?
Obviously I would say this but......always speak to a Financial Advisor, preferably a "whole of market" one (the term has now sadly superseded "Independent"). Either by referral from a friend or colleague or failing that by looking up the FCA register.
The advisor market has really been cleaned up since the 1980's. No more dodgy ex-car salesmen (yes, I've worked with a few of them in the past) as the level of Compliance & testing that goes on now has weeded them out.
I need a review of my pension arrangements from somebody in my local area, SE10 - hard to know who to go to as recommendations may not be objective. Difficult to know where to start.
Something I should have done a few years ago.
Are you suggesting that a financial advisor might recommend a course of action that is not in your best interests and merely trying to line his own pocket ?
As per usual my Father in law won, £150. It's now been over 3 years since he last didn't win and only 4 times has he won less than £100! Some people get all the luck.
£50 for me; first win for ages! Just moved a chunk of money from a cash ISA back into Premium Bonds. Trying to summon up the courage to buy some Cineworld shares!
As per usual my Father in law won, £150. It's now been over 3 years since he last didn't win and only 4 times has he won less than £100! Some people get all the luck.
Incredible! The odds on that happening must be pretty high.
As per usual my Father in law won, £150. It's now been over 3 years since he last didn't win and only 4 times has he won less than £100! Some people get all the luck.
Incredible! The odds on that happening must be pretty high.
It's become a standing joke in our family, as you say, the odds must be pretty high even though he does have the maximum amount.
As per usual my Father in law won, £150. It's now been over 3 years since he last didn't win and only 4 times has he won less than £100! Some people get all the luck.
Incredible! The odds on that happening must be pretty high.
It's become a standing joke in our family, as you say, the odds must be pretty high even though he does have the maximum amount.
So do I. I think I got £150, once, since I lifted it to the max, which would be over 2 years ago, after we settled my late Mum's estate.
On the other hand, as I mentioned I used the last dip in markets to invest into three Baillie Gifford funds, inspired by @golfaddick confidence in the house. So just over 4 weeks ago. Here is how those investments stand now:
Global Discovery +8.8% Managed: +6.3% Positive Change: +12.2%
Of course what I invested is way less than what I have in Premium Bonds. If only I had more bottle....
£50 for me; first win for ages! Just moved a chunk of money from a cash ISA back into Premium Bonds. Trying to summon up the courage to buy some Cineworld shares!
Would have been better moving your Cash ISA into a Stocks & Shares one if you were looking for a better return. You've now lost all that tax-free money. Yes, PB's are tax free but you can't get back the ISA allowance you have now lost forever.
This is the first draw after the prize winning rates have been cut. Less money in the prize pot, less winners. Get used to reduced prizes I'm afraid.
Yes, this I'm afraid. The Government have to pay for Covid somehow & the quickest & easier way is to use existing money. What better than the millions & millions just sitting idly in NS&I. Give the public the catch of "security" and the chance to win the "big one" and they will fall for it.
I'll just keep topping up my Pension & ISA. All that lovely tax-free growth......with all the protection that the FCA has ensured.
On the other hand, as I mentioned I used the last dip in markets to invest into three Baillie Gifford funds, inspired by @golfaddick confidence in the house. So just over 4 weeks ago. Here is how those investments stand now:
Global Discovery +8.8% Managed: +6.3% Positive Change: +12.2%
Of course what I invested is way less than what I have in Premium Bonds. If only I had more bottle....
Baillie G are very good funds, I switched my ISA provider in Feb (Edit May having just checked) this year and on the two of their funds I have this as the result. Should have lumped everything in there!
My SIPP I switched a month later and some more about 3 months later and again the result on 5 funds; Bonds obviously have performed not as well but I like a balance
On the other hand, as I mentioned I used the last dip in markets to invest into three Baillie Gifford funds, inspired by @golfaddick confidence in the house. So just over 4 weeks ago. Here is how those investments stand now:
Global Discovery +8.8% Managed: +6.3% Positive Change: +12.2%
Of course what I invested is way less than what I have in Premium Bonds. If only I had more bottle....
Baillie G are very good funds, I switched my ISA provider in Feb (Edit May having just checked) this year and on the two of their funds I have this as the result. Should have lumped everything in there!
My SIPP I switched a month later and some more about 3 months later and again the result on 5 funds; Bonds obviously have performed not as well but I like a balance
Vanguard in my ISA are doing OK as well;
It would be interesting to see the Vanguard US Equity fund side-by-side with the BG American one. On those figures the BG one has outperformed by around 10% but I don't think they are over the same time span (according to you)
£50 for me; first win for ages! Just moved a chunk of money from a cash ISA back into Premium Bonds. Trying to summon up the courage to buy some Cineworld shares!
Would have been better moving your Cash ISA into a Stocks & Shares one if you were looking for a better return. You've now lost all that tax-free money. Yes, PB's are tax free but you can't get back the ISA allowance you have now lost forever.
Thanks Golfie. Met halfway and bought the Cineworld shares I was thinking about after my original post.
Might use that in front of clients 😀 to show the difference between passive & active managment. And don't forget, the 3 & 5 year figures are annualised......so for 3 years its 136% v 40%.
Might use that in front of clients 😀 to show the difference between passive & active managment. And don't forget, the 3 & 5 year figures are annualised......so for 3 years its 136% v 40%.
No worries, if you need any financial advice my fee's are very reasonable
Yes annualised for the three and five year, as you say £10k in for the three year becomes roughly 24,000 and 14,000 so a sizeable difference, if you had £100k to start thats roughly 240,000 v 140,000............. wowzer!
I'd say it says a great deal about Baillie Gifford but the vast majority of the far too many active funds out there do not deliver such returns and fail to beat passives like Vanguard. That's well documented (see e.g Bestinvest's annual Spot the Dog)
Also.,, are those gains after deduction of respective management fees, because that's the other issue with active vs passive?
I'd say it says a great deal about Baillie Gifford but the vast majority of the far too many active funds out there do not deliver such returns and fail to beat passives like Vanguard. That's well documented (see e.g Bestinvest's annual Spot the Dog)
Also.,, are those gains after deduction of respective management fees, because that's the other issue with active vs passive?
I believe it's performance of the fund so not including fees. Fee's between the two are 0.5% and 0.1% so yes a difference but not huge when you look at performance.
I'd say it says a great deal about Baillie Gifford but the vast majority of the far too many active funds out there do not deliver such returns and fail to beat passives like Vanguard. That's well documented (see e.g Bestinvest's annual Spot the Dog)
Also.,, are those gains after deduction of respective management fees, because that's the other issue with active vs passive?
I believe it's performance of the fund so not including fees. Fee's between the two are 0.5% and 0.1% so yes a difference but not huge when you look at performance.
It will include all fees, otherwise how else would they be deducted. The price / value of your funds once invested will then include all fees when you get any valuations.
Which is why the difference between the 2 funds values over the longer term is testament to us advisers who recommend active funds over passive. Imagine you've invested in the Vanguard fund because you didn't want to pay BG 1% pa. Bonkers. I understand what @PragueAddick is saying that there are lots & lots of poorly performing funds......but that is why people should take advice. I do get a bit peeved at times when people can't see the value I provide.
Comments
Hoping for beginners' luck !
Global Discovery +8.8%
Managed: +6.3%
Positive Change: +12.2%
Of course what I invested is way less than what I have in Premium Bonds. If only I had more bottle....
I'll just keep topping up my Pension & ISA. All that lovely tax-free growth......with all the protection that the FCA has ensured.
Just checked on the app. £25!
My SIPP I switched a month later and some more about 3 months later and again the result on 5 funds; Bonds obviously have performed not as well but I like a balance
Vanguard in my ISA are doing OK as well;
Might use that in front of clients 😀 to show the difference between passive & active managment. And don't forget, the 3 & 5 year figures are annualised......so for 3 years its 136% v 40%.
Yes annualised for the three and five year, as you say £10k in for the three year becomes roughly 24,000 and 14,000 so a sizeable difference, if you had £100k to start thats roughly 240,000 v 140,000............. wowzer!
Also.,, are those gains after deduction of respective management fees, because that's the other issue with active vs passive?
The returns are quite amazing and have certainly made wfh more interesting with learning and focus.
@PragueAddick, you did well buying on the dip at a time people would have thought most of the gains will have been made by now.
Which is why the difference between the 2 funds values over the longer term is testament to us advisers who recommend active funds over passive. Imagine you've invested in the Vanguard fund because you didn't want to pay BG 1% pa. Bonkers. I understand what @PragueAddick is saying that there are lots & lots of poorly performing funds......but that is why people should take advice. I do get a bit peeved at times when people can't see the value I provide.