IFA Retiring, Portfolio Advice Needed tiptop77

#1
Hi all, I've been reading the forum for a while but have finally signed up to ask advice.



My IFA has managed my portfolio for 13 years but recently has become harder and harder to get hold of when I have queries, as he closed his town centre office and now works from home. As suspected, he has now announced that he's retiring, so I need to either look for a new IFA or go it alone.



I've mostly left portfolio picks to the IFA in the past, but now feel that I want to understand the ins and outs of investing better, even if I do end up going with another IFA instead of DIY. I'd appreciate any input on my current investment holdings, as I'm looking at the Fidelity X-Ray report and trying to make sense of it.



Background:

- 37, no spouse, no children, no pension.

- Currently looking at setting up a work pension (I am a company director of a small limited company, owned equally with my cousin).

- I have a recent inheritance to invest, which is in the mid six figures. It's currently held in high interest accounts, regular savers and NS&I while I decide where to invest it.

- I own my home with no mortgage and have a half share in a rental property, which has no mortgage. These two properties currently make up about a third of my total net worth.

- I have a medium risk profile and would maintain or increase holdings during a downturn.

- I'm currently renovating my house and will be keeping back 70k in cash; 50k for building work including budget buffer and 20k general emergency fund.



Goals: to exit or reduce my involvement in my current business in the next 5-7 years, with the eventual aim of having more time for travel & other interests. I may need to switch a small part of the investments from accumulation to income at that time, but most income will come from property rental and other business interests. I'm aiming at about 55 for full retirement and drawdown.



I currently have 39k in a Cash ISA which I'll probably be transferring to an S&S ISA shortly.

133k is in a Fidelity S&S ISA (IFA selected) which includes:



Fidelity Special Situations W Acc 14.78%

Schroder Mid 250 Z Acc 13.94%

L&G High Income I Acc 13.49%

Henderson Fixed Intr Mth Inc I Inc 12.88%

Jupiter Financial Opportunities I Inc 12.73%

Fidelity European W Acc 10.16%

Fidelity Global Special Situations W Acc 7.56%

JPM Emerging Markets B Net Acc 5.61%

Stewart Investors Wldwd Ldrs B Acc GBP 5.23%

M&G Global Basics GBP I Acc 3.62%



What are your opinions of the above choices? I think I'm possibly too EU weighted and a little overweight in bonds. I'm thinking of transferring the Cash ISA & Fidelity holdings into VLS80, which seems to fit my risk profile. Any other advice or areas to research?

#2
Welcome to the forum!



I'm new here, so I'm not of any use, sadly. I'm sure someone will be along soon who can be.





I was curious at where these "high interest accounts" are, though? Unless one has just come out, they don't exist anymore...?

#3



I was curious at where these "high interest accounts" are, though? Unless one has just come out, they don't exist anymore...?
Originally posted by jdw2000


Nothing has "just come out" but the accounts have been available for the last 4 years or so. The link is still on the forum home page as it has been for much of that time.






Background:

- 37, no spouse, no children, no pension.

- Currently looking at setting up a work pension (I am a company director of a small limited company, owned equally with my cousin).

- I have a recent inheritance to invest, which is in the mid six figures. It's currently held in high interest accounts, regular savers and NS&I while I decide where to invest it.
Originally posted by tiptop77


I'm really puzzled by this if you've been using an IFA and not setup any pension. Was that something they suggested and you turned down? As a director it just seems a really strange omission especially over such an extended time.



The portfolio overall looks a bit of a mix and I'd probably agree with your assessment about bonds although that would ramp you up the risk scale. The exposure to USA and Far East is missing and it seems quite biased to Fidelity.

#4



Nothing has "just come out" but the accounts have been available for the last 4 years or so. The link is still on the forum home page as it has been for much of that time.

Originally posted by jimjames


I was just being flippant about the fact that "high interest" accounts don't exist. I was trying to ask him what his nearest approximation of a high interest account is.

#5



Nothing has "just come out" but the accounts have been available for the last 4 years or so. The link is still on the forum home page as it has been for much of that time.





I'm really puzzled by this if you've been using an IFA and not setup any pension. Was that something they suggested and you turned down? As a director it just seems a really strange omission especially over such an extended time.



The portfolio overall looks a bit of a mix and I'd probably agree with your assessment about bonds although that would ramp you up the risk scale. The exposure to USA and Far East is missing and it seems quite biased to Fidelity.
Originally posted by jimjames


My thought as well, gobsmacked that after 13 years with an IFA there's no pension. And not specially impressed by those funds either, all very specialist and focussed, id have expected a backbone of more global or even U.K. Funds



OP, your affairs seem pretty complex and your knowledge limited, I would suggest looking for another IFA. See a few, discard any that don't mention pension.

#6
Given that the OP would appear to be a higher-rate tax payer (I assume, given his financial status and company directorship), it's even more surprising that he doesn't have a pension in order to avoid the 40% tax.

#7
To clarify, I'm not currently a higher rate taxpayer, although suspect that I may be in that bracket in the17/18 financial year. We've been a Limited company since 2013 (a partnership before then), so the pension situation was slightly different. The IFA recommended that we use ISAs rather than a pension at the time. In hindsight I'm not at all sure that this was the best option, but that's why I've become more and more unhappy with the advice given and service (or lack of it) over the last few years.



Unfortunately there's not much choice of IFAs around here, but I had a meeting with another one recently. It went okay, but fees were high at 1.5%, and he went off on such jargon-filled sidetracks that I ended up getting completely lost and confused in places. Another thing that put me off was that he looked at our figures, hmmm'd and said that pensions 'might be worth looking at again now', when everything I've been researching indicates that it should be a top priority for us. I'm planning to set up a few meetings further afield and see how it goes.

#8



To clarify, I'm not currently a higher rate taxpayer, although suspect that I may be in that bracket in the17/18 financial year. We've been a Limited company since 2013 (a partnership before then), so the pension situation was slightly different. The IFA recommended that we use ISAs rather than a pension at the time. In hindsight I'm not at all sure that this was the best option, but that's why I've become more and more unhappy with the advice given and service (or lack of it) over the last few years.



Unfortunately there's not much choice of IFAs around here, but I had a meeting with another one recently. It went okay, but fees were high at 1.5%, and he went off on such jargon-filled sidetracks that I ended up getting completely lost and confused in places. Another thing that put me off was that he looked at our figures, hmmm'd and said that pensions 'might be worth looking at again now', when everything I've been researching indicates that it should be a top priority for us. I'm planning to set up a few meetings further afield and see how it goes.
Originally posted by tiptop77




As I said, I'm new, so don't listen to me. But to give you something to chew on till the more knowledgeable posters give you their tuppence...





I'd suggest you have one of the following two options:



1) DIY option would be a low-cost tracker, on the cheapest platform you can find. You've already mentioned VLS, but that is not the only game in town. L&G Multi Index funds are apparently good (although my platform, Halifax, doesn't do that fund).



2) Active funds which are selected, such as the ones you currently have. This will almost certainly involve getting an IFA, as the research time alone would make it worth your while.





You're talking about big sums there. Have you thought about investing it instead in another property?

#9



I was curious at where these "high interest accounts" are, though? Unless one has just come out, they don't exist anymore...?
Originally posted by jdw2000


You've mentioned one yourself on another thread.

Unless I've missed something, there's still one current account and four regular savers paying twenty times BOE rate.

#10



You've mentioned one yourself on another thread.

Unless I've missed something, there's still one current account and four regular savers paying twenty times BOE rate.
Originally posted by Eco Miser


For 2.5k! Look at the numbers he's talking about.

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