« Last post by armaghniac on Today at 02:10:41 PM »
I suspect I went to a better school, you seem to have attended the Jim Allister school of discussion.
It was even worse because the run up to the crash saw a lot of prudent margins stripped out of banks and bet on asset prices with the reassurance that transparency and the vigilant eyes of the ratings agencies would keep risk under control.How do your charge your clients?
i) a fixed rate
ii) charge as a percentage of the investment or
iii) charge based on profits earned because of the advice you provided?
An adviser will normally charge for the time spent organising a pension/investment portfolio (like an accountant/solicitor) and there would be a charge for an annual review of the portfolio. We have an online system where clients can check the valuation 24/7 and if they have any concerns they can contact us between reviews.
The charge for the ongoing annual reviews are normally based on a (very small) percentage of the fund value (typically 0.5%) so there is a vested interest in growing the client's fund on an ongoing basis.
The other charges taken out of pensions have been exaggerated by some earlier in the thread. The only other charge taken from the pension portfolios I would have any involvement in would be an annual management charge levied by the fund manager (1 to 2%).
There has been some confusion on different types of pension with Muppet talking about pension funds being in deficit, these are typically very large occupational schemes where fund charges may be higher. These are the pensions where trustees, solicitors etc. are involved. These pensions typically give the employee a certain benefit at retirement and it is the employer who takes the risks and pays the charges. I am talking from my experience in the North, things may be different in the South.
As I have been described as a risk averse person my worry would be that an advisor would not treat the money as if it were their own. While there are incentives for you to grow the investment, is there a disincentive or penalty if value falls? This could be done by way of paying back performance related bonus from the previous year? I met an "independent" advisor once and God help anyone with money who trusted him. To get out of the meeting I told him I'd invest and rang him an hour later and told him I'd changed my mind.
As an advisor you say it would be impossible for you to have foreseen the crash but that you would advise anyone close to retirement to not hold money in equity. Did you advise anyone who was due to retire in 2010 to sell their shares in Irish Banks in 2005?
I think in your case there is little incentive to use an adviser as you have said you woudl go into low risk gilts etc. In general there is little you can do to "grow" these above the headline return rate, they pretty much do what they say on the tin.
On the second question, without answering for Mackers, I would say it depends what your adviser has been asked to do. If he is specifically advising on strategy, i.e. stock market good longterm, then move into gilts, I would imagine that five years pre retirement you woudl have been advised to get out of most equities. However, if you are asking him specifically on whether to invest in a particular share or class of shares (Irish Bankls) , then you are into stockbroker/investor analyst territory and there is very different regulations and structures in place.
As Seafoid said earlier, the way the Rating Agencies came out of the whole fiasco 2008-12 is an absolute disgrace.
Dont think anyone would begrudge Gerrard moving to another club to try for a League medal.
And not a cent in promoting people to install rainwater harvesting systems for toilets, watering garden and washing carsI agree 100% with such initiatives. It's a waste that water treated to drinking standard is used to flush toilets. But surely it's up to the general public to take some initiative. It's no different than turning down the thermostat or changing to low energy bulbs to reduce your energy use and bills.
I'd be careful before throwing money into a gym
you need a culture among the playing members of the club to use such a facility, plus the proper instruction and skillset among coaches to put it to full use.
if the aim was to use the gym for pre season and through the playing season then a hall with some dumbbells, med balls and other simple equipment could do the same job.
Man United fans worried about Steven Gs future.