FAQ'S AND OBJECTIONS

Over the years we have met different fears and objections, so let us try and address some of those;

 

 

Q1)  What is stopping you from running off with my money?

 

Other than it would be theft and fraud, this question shows misunderstanding of Anti Money Laundering policies

 

We have neither the ability or the inclination.  

 

Nobody could access your capital without various checks and even then it may only be paid into a UK bank account registered in your name. 

 

All of the scams we have seen first hand resulted from people trying to avoid professional services to save on fees  -  If I represented myself at court and lost, I would not be surprised

 

Use the correct channels and view investment fees as an incentive and protection for the portfolio to flourish

 

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Q2) So you could pick a random provider or manager that I’ve never heard of and I have to trust that?

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Yes, that is called being Independent.  It isn't an issue for us (as we are familiar with all of the firms), so if you only wish to see giant household names within your recommendations please let us know at the first meeting and we shall accommodate.  

 

We can't promise that those multi-million-pound offices were achieved by being the best value provider to the clients, but if that brand name is important for your peace of mind we can apply a filter for you.

 

We don't use random backwater firms.  It is  through extensive research that we generate our advice and as such, all of our recommendations are insured and regulated. 

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Q3)  I could do it myself and save the fees

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Oh yes.  The DIY passive investor that bets on below sector average returns in order to save on fees.

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The fundamental point is that you would not achieve the same results as us within the same parameters.  

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If I had a pension that charged me no fees and made 3% per annum, would that be preferable to one that charged 2.5% per annum that yielded 7% per annum?  

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Why would I put my life savings into a fund that is guaranteed to underperform the markets? (that's what tracker and index funds do afterall)

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The sensible approach is to ensure that whatever the fees are, the performance and overall returns justify those fees.  Our firm must pay for our desk.  

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A good IFA firm is self-funded through returns and tax efficiencies.

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I have not met a client yet whose financial position we have not improved compared to their own attempts. 

 

I spoke previously with a  sensible guy, good job, intelligent, yet he had his entire pension and savings invested in 4 funds recommended by a workmate.  He doesn't know it but he is entirely in one asset class with zero diversification.  Bonkers but blind to the danger because his mate who is 'astute' and 'knows what he is doing' has recommended those funds.  

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The workmate had even created a spreadsheet to show how much advice fees would erode the returns over time, but that would mean he would gain the same returns over same period as a team of full time, qualified professionals...

 

FT Jan 24;

When Mr XXXX got access to his pension aged 55, he had £220,000 in his pot but is now left with just £3,000. 

The 62-year-old told FT that he lost most of his pension in just three years by being able to put his savings into high-risk investments within his DIY Sipp.

The FTSE-100 listed pension company said there was nothing they can do to help Mr XXXX further.

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Need we say any more?

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Q4)  I just need a form signing, I know what I am doing

 

We can only sign off our own work.

We made the decision that to avoid causing any offence we would deny sign-offs across the board, irrespective of the fees being forfeited.​

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Q5)  My existing provider says your work could be a scam and they are safer.

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This is a common issue now and should be addressed by the regulator.  This disturbance technique is employed to retain your capital.  

 

If the old provider was the best environment to hold your capital, we would of course recommend them.  It's a sour taste that the fear of being scammed is used as a technique for the old providers to retain capital despite being uncompetitive.

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Q6)  Cash is better & it's free!

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Cash is not free - interest awarded is always below inflation, usually around 2% below as it currently stands.  That is effectively the bank's fee as they buy their cash wholesale (Libor).  Would you expressly pay 2% pa for cash account if it was made clear?  

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The 5% Cash ISA awarded for £1000per month regular contributions for 1yr is great, but only 1 payment of the £1,000pm was in there for 1 year, so it really works out at less than 3% interest.  Clever marketing.

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