Independent Financial Advice?

Hello There,

I am hoping to taske a career break from work soon and become a stay at home mum.
I've been working for about 15 years, have 2 different company pensions, an investment property and a bit of cash in various policies

I would really like some advice about what to do with my pensions, and how to optimise my other investments. I have contacted a few advisers, but they turn out to be brokers and try to sell me other policies.

Is there such thing as independent advice - I don't mind paying a consultant?

Any recommendations would be great.

Thanks

Missie
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Where are you based?

Missie said:

Is there such thing as independent advice - I don't mind paying a consultant?

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Yes - authorised advisor or a good multi-agency intermediary. Avoid tied agents unless you know what you want to buy from them in advance. IFSRA can give you a list of registered intermediaries but you will probably want to choose one based on recommendations. Some of the AA/MAI discount brokers who contribute to this site also offer advisory services so might be worth trying.

Hi

CCOVICH - I'm based in Dublin

Clubman, Thanks I'll check out the IFSRA list

Missie
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I have never used them but MoneyDoctor have been recommended before.

The IFSRA list is available here, or by contacting them directly.

There is not alot of choice for what you can do with your pension ,you generally leave it in your old companys scheme unless you join another scheme in the future and want to transfer it to that scheme. This is ok as it will be invested and will be growing in value hopefully

I think people should have more confidence in making their own decisions re their investments rather than relying on an advisor,especially small investors.
People know if they put money in a bank account it is safe and they get x% interest,but they want more than that but are afraid of risk. So generally what they want is an advisor to tell them they are making the right investment decision and it is safe and will make good returns,whereas no advisor can do that if you are investing in the stock market

All the information you need is online,do your own research,read the savings section of eagle star ,irish life ,davys etc etc and look at what they are offering,decide what level of risk you want ,look to pay the lowest charges possible.

Research shows that one of the reasons that certain funds for example can chug along for years making less than average returns is investor inertia. If you are in an investment and it turns out to be a dog you have to cut your losses,wheras if the overall stock market is down it makes sense to hang on till the markets bounce back as they did after 2001.

I am saying this because there are lots of posts continually looking for financial advisors whereas in fact most people especially those subscribing to sites like this have the wherewithal to be their own financial advisor.

Very well said Capall!

capall said:

There is not alot of choice for what you can do with your pension ,you generally leave it in your old companys scheme unless you join another scheme in the future and want to transfer it to that scheme. This is ok as it will be invested and will be growing in value hopefully

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You can also transfer the paid up/parked occupational pension funds to a buy out/pension retirement bond which is a standalone individually owned pension investment. This might save having to chase scheme trustees in years to come, might offer more fund choices and could offer more attractive charging structures (including > 100% allocation rate on transfer depending on the amount in the fund). Since you cannot cash in the pensions the key thing is to (a) make sure that the money is invested in the most suitable fund(s) for your specific needs (chances are if you have a while to go to retirement this means high equity content/high risk-reward) and you minimise charges as much as possible.

Your other financial requirements should be driven by your short, medium and long term plans in life. The key posts section and, in particular, the IFSRA and AAM guides to savings & investments are good overviews about how to approach such planning.

I think people should have more confidence in making their own decisions re their investments rather than relying on an advisor,especially small investors.

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Yes - but in many cases people don't know enough to make the best/most appropriate/most prudent choices, are not willing to spend the time learning and also may not be the most objective observers of their own sitautions.

So generally what they want is an advisor to tell them they are making the right investment decision and it is safe and will make good returns,whereas no advisor can do that if you are investing in the stock market

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I don't think that this is fair on most people or intermediaries. No doubt some people go for reassurance but I would imagine that most go to benefit from the expertise and knowledge of the intermediary in order to make decisions suitable to their own specific needs. The value of a good intermediary and a thorough fact find/financila review should not be underestimated.

For the record I am not a professional financial intermediary but I see the value of the services that they provide to many people.