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Pension investment company

Discussion in 'off topic' started by clivem2, Nov 2, 2016.

  1. clivem2

    clivem2 pfm Member

    Does anyone here know about Fisher Investments?

    They have a decent story about pension investments and look to be a genuine company, they actively manage funds. When I research them there are some negative comments on the internet (aren't there always), also their fees are about 1.5%. They are very sales focused too with high sales staff turnover. Of course they promise high returns but my gut tells me to ignore their calls and not get drawn in.

    Does anyone know them and have advice on them?
     
  2. Bob McC

    Bob McC Living the life of Riley

    Cold called?

    Next time give them a 2 word answer.
     
  3. Darth Vader

    Darth Vader From the Dark Side

    Ignore cold calls as they are only out to make money for themselves.

    If you want pensions advice seek out a local financial adviser who you can talk to face-to-face. You'll get the first meeting for free so set up meetings with more than one adviser before making a choice. They must by law spell out their charges and provide a detailed written analysis of your requirements and the reasons why they have made any recommendations.

    Cheers,

    DV
     
  4. clivem2

    clivem2 pfm Member

    Not quite a cold call. I downloaded a report. I have an IFA and plan to stick with him but was interested to know whether anyone has had dealings with Fisher Investments before I totally boot them out.
     
  5. Mr_Sukebe

    Mr_Sukebe pfm Member

    Just a thought. Unless things have changed, pension companies can happily quote on past performance, but are not legally allowed to quote anything but pre-agreed levels on potential future performance. So if a member of their group is saying that they're going to achieve amazing results, they're being a bit naughty.
     
  6. clivem2

    clivem2 pfm Member

    They claim 9% growth averaged over something like the last 10 years. I'm sure that's possible in the future but there must be risk....
     
  7. Mr_Sukebe

    Mr_Sukebe pfm Member

    Yep, quoting past performance is fine, though clearly it's not going to guarantee future performance.
    There isn't an easy answer here. Just do more research and personally I'd be inclined to walk away from anyone too pushy. A good IFA should be able to give you informed thoughts, taking into account past performance, consistency and charges.
     
  8. Darth Vader

    Darth Vader From the Dark Side

    That figure is meaningless as it hasn't been corrected for inflation. For example if you had put £1000 into the bank in 2006 It would have to grow to £1,347.43 in 2016 just to correct for inflation! So no you would not have had a 35% growth over 10 years but 0% in real terms.

    I always like to work in terms of growth above inflation you can then think in terms of todays buying power.

    Cheers,

    DV
     
  9. Colin Barron

    Colin Barron pfm Member

    How would a footsie 100 tracker have performed.
     
  10. Still

    Still he said his naim was ralph

    Charges have a massive effect on the final pension pot e.g. save £250 pm for 40 years, assuming 7% growth p.a. and no fees would result in £621379.


    Hypothetical examples: no Initial charge, but ...

    Annual fee of 0.25% = £579361

    Annual fee of 0.5% = £540507

    Annual fee of 1% = £471310

    Annual fee of 1.5% = £412023


    Initial charge of 1% plus ...

    Annual fee of 0.25% = £ 573567

    Annual fee of 0.5% = £ 535101

    Annual fee of 1% = £ 466597

    Annual fee of 1.5% = £ 407903


    http://www.thisismoney.co.uk/money/...arges-calculator-How-fees-affect-returns.html
     
  11. TheDecameron

    TheDecameron Unicorns fart glitter.

    Is this the 'if I give you my pension pot, will you hide it safely under your bed for me' approach?
     
  12. Cav

    Cav pfm Member

    Anyone who promises high returns are probably to be avoided.

    How much of your pension pot do they suggest you invest? Have they explained your tax liability even if you get no return?
     
  13. Darth Vader

    Darth Vader From the Dark Side

    About 6% pa after charges. So £1000 invested in 2006 would become approximately £1700 today. However taking inflation into account your £1000 in 2006 has become £1262 in 2006 money i.e. £1700 today is only worth £1262 in 2006. So the real return is 26% over 10 years = circa 2.5% pa.

    Cheers,

    DV
     
  14. clivem2

    clivem2 pfm Member

    It's the high returns which rang the first alarm bell. They've not qualified my situation at all. In fact if I were to experience the returns they speak of I'll soon have a tax bill, I'm close to retirement and getting close to the lifetime limit. They also haven't sussed I'll be in drawdown when I retire (soonish) and that will impact my investment strategy. To be fair I've only have a phone call, no meeting hence the lack of qualification (perhaps). The company seems relatively genuine (ie not a scam) but with a lot of pressure on their sales people / high turnover of staff. I don't want to be involved in the game desperate sales people will be tempted to play. I'll play safe and stick with the people I trust.
     
  15. Colin Barron

    Colin Barron pfm Member

    Good plan. Taking risks with your pension close to retirement is a recipe for disaster. The works pension fund i was invloved with shifted from speculative investments when the members were younger to less speculative as the members got older. You can spread the risk by taking your tax free lump sum and putting it into a share isa account, or buy property. I feel much more comfortable in control and its cheaper.
     
  16. charliem

    charliem pfm Member

    In this day and age its hard to make good returns without risk. 9% is OK but you should be able to understand what they will be investing in from their literature.

    I make about 6% from investing in peer to peer lending, 6% from investing in residential property, and 11% investing in commercial property. All are self managed, very easy to control and low risk.

    Could you not just invest the money yourself and manage it yourself?


    Charlie
     
  17. clivem2

    clivem2 pfm Member

    Certainly it's an option to go down the SIPP route for the DC part of my pension pot. I run my own BTL which has decent returns (5%) considering it's also aimed at capital growth. Commercial property caused me trouble a few years back, it seems quite volatile which is hardly surprising.
     
  18. charliem

    charliem pfm Member

    A SIPP is a self invested pension. You still have to decide what to invest in. And a SIPP is controlled by trustees and lawyers - annoying people. Have you thought about a SSAS, a self managed version of the same thing. You invest in whatever you want and run it yourself. They are great if you want to control your investment yourself.

    Charlie
     
  19. Still

    Still he said his naim was ralph

    The most highly motivated and trust-worthy person to look after your money is you!
     

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