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Do people use an Investment Manager

A helpful place to also put any annual reports etc, of your own portfolios
raybarrow
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Do people use an Investment Manager

#520342

Postby raybarrow » August 6th, 2022, 3:42 pm

Hi Folks,

I was wondering if Lemon Fools use Investment Managers. I posted on the Gilts & Bonds board looking to adjust my asset allocation. It's made me look at what I have invested. Basically Shares ISA with Interactive Investor, my choice of HYP shares. Fund ISAs with Fidelity. Cash in various interest accounts. Good company pension and state pension. I also have an historical account with Elson Associates which now only contains two of the Fidelity ISAs. I can't see that it gives me any benefit any longer although I am aware I am moving on in years (73) and wonder if in future it may make life easier if I 'move' more stuff into it, and for Mrs B if I pop my clogs first. Can't decide yet as I'm still reasonably 'with it'

Just curious as to people's thought about it, whilst Daughter-in-Law is shouting at the TV (England v Australia, netball)

Ray.

DrFfybes
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Re: Do people use an Investment Manager

#520349

Postby DrFfybes » August 6th, 2022, 4:09 pm

We paid someone to do a review of our position and make some suggestions.

For us it was worthwhile, as whilst what he suggested was not unusual and quite obvious with hindsight, and something other Fools are doing, we had become focussed on a narrow range of approaches and hadn't really twigged that these were options. Think "HYP or Total return and sell down", "sell non ISA'd assets rather than take Divis from ISAs", and he highlighted a strong UK bias which has cost us over the years.

As for asset allocation, ask 6 Fools and you'll get 8 answers :)

Paul

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Re: Do people use an Investment Manager

#520358

Postby scrumpyjack » August 6th, 2022, 4:40 pm

DrFfybes wrote:We paid someone to do a review of our position and make some suggestions.

For us it was worthwhile, as whilst what he suggested was not unusual and quite obvious with hindsight, and something other Fools are doing, we had become focussed on a narrow range of approaches and hadn't really twigged that these were options. Think "HYP or Total return and sell down", "sell non ISA'd assets rather than take Divis from ISAs", and he highlighted a strong UK bias which has cost us over the years.

As for asset allocation, ask 6 Fools and you'll get 8 answers :)

Paul


and ask 6 investment managers and you'll get 8 answers!

The big problem is finding an adviser who is competent enough to be worth paying for. For the less financially literate it may be worth paying for a one off review/advice.

But it amazes me how many people use a discretionary broker/adviser for an annual percentage fee (which is not even tax deductible). There will then be another layer of fees in whatever they suggest investing in (Investment Trusts or Funds or whatever). The portfolios I have seen which have done this would almost always have been much better off just sticking with the initial investments and doing nothing rather than paying a manager to churn them at a fee pf 0.6% to 2% per annum or whatever.

88V8
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Re: Do people use an Investment Manager

#520372

Postby 88V8 » August 6th, 2022, 5:52 pm

raybarrow wrote:I was wondering if Lemon Fools use Investment Managers.

This one doesn't.

We used to.
My experience was that they provide managed mediocrity.

For me, a bag of income ITs + an HYP + various Fixed Interest, yields better than 5%.
Do appreciate your point about simplicity, I shall need to think about that pre-clog popping.

V8

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Re: Do people use an Investment Manager

#520378

Postby doug2500 » August 6th, 2022, 6:05 pm

I don't and my first instinct for anyone half interested is not to either.

I appreciate your point about leaving Mrs B in the lurch though so my second thought was why not get son or daughter in law involved so they can look after it for Mrs B if needed. Ultimately I'm guessing it may go to them anyway so it would be in their interests to be knowledgeable and reduce costs.

Dod101
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Re: Do people use an Investment Manager

#520398

Postby Dod101 » August 6th, 2022, 9:03 pm

I have a friend who was ‘left in the lurch’ when her husband died although there was/is an IFA in place. She though is less than happy with the results. I answer her questions as best I can but am very diffident about getting involved for all sorts of reasons. But she is a living example of the problems that can occur, sadly.

For my own part I have never used an investment adviser except very fleetingly and it was not a very satisfactory outcome. I did use one very early on re asset allocation but on the whole, I can lose money myself without paying anything so I have just got on with it, There can be expensive lessons on the way but at least I am learning something, and now we never dream of using one.

Dod

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Re: Do people use an Investment Manager

#520408

Postby Lootman » August 6th, 2022, 10:08 pm

Dod101 wrote:For my own part I have never used an investment adviser except very fleetingly and it was not a very satisfactory outcome. I did use one very early on re asset allocation but on the whole, I can lose money myself without paying anything so I have just got on with it, There can be expensive lessons on the way but at least I am learning something, and now we never dream of using one.

I am very happy to pay other people to do things that I either can't do or don't want to do any more. I have happily paid people to mow my lawn or assemble IKEA furniture (a pet hate of mine) even though I can do those things myself.

But I would never pay someone to manage my investments or advise on them. Apart from anything else I worked in that field for 14 years so I had better know what I am doing. It was a while ago now but the principles don't really change over time. And even if I decide that I lack the sharpness any more, I could just buy a Vanguard global tracker or asset allocation fund and sit back.

Besides, investing is fun, it entertains me.

What has caused me to simplify things over the years is that I have less of an appetite for all the clerical and administrative work around investing, including the tax reporting. I was always a front office guy - the back office stuff is boring and frustrating, and I outsource that to the extent that I can.

Dod101
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Re: Do people use an Investment Manager

#520414

Postby Dod101 » August 6th, 2022, 10:39 pm

Lootman wrote:
Dod101 wrote:For my own part I have never used an investment adviser except very fleetingly and it was not a very satisfactory outcome. I did use one very early on re asset allocation but on the whole, I can lose money myself without paying anything so I have just got on with it, There can be expensive lessons on the way but at least I am learning something, and now we never dream of using one.

I am very happy to pay other people to do things that I either can't do or don't want to do any more. I have happily paid people to mow my lawn or assemble IKEA furniture (a pet hate of mine) even though I can do those things myself.

But I would never pay someone to manage my investments or advise on them. Apart from anything else I worked in that field for 14 years so I had better know what I am doing. It was a while ago now but the principles don't really change over time. And even if I decide that I lack the sharpness any more, I could just buy a Vanguard global tracker or asset allocation fund and sit back.

Besides, investing is fun, it entertains me.

What has caused me to simplify things over the years is that I have less of an appetite for all the clerical and administrative work around investing, including the tax reporting. I was always a front office guy - the back office stuff is boring and frustrating, and I outsource that to the extent that I can.


Yes. I can understand all that. When I was better able to do the chores like mow the lawn etc, I was happy for someone else to do it. I now do most of these myself. It asserts my independence. OTOH I enjoy investing and deciding, in any case I will never subcontract these tasks as long as I am able to. Then my Attorney can take over because by then I will be past it. As far as sharpness is concerned, I suspect that I will not be the best judge of that, but so far………

Dod

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Re: Do people use an Investment Manager

#520444

Postby raybarrow » August 7th, 2022, 9:02 am

Hi Folks,

Thanks for the comments. More or less as expected, we are Lemon Fools(and Motley Fools back in the day) because we are interested in what we do, but we can't stopped the aging process. When people asked me "When is the best time to start a pension/saving/investing etc?", the answer more often than not was "The best time is now."
So I should take my own advice and now review/simplify the shares ISAs (whilst keeping diversified), consolidate the cash ISAs and interest accounts (being aware of the £85K FSCS limit). Then review my asset allocation whilst I am still 'with it'. The simplicity of the Vanguard Lifestyle Funds are interesting me at the moment (Different asset allocations depending on your age/requirements). Get rid of the Investment Manager that in reality doesn't tell me anything I don't already know or couldn't find out.
Mrs B and I have similar portfolios which she is happy for me to manage. She knows that money in a tin box under the bed whilst convenient, is not a great idea. With a simpler portfolio that more or less runs itself she would be OK. She is intelligent, qualified electrical engineer, it's just that investing does not interest her as it does me. If there was a Brownie Badge for investing things would be different for Mrs B aka Brown Owl.

I've told the kids about investing so I think our children would be ok. I find writing that strange as our son finished university in debt and our daughter finished in profitand is still running her life at a profit. Don't know quite what happened there but hey - maybe it was something I said.

Cheers,
Ray.


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