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Pension Fund Reinvesting - Financial Adviser


New Landy new life
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Hi all

 

I left my last employment in June last year after 20 years there and have a Defined Contribution Umbrella Pension Fund with A Forbes that I have just left as is until I decide where to invest it.

 

After 2 months probation with my new employer I am on an A Forbes Retirement Provident Fund.

 

I also have another external Provident fund with Liberty that I took 15 years ago to supplement my previous pension.

 

I have had over the last 6 months advice from an A Forbes Adviser, my Liberty Adviser and another External  Broker who have each given me quotes and advice where to invest all my pension/provident  funds but as they all earn commission from this I tend to view their advice with a pinch of salt.

 

Would it be a good idea to hire an external adviser that is not linked to any commission structure from the Investment companies  so they have no vested interest other than an hourly advice fee to look through the three quotes and give an unbiased opinion.

 

I have a purely technical mind and go completely blank when these guys start explaining the investment options and fee structures etc. 

 

Some advice appreciated. 

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I am still quite young and in no position to provide advice myself, but with my limited knowledge of these things I would suggest you get advice from someone who does not earn commision from it.

 

I have also received advice from a few advisers in the past and never had a good feeling about it from all of them.

 

What I am doing currently is diversifying my investments which I believe minimises my risk. I might not be getting the best possible returns, but I feel that I am safeguarded to a certain extent and not limited to the T's & C's that come with pension funds.

 

It might also be worth spending as much time as you can doing your own research. With how the internet has evolved there is endless free advice all over the web. Obviously common sense will also need to be applied as there are also scams. Stick to what is legit!

Edited by Wimmas
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Generally any FA that you will go to will have a commission structure built into the advice that they provide.  

 

Unfortunately there will always be a bit of bias in the majority of the FAs that you engage with, either being that they "like" a certain type of product provider / product vs because they an agent for that product provider.  There are some benefits of course in dealing with a reputable FA, who can assist you with rebalancing your portfolio over time (or as there are changes within the different funds that they recommened).  

 

But I understand thatyou might be sceptic about the objectivity that they come to you with their proposals, luckily in RSA we have a lot more transparency with regards to the fees that they are earning from the advice they giving, and I would rather go to someone with more limited range of products they know better, than someone promising they know all the funds and options.

 

Of course it is always possible to engage with the FA and offer them a flat fee for the advice, not sure how many of them would be willing to do it, but it is always an option 

 

Asking for free advice or being worried that the FA is going to be bias to a certain offering, is that not the same as going to the doctor asking for free medical advice (who might also be more inclined to prescribe a certain brand of medication over another)

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Personally, I've had good experiences with the Investec iSelect Preservation products and the Sanlam Glacier Preservation product. Fees are very low and they've performed well for what they are.

 

That's my opinion, not advice ;)

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