Financial Advisor Sacked - how to manage my portfolio?

An investor has sacked his financial advisor and is looking for guidance on managing his portfolio.
He paid £47,000 a year in fees and charges and had over 50 holdings in his advised portfolio!

Work with me

The investor is looking to simplify his portfolio and he has a preference for capital preservation. More money is lost trying to preserve wealth via poor funds or advisor fees than the actual impact of crashes on global equities as prices always recover!

Chapters
00:00 I've sacked my financial advisor - how do I manage my portfolio
00:19 Investor objectives
02:02 Investor portfolio
02:48 Simplification attempt by investor's chronicle
03:50 UK Gilts 5% return and low drawdown
04:26 Ray Dalio All Weather Portfolio
05:54 Man GLG Alpha Select Alternative
06:46 WisdomTree Global Quality Dividend Growth
07:21 Portfolio structure
10:55 Smarter Investing
11:53 Portfolio coaching
12:52 JP Morgan Global Equity Premium Income
14:52 Conclusion

[scotdoc]

Interesting video thanks. I am about six years away from retirement now and use the permanent portfolio which I run myself. I am happy with the returns so far and in 2022, due to the highly diversified nature of the portfolio, it remained in the black by 1.5% when many other portfolios crashed horribly. Much lower drawdown than the all weather portfolio as well.

[jocar-]

Even with such a large investment portfolio the FA fees totalling £47K/yr are scandalous. The 50 odd investment funds in the portfolio are also very questionable.

Similarly, I "sacked" my FA just over ten years ago due to high fees and poor investment returns and started to manage my own investments and have since enjoyed greater returns and lower fees and have been able to take early retirement.

In this example, with an absolutely huge £2.4M sipp, the maximum HL annual platform fees for OEIC funds would be £4K/yr due to tiered fee structure and the fees would be capped at £200/yr maximum if holdings were in investment trusts and/or ETFs.

Some people don't have the time or inclination to manage their own investments, others like the "prestige" of having a financial advisor to impress others. The latter must have more money than sense.

[JamesPaterson-jq]

Interesting update on this MAN GLG fund. I rung Interactive Investor today to buy the fund and seems the managers aren't taking new money at the moment.

[madharry]

I love your coach option Ian. What services do you offer ?

[AdrianValentine]

Great video Ian - as usual! Very similar to me - But am paying Brewin Dolphin nearly 2% per year. They have done well but with a bit of confidence I think I could do a bit better! My ISA's that I control have done a bit better than DB which I put down to what they are allowed to put their client's money into?

[richardh]

Ian, what are your thoughts on using the Portfolio Charts website to assist with defining a structured portfolio?

[davidseymour]

Sorry to go for a second question Ian, but is the Wisom Tree fund you mentioned GGRG? There seem to be 3 flavours: GGRB, GGRG & GGRP. The G one (which I think was your one) is titled USD - but on Hargreaves Lansdown it says the currency is GBX…which is confusing for a simple soul like me! Do you take a currency risk with that one if USD suddenly fell?
Many thanks as ever.

[davidseymour]

I absolutely love your videos Ian - thank you so much for sharing so much of your knowledge.

Sorry if this is a stupid question, but when you say the ‘yield’ of JEGP is 6%, is that just what is paid out as a dividend? i.e. if the price of the ETF goes up by 4.5% over the year, you have then made 10.5% overall? That seems outstanding for a low volatility investment.