How to Achieve Your ISA and Pension Goals
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, SIPPS, Investing, Performance, Price, Protection on 25th December, 2011.
Tags: bull market, institutional investors, isaco, liquid millionaire, market health, market indexes, nasdaq composite, russell indexes, s & p 600, stock market, stock market summary.
How to Achieve Your ISA and Pension Goals
Do you have a Stocks and Shares ISA and pension portfolio valued in excess of £100,000? If yes, you may find value in this report.
Today I’m going to share with you how to achieve your ISA and pension goals.
If your objective is long-term capital growth, your ultimate objective should be to outperform the stock market. The rules are simple:
1. Beating the stock market gives you a greater chance of arriving at your financial goals on time.
2. Underperforming the stock market gives you a greater chance of not arriving at your financial goals on time.
Beating the stock market is extremely difficult to achieve and so unless you have the time talent and energy to do it all yourself, you are probably going to need some expert help.
When you look for help, the three things to focus on when choosing your adviser are:
1) Capital growth aims
2) Client fee structure
3) Client care
1) Capital growth aims
Traditional advisers aim for 7% annual growth because this is roughly the rate of return the stock market has returned per year over the last century. However statistics state that unfortunately 80-90% of advisers underperform the market which means most advisers will achieve less than a 7% annual return.
Remember the rule: Underperforming the stock market gives you a greater chance of not arriving at your financial goals on time.
This means your job is to seek help from an adviser that has historically beaten the stock market. However, even if you do find a company with record of beating the stock market, you have to remember there is no guarantee they will continue to perform well in the future.
Try to find a company that aims for 12-15% annual growth. A company with a strong track record of outperforming the stock market will set capital growth aims higher for their clients.
2) Client fee structure
One of the most common ways an advisor will bill you is an annual fee charged each year as a percentage of your account value. This figure is normally 2%.This annual recurring payment structure is not cost effective for consumers and does not provide value.
Instead look for a company who charge a one off fee rather than recurring annual fees. Make sure that once the fee is paid you pay nothing more. The difference between being charged an annual fee versus a one off fee could save you tens of thousands of pounds in unnecessary charges.
3) Client Care
Some investors unfortunately develop fractious relationships with their financial advisers due to broken promises and infrequent communication. This results in a feeling of indifference. Trust levels are often poor. The fatal mistake many advisers make is ignoring the importance of building and strengthening relationships between themselves and their clients.
Find a company that focuses on forging strong, long-term relationships. Get help from a company where they give you dedicated personal assistance. Ideally you want to be assigned your very own investment consultant where it is permitted to communicate with your investment consultant in a variety of ways and at the frequency you prefer.
Can ISACO help?
ISACO was established in 2001 by Stephen and Paul Sutherland. Today we specialise in providing a premium investment guidance service for ISA and pension investors with portfolios in excess of £100,000.
Our mission is to help investors achieve better performance over the long-term, better protection in falling markets and at a better price.
Can ISACO help you?
1) Do you have a Stocks and Shares ISA and pension portfolio valued in excess of £100,000?
2) Are you looking for expert investment guidance in helping you achieve your ISA and pension goals?
3) Do you have a 12-15% annual return target over the next five to ten years?
4) Would you like to see a significant saving in adviser fees?
5) Are you looking to partner with a firm that focuses on forging close long-term relationships with its clients?
If you answered yes, ISACO can probably help.
Better Performance: 22.7% per year versus the FTSE 100’s 9.3% per year*
Better Protection: Our aim is to protect your portfolio in falling markets
Better Price: We can help you save 45% or more on adviser fees**
*(Nov 2008 – Nov 2011)
**Based on guidance over a 5 year period starting with a £100,000 portfolio
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If you are excited about what you’ve just seen, you may be interested in learning about ISACO’s Shadow Investing Service.
If you are looking for a full investment guidance service that shares with you what I’m personally invested in with my ISA account so that you can do the same, twinned with around the clock dedicated personal assistance from your own ISACO investment consultant and 24/7 direct contact to ISACO’s managing director, click here. You can call 0800 170 7750 if you prefer.
