Your questions answered Vol 2 - IM Private Clients
Discussion
JulianPH said:
So you realised it would be high on impossible to answer, but asked anyway? Cheers mate!!! 
You'll think of something 
Gallons Per Mile said:
Are you expecting IML to outperform the individual portfolios because it's taking all the best bits and putting them in one pot?
I did wonder if IML will render all other IM products obsolete... but the problem remains, I think, that no relevant performance figures can be known because the figures will be unique to each investor.One question re withdrawal options: Can they be selected to take into account income/dividend and/or CG tax thresholds? For example, 'Take out as much as possible each FY up to but not exceeding my CGT threshold'? (Obviously IM won't know what other investments people hold, but they could do it assuming there are none). Knowing how much one can sell without getting pinged for the various taxes is always a problem.
Simpo Two said:
Mr Whippy said:
Simpo Two said:
Meantime, I see my prediction for inflation at 10% by the end of the year is unfortunately coming true 
In fact I may revise it to 12%.
Isn’t it somewhat irrelevant depending on intentions? In fact I may revise it to 12%.Ie, if you’re filling your home heating oil tank, inflation on kerosene is the issue.
And we know the price of kerosene could be half the price in 12 months time.
If you’re long term saving for retirement with cash earned today, leading growth equities have lost about 20%, or two years worth of high inflation, so a whole boat load cheaper.
Goods will likely fall in price when oil prices fall.
Energy will likely fall in price too.
Food likely to fall in price.
So yes, “inflation” could be 10%, but will it be 10% for you?
What might it be a year later? Negative? Low single digit, offsetting the high?
All in, it’s not bad until it’s bad.
For now we could all defer a great deal of our exposure to it.
And we could take advantage of huge negative inflation on high quality stocks.
As for being able to hoover up cheap stocks, if you have the cash to do it, yes, But if most of your cash is already in stocks that have taken a hit you don't want to sell do you - you sit tight and wait to recover the losses.
You can half fill it.
You can defer purchases. You can cancel purchases.
What you cost average into stocks you can defer, or just take advantage of falling prices.
There is a big chance that half of these daft prices disappear as market forces resolve the supply side.
Demand side will already be waning given what we’re seeing.
I get your gist but it’s quite a negative outlook.
No one is sneaking up to you and mugging 10% of your wealth.
What wealth you ‘give away’ to inflation in the next 12 months is quite discretionary.
Yes in the longer term inflation will bite, but it’s not like it’s not always been there is it?
It’ll maybe just be a bit more this year.
As for stocks. They’re just getting back to 2019/2020 prices for now.
Unless you bulk bought in late 20 or early 21, and instead cost averaged in, and have been buying in for 5 years, you’re still going to be well up on average buy-in price.
Stocks will have to lose a good chunk more to make sensible investors worse off in a meaningful way.
superlightr said:
nice. but where is the little rubber duck or toy boat?
Hi Julian and team. Thanks for your earlier reply.
How does it work in regards to wanting to;
wanting to retire next year and looking for a drawdown at end of each year of say 4%
Having 3.5 years of cash over and above investment capital in case of bad sequencing/poor performance to replace/prop up that 4% (plus some extra assets to sell if really needed ie 911 & downsize)
Hoping to have the investments until I die say in 35/39 years but happy with a diminishing balance.
How does IM tailor the product to try and meet my aims?
I presume that as only a small % is used/needed then the majority will be invested within higher risk longer term products from IM within the IML holdings?
its the time line and adjustments I guess im unclear over is the "risk" level adjusted per person based upon what they ask for or done automatically? eg Im happy with a high risk as I have other stuff to sell.
Hi James, this is a route preferred by many once they are aware of it and the general position would be to place 3.5 year's drawings in IM Optimum Defensive - or cash - to set your income to one side, and leave the rest invested in IML (which would now be at a balanced level if you selected income) with any gains (dividends, bond yields and capital growth) reinvested for growth as before.Hi Julian and team. Thanks for your earlier reply.
How does it work in regards to wanting to;
wanting to retire next year and looking for a drawdown at end of each year of say 4%
Having 3.5 years of cash over and above investment capital in case of bad sequencing/poor performance to replace/prop up that 4% (plus some extra assets to sell if really needed ie 911 & downsize)
Hoping to have the investments until I die say in 35/39 years but happy with a diminishing balance.
How does IM tailor the product to try and meet my aims?
I presume that as only a small % is used/needed then the majority will be invested within higher risk longer term products from IM within the IML holdings?
its the time line and adjustments I guess im unclear over is the "risk" level adjusted per person based upon what they ask for or done automatically? eg Im happy with a high risk as I have other stuff to sell.
Alternatively you can use any of our other portfolios, should you now wish to take more control yourself over things.
So nothing changes other than you can continue with the IML approach for all but your first 3.5 years of withdrawals, or you can move to our full range of portfolios if you want to go back to selecting the investments yourself.
This is something Nik can sit down and go over, discussing the options and mapping the different solutions. The only thing he can't do is adviser you on which one to take, but he can fully explain things so you are comfortable with that decision.
GR_TVR said:
Was that taken in your swimming pool? 
Slight spelling mistake with "decision" in case you miss it! I'll take the full fat "Ferrari next year" option, please
Very good mate! Slight spelling mistake with "decision" in case you miss it! I'll take the full fat "Ferrari next year" option, please
Without looking I bet I spelt it double 's', I do that. I am quite dyslexic and rely on spellchecker, that software doesn't have it!
Cheers, will amend now!
PS Why did they make dyslexic such a difficult word to spell...
Gallons Per Mile said:
Yep, I'm getting there, thanks!
Another couple of questions have spawned from this:
Will IML be buying individual stocks not found in other existing portfolios, or if you see an opportunity will the stock be added IMO and the weighted up in IML?
Are you expecting IML to outperform the individual portfolios because it's taking all the best bits and putting them in one pot?
Cheers
Hi CraigAnother couple of questions have spawned from this:
Will IML be buying individual stocks not found in other existing portfolios, or if you see an opportunity will the stock be added IMO and the weighted up in IML?
Are you expecting IML to outperform the individual portfolios because it's taking all the best bits and putting them in one pot?
Cheers
First point, no, but that is not to say we won't! To get on our stock list there is a huge amount of research to be done, so we will only be selecting from these.
Having said that, if there was a stock we wanted to include within IML or any of the PH portfolios then we would add this for inclusion anywhere we felt fit. We do this regularly anyway.
Second point, there will always be one approach that out performs any other. PHE has done this for a long time (although has suffered of late, particularly with Netflix) and over shorter periods this can be a completely different portfolio - from something as specialist as PRH to something as mundane as IM Index 100.
With IML we intend to ensure we beat the markets by a considerable margin, but cannot guarantee we will beat a portfolio that is packed with the runaway winners!
markiii said:
IML sounds intriguing. So are you effectively saying pick IML if you trust you guys to make better decisions than ourselves. And oick your individual funds if we think we can do better?
In a nushell Mark, yes!When using IM you are already picking from portfolios we manage for you anyway, but with IML we further manage how you are exposed to each of the underlying elements within these.
So if you are confident in doing so and like picking your own portfolios IML is probably not for you, if you don't, or are not quite as confident when push comes to shove, then IML could be just what you need!
JulianPH said:
Hi Craig
First point, no, but that is not to say we won't! To get on our stock list there is a huge amount of research to be done, so we will only be selecting from these.
Having said that, if there was a stock we wanted to include within IML or any of the PH portfolios then we would add this for inclusion anywhere we felt fit. We do this regularly anyway.
Second point, there will always be one approach that out performs any other. PHE has done this for a long time (although has suffered of late, particularly with Netflix) and over shorter periods this can be a completely different portfolio - from something as specialist as PRH to something as mundane as IM Index 100.
With IML we intend to ensure we beat the markets by a considerable margin, but cannot guarantee we will beat a portfolio that is packed with the runaway winners!
Thanks Julian, I think I "get it" now. It only took a bit of questioning and for me to tank up on Ukrainian beer this evening for it all to make a bit more sense. First point, no, but that is not to say we won't! To get on our stock list there is a huge amount of research to be done, so we will only be selecting from these.
Having said that, if there was a stock we wanted to include within IML or any of the PH portfolios then we would add this for inclusion anywhere we felt fit. We do this regularly anyway.
Second point, there will always be one approach that out performs any other. PHE has done this for a long time (although has suffered of late, particularly with Netflix) and over shorter periods this can be a completely different portfolio - from something as specialist as PRH to something as mundane as IM Index 100.
With IML we intend to ensure we beat the markets by a considerable margin, but cannot guarantee we will beat a portfolio that is packed with the runaway winners!
I think my parents may be interested in this sort of investing style so I'll run it through them once they've bought their new house and sold the old one. I just wanted to understand fully what is on offer first.
Right, tea break then more Ukrainian beer. One must do their bit for the war effort, you know.
JulianPH said:
markiii said:
IML sounds intriguing. So are you effectively saying pick IML if you trust you guys to make better decisions than ourselves. And oick your individual funds if we think we can do better?
In a nushell Mark, yes!When using IM you are already picking from portfolios we manage for you anyway, but with IML we further manage how you are exposed to each of the underlying elements within these.
So if you are confident in doing so and like picking your own portfolios IML is probably not for you, if you don't, or are not quite as confident when push comes to shove, then IML could be just what you need!
....and there you are, back ...Brilliant!...making it all a bit more Human. Informing us again in Layman's terms. Mostly
Simpo Two said:
I did wonder if IML will render all other IM products obsolete... but the problem remains, I think, that no relevant performance figures can be known because the figures will be unique to each investor.
One question re withdrawal options: Can they be selected to take into account income/dividend and/or CG tax thresholds? For example, 'Take out as much as possible each FY up to but not exceeding my CGT threshold'? (Obviously IM won't know what other investments people hold, but they could do it assuming there are none). Knowing how much one can sell without getting pinged for the various taxes is always a problem.
It certainly renders nothing obsolete unless no one wants to pick their own selection of portfolios!One question re withdrawal options: Can they be selected to take into account income/dividend and/or CG tax thresholds? For example, 'Take out as much as possible each FY up to but not exceeding my CGT threshold'? (Obviously IM won't know what other investments people hold, but they could do it assuming there are none). Knowing how much one can sell without getting pinged for the various taxes is always a problem.
I think the bottom line is that we all know what a global tracker looks like and does, and we all know that there are certain companies listed within that will do much better than markets as a whole.
In using IM Index you are putting your trust in global markets, with IM Optimum you are putting your trust is us weighing clobal markets and with the PH portfolios you are putting your turst in out stock selection abilities.
So you are already doing all of these things and the only question is do you want to call the levels of exposure to each, or would you like us to manage that for you?
Regarding you questions on withdrawals, you can set these where you choose and change them where you like. There is no mechinism for us automatically paying out based on your personal tax threshholds though. Such a thing is not possible anywhere as no one persons circumstances will be the same as another's.
Cheers!
Gallons Per Mile said:
Thanks Julian, I think I "get it" now. It only took a bit of questioning and for me to tank up on Ukrainian beer this evening for it all to make a bit more sense.
I think my parents may be interested in this sort of investing style so I'll run it through them once they've bought their new house and sold the old one. I just wanted to understand fully what is on offer first.
Right, tea break then more Ukrainian beer. One must do their bit for the war effort, you know.
Goodo! And well done for so selflessly supporting the Ukrainian beer industry in its time of need!I think my parents may be interested in this sort of investing style so I'll run it through them once they've bought their new house and sold the old one. I just wanted to understand fully what is on offer first.
Right, tea break then more Ukrainian beer. One must do their bit for the war effort, you know.
If we could only get Jasey to join in with you there could be a very compelling PHR style investment case here!!!
JulianPH said:
Goodo! And well done for so selflessly supporting the Ukrainian beer industry in its time of need!
If we could only get Jasey to join in with you there could be a very compelling PHR style investment case here!!!
I usually need no prompting to get involved with beer.If we could only get Jasey to join in with you there could be a very compelling PHR style investment case here!!!
Potentially making money while enjoying a beer sounds like a good plan
Sign me up.
Jasey_ said:
I usually need no prompting to get involved with beer.
Potentially making money while enjoying a beer sounds like a good plan
Sign me up.
Aha! You beat me to it Potentially making money while enjoying a beer sounds like a good plan
Sign me up.
See you later on in that case. Though we'll have to convene at yours; I've only just tidied up from last night's dinner/beer/trampoline antics with next door! At one point we had four children and two adults on the trampoline at the same time. One of the adults may have been me...IML sounds good to me, always seem to be attracted to your latest portfolio offerings like a magpie and just choose an arbitrary level of how to spread my funds across, which is getting thinner and thinner as instead of 3 funds I've now got the same pot spread cross 5 or 6. I'll certainly be looking at moving my pots over.
Bubbas Grill said:
Welcome back Julian. Your own presence, direct communication, perspective and vision for what IM are doing currently and for the future are mightily important and I personally really appreciate it. In my rare post a few days back I asked a question which invariably was going to illicit a TOOTP response from some. What can you do? I'm allowed same as all.
....and there you are, back ...Brilliant!...making it all a bit more Human. Informing us again in Layman's terms. Mostly
Hi Bubbas, and thank you for your incredibly kind words!....and there you are, back ...Brilliant!...making it all a bit more Human. Informing us again in Layman's terms. Mostly
Looking back to your post on Tuesday you make a very valid point. We try to be incredibly clear and direct in everything we do and say, but sometimes it is had to gauge what is required.
In times of turmoil it is both right and expected that people will have questions and want more information. Whilst I have been through much worse than this in the past, on many occasions, and know how the patterns work, others do not and so are far less comfortable.
It is rather like turbulence on a plane. When you are experienced and aware of its cause, effects, duration and its ultimate passing - with things inevitably returning back to normal - it is far easier to deal with. When you are not it can be frightening and certainly very worrying and traumatic.
Our solution to this has been to share information that we normally would just keep internal as part of our day to day work. The aim was/is to not only let people know what is happening, but also why.
The further consideration in doing this was simply to show that whether you wanted to read, absorb and understand the mechanics behind things or not, you are at the very least aware that we most certainly are doing so on your behalf.
It certainly wasn't meant as a call for action or engagement, and most definitely not us placing anything in your hands to deal with!
The problem is a simple one of human nature. When markets are falling the newspapers print big headlines about millions being wiped off our pensions and people want to know why. When markets recover and continue to rise the papers never print a word about this and people are happily not interested in what we are doing about it!!!
Thank you also for asking after my health and happiness. Health wise, I am making a complete recovery and am virtually there, bar continued rest and recuperation this year.
I have greatly surprised the doctors and my consultant, but was never going to let a fatal disease stand in my way and ruin my plans. I'm made of stronger stuff than that and plus, Adam would only go and outperform me and with Nik being so busy no one would be there to look after Coops. We couldn't be having that!
Happiness levels have also just been turned up a notch too, with one of the last previous style AM V8 Vantage S, 7 speed, Pentland Green with Sahara Tan main leather/alcantara, every extra on the list ticked and only 3,600 miles on the clock with full AMSH. It arrives next week!!!
It is all GR_TVR's fault, but at least you know I need to add a few positive percentage points to our investments next week to make the man maths work!
Cheers
Julian
Jasey_ said:
How are you managing the advice aspect of the rules you are governed by ?
Could be a complete minefield if things go south for some investors using IML.
Morning mate! No advice is involved, is is purely a discretionary investment mandate.Could be a complete minefield if things go south for some investors using IML.
In the strage world of the FCA, advice is when you make a personal recommendation on a course of action. Providing a managed investment with a mandate such as IML's is not giving advice, it is offering a solution for someone to take or leave.
If we were to say that this was absolutely the best option for you to take, then this would be advice.
I say "strange world of the FCA" when it comes to what is and isn't advice, as they have now dictated that as a pension provider we must steer people toward the most suitable option for them at retirement, but they will not class this as being advice.
Had we done this previously we would have been heavily fined for giving financial advice.
Go figure!!!
Jasey_ said:
JulianPH said:
Goodo! And well done for so selflessly supporting the Ukrainian beer industry in its time of need!
If we could only get Jasey to join in with you there could be a very compelling PHR style investment case here!!!
I usually need no prompting to get involved with beer.If we could only get Jasey to join in with you there could be a very compelling PHR style investment case here!!!
Potentially making money while enjoying a beer sounds like a good plan
Sign me up.
Gallons Per Mile said:
Aha! You beat me to it See you later on in that case. Though we'll have to convene at yours; I've only just tidied up from last night's dinner/beer/trampoline antics with next door! At one point we had four children and two adults on the trampoline at the same time. One of the adults may have been me...
I hope livestock wasn't involved again this time guys... See you later on in that case. Though we'll have to convene at yours; I've only just tidied up from last night's dinner/beer/trampoline antics with next door! At one point we had four children and two adults on the trampoline at the same time. One of the adults may have been me...
Stevil said:
IML sounds good to me, always seem to be attracted to your latest portfolio offerings like a magpie and just choose an arbitrary level of how to spread my funds across, which is getting thinner and thinner as instead of 3 funds I've now got the same pot spread cross 5 or 6. I'll certainly be looking at moving my pots over.
Cheers mateLove the magpie reference! That is what it is designed to do, keep you in some core holdings whilst adding the right shiny things for your circumsatance to the mix ,to ensure we consistently embarrass any competition!
JulianPH said:
Bubbas Grill said:
Welcome back Julian. Your own presence, direct communication, perspective and vision for what IM are doing currently and for the future are mightily important and I personally really appreciate it. In my rare post a few days back I asked a question which invariably was going to illicit a TOOTP response from some. What can you do? I'm allowed same as all.
....and there you are, back ...Brilliant!...making it all a bit more Human. Informing us again in Layman's terms. Mostly
Happiness levels have also just been turned up a notch too, with one of the last previous style AM V8 Vantage S, 7 speed, Pentland Green with Sahara Tan main leather/alcantara, every extra on the list ticked and only 3,600 miles on the clock with full AMSH. It arrives next week!!!....and there you are, back ...Brilliant!...making it all a bit more Human. Informing us again in Layman's terms. Mostly
Cheers
Julian
I would also like to congratulate you on finally choosing a car with the same badge and body colour as mine, albeit four cylinders short
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