James Coney  

How can advisers attract DIY investors?

James Coney

James Coney

Retention rates at most advice companies are in the high 90 per cents. The biggest source of customer loss is death.

Some of these businesses will be good, some bad, but the fact hardly anyone bothers to leave is a reflection of how difficult it is persuade an investor to move from one platform or advice business to another.

You can see from the IMA fund figures the declining amount of new money that is going into equities from intermediaries versus direct investments.

In reality this means that in the future if you want new clients, businesses will have to target people before they find Vanguard. But with current price models, convincing them that this is worth the cost is going to be a challenge.

It’s time to start thinking about how we solve this problem.

Jisas need reforming

There was a lot of jubilation around the 10th anniversary of the Junior Isa – a phoney celebration if ever there was one.

Certainly Junior Isas are a far better product than their predecessor, the child trust fund. The 1.5 per cent fee cap on these now looks like a relic of a bygone age.

But there is a still a problem with Jisas: about two-thirds of the money is in cash.

And now with inflation coming, we need to talk about this much more. Given you can’t touch the money in a Jisa for as long as 18 years, surely this ranks as one of the worst financial decisions you can make?

Pension contributions

If ever you want to know how little normal people understand about pensions then listen to the comments from members of public sector schemes (or the Universities Superannuation Scheme) when faced with changes.

'If I’m asked to contribute more, then I just won’t save into one,' they always say.

Please do.

James Coney is money editor of the Times and Sunday Times

@jimconey