Going for Flexi Access Drawdown - Questions for IFA's
GSP
Posts: 887 Forumite
Hi,
I have decided to transfer out our pot of £780k into flexi access drawdown. I am 55 mid July.
We are seeing two IFA's on Tuesday, and had a conversation with another so could be another meeting arranged shortly.
All have been through their fees which are fairly similar, though will have to weigh up where their transfer fee is higher, but annual fee is lower, so what is best over the longer term.
It will also come down to who we feel more comfortable with. Funny as the second and third IFA are aware of each other. The second one who has a flat servicing fee said that the first one, whose annual fee is a percentage may take extra risks because the rewards are more for him. I said that in the conversation with the third one who laughed as he does a flat fee also, but can't remember what he said to justify. After learning what the first one was charging for the transfer (0.75%), the second one said he would alter his charge from 1.5% to 1% because of the size of the pot.
All the meetings will be free and sure they will run through certain things again. Only yesterday
I received my official CETV papers and numbers which are valid for 3 months, so can show its all factual. All have said there would be no up front charge for the report.
Are there any burning questions I should ask the IFA's which in your mind may determine who best to choose. It could be I haven't selected well so don't want to choose the best from a bad bunch.
Thank you.
I have decided to transfer out our pot of £780k into flexi access drawdown. I am 55 mid July.
We are seeing two IFA's on Tuesday, and had a conversation with another so could be another meeting arranged shortly.
All have been through their fees which are fairly similar, though will have to weigh up where their transfer fee is higher, but annual fee is lower, so what is best over the longer term.
It will also come down to who we feel more comfortable with. Funny as the second and third IFA are aware of each other. The second one who has a flat servicing fee said that the first one, whose annual fee is a percentage may take extra risks because the rewards are more for him. I said that in the conversation with the third one who laughed as he does a flat fee also, but can't remember what he said to justify. After learning what the first one was charging for the transfer (0.75%), the second one said he would alter his charge from 1.5% to 1% because of the size of the pot.
All the meetings will be free and sure they will run through certain things again. Only yesterday
I received my official CETV papers and numbers which are valid for 3 months, so can show its all factual. All have said there would be no up front charge for the report.
Are there any burning questions I should ask the IFA's which in your mind may determine who best to choose. It could be I haven't selected well so don't want to choose the best from a bad bunch.
Thank you.
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Comments
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Just to add, was going to ask:
IFA costs. Can these increase at any time and could I move to another IFA if not happy.
Noticed in my db pension I will get hit with s SPD state pension deduction when I reach that age which is £2k a year. By transferring out to another scheme, would I lose that penalty.
If annuity rates suddenly go through the roof in time for whatever reason, could I still purchase one with money left in the pot?0 -
You don't have a pot, you have a transfer value from a DB scheme, they are not the same thing.
You will not qualify for any more state pension by transferring from a scheme that was contracted out of SERPS/S2P.
You can purchase an annuity from funds in flexi access drawdown at any time.0 -
Thanks Coryls.
Yes wrong name there, re transfer value.
Where my pension is held now, in a breakdown of figures it mentions an SPD figure of £1.9k annually, a reduction that is. If reading correctly appears if I leave my pension where it is, there is an agreement when the state pension kicks in, my numbers will be reduced annually by that amount, another reason in a growing list to transfer out it seems.0 -
Yes thanks they know its a transfer value. Not sure why I used the word pot above.0
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Obviously I want the money put into the funds to do the best it can.
While choosing one of the three IFA's, is there something they should say/behaviour that might differentiate one from the other.
For the experts on here, what would the key things you would want to hear from them?
Thank you.0 -
Obviously I want the money put into the funds to do the best it can.
While choosing one of the three IFA's, is there something they should say/behaviour that might differentiate one from the other.
For the experts on here, what would the key things you would want to hear from them?
Thank you.
Great question that I to seek support of from the many on this site that have sound knowledge - thanks in anticipation0 -
You could ask for a breakdown of their fees. This will show you how accurately they price and you can see which you think shows better value.
Let us know how it goes!0
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