COMMISSION TO IFAs

lisyloo

My assumption when answering johns question was that this was a current company scheme (he said employer contributes).

If you have a previous company pension you can often transfer these to you own name as a personal pension (may depend on type of scheme but you can do this with some GPPs).
Once it is your own, then you can transfer it to any advsor you like.
There are sometime clawback clauses in place however.

lisyloo

The first words of my last post were
****my*** followed by ****assumption****

Looks like the first five letters got replace with
"I disagree".

joed912

Julian (& anyone else) your comments on the following would be appreciated:

I have a Standard Life endowment to which I contribute £120 per month.

Looking through my records I found out that Std Life pay my ex-IFA £3 per month renewal commission = £36 per year. There is no mention of any other form of commission (ie. based on percentage of fund value.)

The £36 will cover my annual fee to IM.

However, when I key in these figures into the IM commission calculator I get some unexpected results...

Year 1 - £36 commission (as expected)
Year 2 - £113 commission (???? - what's going on here?)
....

I expected Year 2 to be: ( £36 + 7% ) + £36 = £74

Am I working this out correctly?

Thanks in advance,
Joe

payless

unless the plan is low start - ie premiums increase yearly, then the renewal will stay at £3pm.

Unless you have various regular plans, this IM deal may not suit, it really makes it mark in the fund based rcommission  found on most actively manged UT/ equity Isas and some bonds

and even then that assumes you are happy to lose the advice service, and of course that IM will forward the renewals to you (not saying they won't, but its hell of an admin job)

joed912

Payless,

Then the IM commission calculator is wrong!!!

Can Julian explain why the calculator gives such misleading figures?

Joe

joed912

Another bit of information that should be taken on board...

I have £3k in a bond with Liverpool Victoria.

According to the IM calculator this will give a commission in the first year of £15 (based on 0.5% commission).

However I received a letter from Liverpool Victoria informing me that "NO commissions are payable on this policy"

Another misleading calculation on the IM website!!!

[I have joined IM - but it doesn't appear to be as good a deal as I expected. Looks like my Std Life endowment will just cover my annual subscription. I have one more card to play, so to speak: I have £10k in a Fidelity PEP/ISA which according to IM calculator gives 0.5% commission. Will keep you posted as to what occurs...]

payless

I have just put in that I have 1 policy at £1pm for a 22yr old ( this would accrue 2.5p pm renewal = £7.50 over 25 yrs)
but they tell me

Currently, your savings will be reduced by £1,757.00 to pay commission charges. If you join Intelligent Money we will send you cheques totalling £635.00 You can either spend this money as you wish, or (and we recommend this) put this cash back into your savings so you don't end up losing £1,757.00
Note:
These commission calculations are based upon both inital and renewal commissions using the figures in this table.

payless

similiar silly figures for £100pm
appartently even though my £100pm will cost me total £30,000 over 25yrs

Currently, your savings will be reduced by £175,762.00 to pay commission charges

can only assume their systems are playing up

System

I went to the site and put in the £126 per month I pay on endowment, I changed the retirement age to 55 since its closer to when my mortgage ends and it came up with an answer of over £16,200 in commission cheques would be paid to me, it says to click on each investment type for more detail, so I clicked on endowment and got this error message, perhaps this is the problem?

Variable MONTHLYSAVING is undefined
then a whole load of technical stuff

payless

if they are promoting a service/ calculation , they should ensure their systems are correct
especially given the exposure they have had in the press.

Wonder if peopel have signed up , not knowing the figures are incorrect.

As I have said before, hope their systems to collect/distribute correctly renewals work