Must I use an IFA?

jem16

eenymeenyminymo wrote: »

You need to realise that some of us are complete novices and unfamiliar with the jargon. Speaking for myself, I find this whole area a confusing minefield.

From your comments I would be doubtful that a SIPP would be the best option for you at the moment. It is really a product suited for an experienced investor who wants to be able to invest in areas other than funds. Perhaps this is something that you could consider doing later when you have done a lot of research and learned more about pensions.

It sounds that your best option at the moment is to employ a servicing IFA who will take a more active role in the management of your drawdown and discuss more actively with you what you want.

As to an annuity, some prefer the peace of mind of mind that the annuity brings. You have to be happy with the investment risk otherwise.

eenymeenyminymo

dunstonh wrote: »

I cant see how you get >£2000 on a fund of £110k. If the IFA is taking trail then that is typically 0.5% p.a. Are you perhaps mixing up the annual management charge with commission?

I could be... charges are (according to the agreement) - up to 4% initial and up to 1.5% annual trail.

dunstonh wrote: »

Dont ever get ill then. Your view on doctors after Harold Shipman must be dreadful.

It pays perhaps to be a little wary then! Seriously though, I started this whole process when I was extremely busy and simply didn't have the time to do enough research. I chose the IFA almost by default.

But I am where I am. It doesn't mean that I can't either 'go it alone' or find an IFA who will give me the service I require at a reasonable price.

But, my original question - do I need to use an IFA? Has been answered. I wasn't aware of SIPPS previously. Thank you

dunstonh

I could be... charges are (according to the agreement) - up to 4% initial and up to 1.5% annual trail.

4% initial is the typical maximum. You could have got that cheaper. However, 1.5% annual management charge is the typical norm. You cant get the initial back by moving and the 1.5% wont be improved upon if you DIY. The IFA gets 0.5% out of that. If you DIY, the provider keeps the 0.5%.

If you decide to appoint a new servicing IFA to provide the ongoing servicing, the provider will pay the new IFA the 0.5% and that can be used to give you the servicing without incurring any new charges.

eenymeenyminymo

Jem16, that was very sound advice, thank you. I am in a situation where I simply don't know what I don't know. I thought at first, after looking at tables of the best performing fund managers, I might be able to do it myself. But if that option would be naive as well as costly using a SIPP then I probably would have nothing to gain.
I have found an IFA who would give me the service I require at a lower cost. I haven't fully made up my mind yet though. I will continue to look at the SIPP option and if I subsequently decide to use the services of an IFA then at least I will be better informed.

whiteflag_3

eenymeenyminymo wrote: »

Whiteflag,
I didn't appreciate your rude and agressive private email however.

You have no idea why I thanked Kittie so I don't see why you should throw your toys out of your pram because I thanked her. It didn't mean that I don't appreciate the time you have given up to me.

So why didnt you thank all 3 replys at the same time?

What did Kittie do that you thought needed a thankyou that dh didnt ?

at least you now seem to have the good sense to listen to Jem

btw my pm was neither rude or aggressive and my toys are firmly in the pram.

[Deleted User]

Jem, am I correct in thinking that you are also an IFA?

Dunstonh is and he is to be congratulated for being open it

whiteflag is an IFA but is secretive, why?

whiteflag_3

kittie wrote: »

whiteflag is an IFA but is secretive, why?

Kittie , please read post #4 before you comment further .

oh and you ignored this a few weeks ago
http://forums.moneysavingexpert.com/showthread.html?t=1833607&highlight=

jem16

kittie wrote: »

Jem, am I correct in thinking that you are also an IFA?

No kittie - I am a primary school teacher. The idea of my being an IFA would probably greatly amuse my own adviser.

whiteflag is an IFA but is secretive, why?

He doesn't advertise it in his signature but I found it pretty obvious in his posts. He also plainly has it in his user profile for anyone that wishes to look. I can't say that I have found him secretive - forthright yes, but secretive no.

whiteflag_3

jem16 wrote: »

No kittie - I am a primary school teacher. The idea of my being an IFA would probably greatly amuse my own adviser.



He doesn't advertise it in his signature but I found it pretty obvious in his posts. He also plainly has it in his user profile for anyone that wishes to look. I can't say that I have found him secretive - forthright yes, but secretive no.

Thanks Jem much appreciated

No doubt these forums sometimes remind you of being back at school with your primary pupils, or perhaps they are better behaved!:o

jem16

whiteflag wrote: »

No doubt these forums sometimes remind you of being back at school with your primary pupils, or perhaps they are better behaved!:o

Going by some of your recent posts I have to agree with you - my pupils are better behaved.