Reviewing an 'old' pension fund

EdInvestor

Ed, you are so anti financial services it is unbelievable.

Not so. I just like getting value for money.

nearlyrich

Peartree wrote:

Thank you. I'll start with a letter to Norwich Union.

If you want a quick answerI can vouch for the fact that they have a very friendly helpline, see their website for the number, I had to call last week for some info on my pension plan and I get wgat I needed really quickly.;)

dunstonh

EdInvestor wrote:

Not so. I just like getting value for money.

So why are you so negative to a contract that can be cheaper than HL but has to be done through an IFA?

EdInvestor

So why are you so negative to a contract that can be cheaper than HL but has to be done through an IFA?

HL offers a SIPP with all the investment options including a wide array of unit trusts. Choice of advice or execution only basis at lower cost. No PR drawdown.

The insurers offer a PP with a smaller selection of quality external funds. Advice or E/O but no discount for E/O. No PR drawdown below 100k.

Selestia offers an array of quality unit trusts but no additional investment options.Advice only, cost will depend on individual advisor. Offers PR drawdown below 100k.


IMHO the operative word is "can be". First you have to find a low cost IFA and since these make up only about 10% of total IFAs (not of total advisors) we are talking needle in haystack for most people.

dunstonh

HL is just one execution only firm and makes up less than 10% of IFAs. Doesnt stop you promoting them.

The insurers offer a PP with a smaller selection of quality external funds. Advice or E/O but no discount for E/O. No PR drawdown below 100k.

Execution only can lead to discount. Remember that its the advising/execution only firm that gives the discount. Not the provider.

EdInvestor

It may be the case that some IFAs will provide execution-only discounts for some products.But who is to know?

Most investors find the whole charges area baffling and are unable to tell if they are getting a good deal or not.

With HL and other discount brokers with low transparent charges you know what you are getting at the start.

dunstonh

It may be the case that some IFAs will provide execution-only discounts for some products.But who is to know?

Most IFAs will give discounts on execution only. The unknown bit is how much the discount is.

With HL and other discount brokers with low transparent charges you know what you are getting at the start.

They have a website that tells you so that gives a headstart. It doesnt mean that its the best though. It is going to be important to keep those SIPP charges under review post regulation. With SIPP providers already pulling out due to increased costs under regulation, it will be interested to see how many will keep their current level of charges in place.