IFA - Am I being ripped off?

robbieroy

It is a while since I posted on the forum but here goes....

In Dec 2010 I signed up with an IFA to manage my early retirement pension lump sum and also the lump sum from my voluntary severance package from work.
The deal was, that from the investments I would draw an annual sum in two tranches, one in May and one in Nov.
During 2011, the May tranche did not appear, so I contacted the IFA and arranged a meeting and it was agrred that both tranches would be paid that November.
Now May 2012 has come and gone and I have not received my May 2012 tranche from the investments.
What am I paying the IFA concerned? Well, the majority of the money is tied up in a Standard Life Wrap which carries a Calculated annual charge of 2.09%. As far as I can make out, the IFA will glean the following annual %s of the Investment:
0.75% of my S & S ISA (approx £18K invested)
0.75% on my personal portfolio (approx ££65K invested)

Anyone think I am being ripped off by this IFA?

If so is there anything I can do about it?

Thanks in anticipation
RR

dunstonh

What am I paying the IFA concerned?

Don't know what you service agreement with the IFA is. However, one thing it will not be is to pay you the income. That is the role of the provider. The IFA is there to provide ongoing advice and deal with any issues that arise. Make sure the cash float is ready for the withdrawal or the withdrawals are from the right investments etc.

Anyone think I am being ripped off by this IFA?

No. Your portfolio is not that big. So, you shouldnt expect costings that someone with a larger portfolio would get. At just £83,000 it generates just £622.50 gross to the IFA. That is good for about one rebalance and review a year if you look at typical costs.

I'm no fan of Std Life Wrap but having a 6 monthly payment date should be electronic and even their platform should be able to handle that. If the payment is end of May, then the bank holidays may have had an influence on that delay.

robbieroy

Thanks for your reply dunstonh
RR