is it possible

notanewuser

for an IFA to get a new personal pension set up within 7 working days?

dunstonh

yes. Especially at this time of year when you get last minute limited company contributions.

notanewuser

dunstonh wrote: »

yes. Especially at this time of year when you get last minute limited company contributions.

Sprung!!! :rotfl::rotfl:

Now if only mine would answer my e-mail!!!

notanewuser

Hmmmmm. Spoken with IFA. Basically this will cost me £300 a year retainer plus 3% of the monthly contributions (another £360 per year). £660 a year seems quite a lot for basic pension advice and set up to me.

Especially when I can set it up myself via Cavemdish for £35 with no other costs (just a 0.55% management charge).

Any thoughts?

grey_gym_sock

either ask the IFA to only do (and only charge for) setting up the pension, not servicing, too - which at least some IFAs will do - or DIY. servicing is probably uneconomic until you've built up a larger pension pot.

dunstonh

which at least some IFAs will do

All IFAs should have a transactional only and servicing only option. However, do be aware that the investments recommended would likely be different.

Hmmmmm. Spoken with IFA. Basically this will cost me £300 a year retainer plus 3% of the monthly contributions (another £360 per year). £660 a year seems quite a lot for basic pension advice and set up to me.

If there is no existing pension/investment business with them then its a fair price.

notanewuser

I'm really torn. The IFA is an old friend. On one hand I trust him to look out for me, but on the other, it's a big wedge of money.

mania112

3% a month for the foreseeable future is too much, are you sure that's not just for the first year?

dunstonh

RDR doesnt allow open ended deductions like 3% p.a. forever more. It has to have a defined end date. Most do it over 12 months. Indeed, increasingly common is just four instalments as any more than four instalments requires a category A” consumer credit licence. Pre RDR, no adviser would likely hold a category A” CCL. They cost over £1000.

notanewuser

Have read through the charging doc he sent 5 times and can't see anything that suggests it isn't open ended. He has a minimum charge of £500 which he didn't mention on the phone either.

If I needed investment advice for large sums then I may be prepared to pay such amounts. As it is I'm tempted by the HL SIPP. With 25-30 years to go before retirement I'm already in a decent position pension wise so can afford a bit of risk.

notanewuser

Any thoughts/warnings/words of advice?