UK pension

counciltaxbill

dunstonh wrote: »

The amount is expensive. However, how you describe it is a fee. Not commission. Fee is cheaper than commission in 90% of the cases. Even when the amount is the same.

Ok sure, it's a de jure fee but a de facto commission.

dunstonh wrote: »

Maybe his firm only deals with large value clients and prices out smaller ones on purpose (very common). Or it is a prestige firm/city location or has a specific business model that may not be suited for you.

Yeah maybe. I was recommended him by two friends who don't earn massively more than me, but they might have funds I don't know about behind them. My impression was he was a bit curt with some of my questions and not too interested in listening to me. I won't be using him.

counciltaxbill

dunstonh wrote: »

IFAs cannot collect commission.
Until you know what investment strategy you are going to use, how you are going to manage and rebalance it going forward and what research and due diligence you are are going to do, you shouldnt really think about solutions. Think how to invest first, then think who to use and what product.

You are right. This much I know: I don't want to trade. I have done this in the past but have rode my luck. I don't have any special knowledge over and above anyone else. As well as not being able to pick equities I'm not sure I can pick geographical areas or sectors. I see bonds as too defensive and a way to bleed wealth at the moment.

So my provisional plan is maybe 30% in some sort of property fund then split the rest between UK equity funds and global funds, with maybe 10% in small caps. I want to seek low fees for these funds and the question is trackers or managed.

dunstonh

Ok sure, it's a de jure fee but a de facto commission.

Not even close to commission. Its a fee. Big difference. (on your contribution and timescale, probably many tens of thousands of pounds difference)

My impression was he was a bit curt with some of my questions and not too interested in listening to me. I won't be using him.

Don't blame you. It does suggest he isnt interested. One of the problems of the retail distribution review is that it has pushed IFAs further up the wealth chain than they already were. I had someone approach me earlier in the year who had £250k and they had been turned away by two IFA firms as they didnt have enough (although one said they would do it but wouldnt be cost effective). I turn away more than I ever used to now as well.

So my provisional plan is maybe 30% in some sort of property fund then split the rest between UK equity funds and global funds, with maybe 10% in small caps. I want to seek low fees for these funds and the question is trackers or managed.

In a clean pricing world, there isnt as much cost difference between managed and trackers. Trackers are not going to get subsidised from managed funds and most platforms will allow cross investment universes in same plan. So, you can pick and choose the best of both. e.g. tracker from mature markets and managed in immature markets or where management can add value.

counciltaxbill

grey_gym_sock wrote: »

other cheap options include personal pensions via cavendish online -

The Aviva AMC is really low through Cavendish, 0.45 or 0.4 depending upon if I consolidate my scattered pensions or not.

If one goes through Cavendish to get an Aviva personal pension, does one keep dealing with Cavendish as a proxy or is it a one time deal?

dunstonh

Cavendish would remain the agent on the policy but its not a servicing arrangement but transactional. i.e. one off.