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Arranging S&S ISa via an IFA - Fees?
Comments
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I can see that. I'm curious why you would not invest this year's allowance first though to avoid losing it and then take the steps for moving existing money? I guess the only reason I can see is if you didn't have enough for this year/next year but the OP doesn't seem to be saying that.
Existing money is an easy hit for the IFA?
Agree that it would seem odd to lose this years allowance if funds are available.
Curious why all cash ISAs would be taken in first round unless OP has lost all hope in current rates on offer."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Existing money is an easy hit for the IFA?
cash is cash. Source is irrelevant. Existing investments can cause more issues and require a higher level of compliance.'m curious why you would not invest this year's allowance first though to avoid losing it and then take the steps for moving existing money?
Me too. Using new makes more sense to do first than using existing.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
cash is cash. Source is irrelevant. Existing investments can cause more issues and require a higher level of compliance.
A bird in the hand and all that.
2% on c.£40K."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Sorry for all the multi quotes, but I wanted to reply to most of the posts that have been made.
I really appreciate all the comments as they give me something to think about.gadgetmind wrote: »The 2% sounds OK if you don't want to do your own research, but those ongoing fees are going to limit your returns if it's really 0.5+0.35%+0.6%=1.45%pa.
Market returns are predicted to be about 5% over the next few years (yes, such predictions mean little, but ...) this means that about one quarter of this will be going into someone else's pocket rather than yours.
Don't get me wrong, this doesn't mean that you shouldn't go ahead, but does mean that you need to keep on researching how to get fees lower, which may mean you need to do some reading.
That is the reason I was asking if the fees seemed reasonable as I have no idea what the average fees would be, apart from reading a spreadsheet on Platform fees that was linked to on this forum. The fees on there were much lower, but possibly for people who are DIY.
Any suggestions on how to get the fees lower, is it possible to negotiate with the IFA?
I appreciate that I have a lot of reading to do and I am hoping that this time next year I will have a much better understanding of the whole S&S ISA thing. However being a complete novice, I feel more comfortable with a professional choosing a fund and platform rather than choosing something myself as I might as well stick a pin in a list.You do have to consider the costs of getting wrong if you DIY badly. Not everyone is cut out to DIY and not everyone has the interest to DIY.
The only difference in cost between the adviser and DIY on the annual is the 0.50%.
That is my concern with my total lack of knowledge, that I might get it badly wrong. At the moment I am certainly not cut out for DIY. I am hoping I will have an interest to DIY, but certainly not at the moment. I shall carry on reading here and see if I can understand it better for future.
Dunstonh, what is your opinion of the fees?grizzly1911 wrote: »Existing money is an easy hit for the IFA?
Agree that it would seem odd to lose this years allowance if funds are available.
Curious why all cash ISAs would be taken in first round unless OP has lost all hope in current rates on offer.
These are not all our cash ISAs, just the ones that have matured recently or are due to.
I might ask again whether to use this year's allowance.
We still have the bulk of our money in instant access accounts. That is the reason for taking this step towards S&S ISAs as everything is in instant access at the moment and I felt we had too much in instant access that could be invested elsewhere.0 -
Dunstonh, what is your opinion of the fees?
They are in the ballpark. For a large amount you would expect the 2% to taper off or be capped. For a small amount you would actually expect a higher fee.Any suggestions on how to get the fees lower, is it possible to negotiate with the IFA?
What actually is the amount being invested as we need to have the 2% placed in context? If it is say £11520 then 2% is very low. Indeed, one wonders why the IFA is even offering business on that basis.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi
It is a total of £44000 split equally between two of us for cash ISAs that have matured or are due to mature soon.0 -
Oh dear, with all the budget announcements I wondering if this is a good or bad time to be doing this.0
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Oh dear, with all the budget announcements I wondering if this is a good or bad time to be doing this.
Absolutely no impact on investing.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
What do you think of the fees in relation to the amount being invested?0
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What do you think of the fees in relation to the amount being invested?
In the right ballpark. Indeed, for servicing, you are increasingly seeing higher than 0.50% p.a. given on figures under £100k. So, in that respect its not bad.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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