Cost of IFA to invest £50k

clarky_cat

Its an interesting question, I didn't really want to throw all my eggs into one basket so if I used all the £50k on property, and struggled renting it out, I wouldn't have much to fall back on. I am quite confident though any flat I buy in the area I'm looking at would rent out pretty quickly ( it has good transport links and is a nice upcoming area). I haven't looked at buy to let mortgages yet, that is next on my list.

Mistermeaner

Each to their own but 50k id go it alone, cheap platform and some basic large range funds eg. Vanguard

Ive asked lots of stupid questions on here, had lots of good answers and if you spent an hour reading them youll feel much more confident.

Have a go, take your time, learn and benefits will pay you back years into the future (look at it as investment in yourself)

Pippajane1010

Hi, I am posting in here as I can't find the 'new thread' button on here and my question is related. I a number of different pensions which come to £50k at the moment and being advised to put it in a SIPP. The charges are as follows: 3% initial charge approx £1k and annual charge of 1.90%pa (0.75% pm) Is this reasonable? Is it negotiable?

Mistermeaner

Pippajane1010 wrote: »

Hi, I am posting in here as I can't find the 'new thread' button on here and my question is related. I a number of different pensions which come to £50k at the moment and being advised to put it in a SIPP. The charges are as follows: 3% initial charge approx £1k and annual charge of 1.90%pa (0.75% pm) Is this reasonable? Is it negotiable?

Rip off.

Use google to shop around

Fyi new thread is blue button top left of page

dunstonh

Pippajane1010 wrote: »

Hi, I am posting in here as I can't find the 'new thread' button on here and my question is related. I a number of different pensions which come to £50k at the moment and being advised to put it in a SIPP. The charges are as follows: 3% initial charge approx £1k and annual charge of 1.90%pa (0.75% pm) Is this reasonable? Is it negotiable?

Why would you want a SIPP with just £50k? Do you have other assets on platform (such as ISA)?


The initial charge is not unreasonable. Its right in the ballpark expected. The annual charge though is high unless you are factoring in servicing into that. In which case, its not bad. (it could be a little cheaper but equally it could be more). Although whether you need servicing with £50k is a different matter.

clarky_cat

I got another quote which is 2.5% followed by 0.75% pa.

One question, whats to stop someone investing say £30k initially, so the 2.5% fee is lower, then topping it up it up later?

dunstonh

clarky_cat wrote: »

I got another quote which is 2.5% followed by 0.75% pa.

One question, whats to stop someone investing say £30k initially, so the 2.5% fee is lower, then topping it up it up later?

Top ups carry the same fee. So, 10x£10k is the same as 1x£100k (actually with some pricing models, 10x£10k could work out more as many advisers teir the charges)

clarky_cat

Thanks, that makes sense

TheTracker

dunstonh wrote: »

Top ups carry the same fee. So, 10x£10k is the same as 1x£100k (actually with some pricing models, 10x£10k could work out more as many advisers teir the charges)

How would they know?

dunstonh

TheTracker wrote: »

How would they know?

Because the provider wont accept them without the intermediary putting it in place.