Cost of IFA to invest £50k

Thrugelmir

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?

Self manage your investments. Try x-o .

http://www.x-o.co.uk/

TheTracker

dunstonh wrote: »

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

Ah I didn't realise such handcuffs were put in place. Were it me I'd tell the IFA I had 100k not 300k. Then I'd create an account with a competing provider and invest 200k in the same products. I wouldn't ever put money in the handcuffed accounts, but I may take it out. Except you'd say that's a mistake because you would have advised differently if I had 300k not 100k. Plus I had to sign a document saying I wouldn't do this. Because you know better daddy.

If I have a windfall mid way through year 1 you're saying I can't invest that with the provider without me going through an IFA, even though all I want to do is scale up my investments?

That's all hypothetical. I'm too busy visiting my homeopath and chiropractor to keep IFA appointments.

dunstonh

Were it me I'd tell the IFA I had 100k not 300k.

That would likely result in a different portfolio being built (mine are different at 300k for 100k).

Then I'd create an account with a competing provider and invest 200k in the same products.

Except you'd say that's a mistake because you would have advised differently if I had 300k not 100k. Plus I had to sign a document saying I wouldn't do this. Because you know better daddy.

What you do is up to you but there could be limitations as mentioned. Personally, I find this scenario strange and unusual as I usually go fixed fee on initial and it avoids this mindset.

If I have a windfall mid way through year 1 you're saying I can't invest that with the provider without me going through an IFA, even though all I want to do is scale up my investments?

You can do what you like. However, you wouldnt be able to use the IFA arranged platform. The DIY platforms are focused on providing DIY service. The intermediary platforms are focused on dealing with intermediaries. Those platforms that try their hand at both tend to be a bit of a fudge and not very good (e.g. Cofunds and Fidelity. Their technology is miles behind).

ColdIron

TheTracker wrote: »

That's all hypothetical. I'm too busy visiting my homeopath and chiropractor to keep IFA appointments.

Rather than adding money to your portfolio, have you considered taking more and more out to see if it produces better and better returns?

Pippajane1010

Thank you all who responded to me, much appreciated. I haven't any other investments. I had already signed up but asked for reduced fees and they said they would drop them but still considering removing from under management and managing myself, I will check out the links you provided. Thank you