Investment fees?

xylophone

You are going to get pinged for fees £70-80 a month.

Sting(ed)?:eek:

I used to hold my ISA with HL and admire their efficiency but not enough to pay several hundred a year in fees.

george4064

jon-w wrote: »

Really?

From HL Website:

Annual Management Charges

Shares, investment trusts, ETFs, gilts & bonds No charge

I was referring to the HL ISA, looks like the conversation was about the Fund & Share account in this instance.

bigadaj

jem16 wrote: »

Any IFA taking 3% initial and 1% annually on a £250k portfolio would be best avoided.

0.5% annually would be more the norm on this size and the OP should be aiming for advice of no more than £2k.

At the moment we have a very inexperienced investor using one of the dearest platforms and their own in house multi manager funds which have fairly high ongoing charges. It's quite likely that an IFA would be able to reduce the platform charge and fund charges which may go quite a way to making up for that 0.5% servicing charge for ongoing advice.

Yes it would be cheaper to DIY with the right platform and fund but at the moment I don't feel the OP is up to that. There is tax to consider plus Bed & ISA and Bed & Pension from April onwards. For someone who was not aware of fees and charges, this might be step too far for the moment.

I've obviously taken top end ball park fees, but is the OPs situation such that we can assume an ifa will move to the opposite end of the spectrum?

Great if an ifa will take the investments on with the basis of a £2k initial charge and around £1k per year servicing, but anecdotal evidence suggests that most ifas will want more than this from their clients.

Everyone wants a good deal, and I'd agree there are savings to be made on the investment charges as well, but no point setting the OP off with an expectation that may well not be able to be met.

dunstonh

Great if an ifa will take the investments on with the basis of a £2k initial charge and around £1k per year servicing, but anecdotal evidence suggests that most ifas will want more than this from their clients.

20,000 advisers out there. You cant rely on anecdotal evidence. For example, I havent charged an initial fee above £1000 in over a year. In most cases nowadays, I charge little or no initial fee. Yes, there will be some damned expensive ones. There will be some cheap ones and there will be those in the middle. Don't assume they are all the same. Just like any type of business.

Vortigern

r_i_c wrote: »

Oh, one thing: all my accounts are 'Income' so they won't go into the float will they - if they do come in - they'll come into my nominated bank account? Is that correct please?

HL will have given you three options for your income producing funds:

1. Hold the income on account (awaiting your further instructions)
2. Re-invest the income automatically
3. Pay it out to your nominated bank account

You should be able to see which option you've chosen (and change it if required) by viewing your account online. You could ring and ask them if you prefer.

r_i_c

Thanks to all. I ought not make any move before seeing an IFA. However, I have a SIPP Income Drawdown account of some £7k doing basically nothing I think. Can I not devote some of this to my cash float which is non-existent at the moment?

As someone with no investment experience I would have thought the mutli-manager accounts - though expensive - were the way to go until I found my feet? Dad was pretty good at figures but even then he does not seem to have strayed from the multi-manager accounts; but then again, he always played his cards close to his chest. He did a lot of buying and selling just before he passed away, and what he did he kept to himself. Possibly he had followed single companies in the past, and decided multi-manager accounts would be a safer bet for mum, who was not versed in investments? All I have tried to do is preserve the investment accounts which remained after inheritance and property tax. In the short term - and without guidance - I don't see that there was much else I could do?

r_i_c

Vortigern wrote: »

HL will have given you three options for your income producing funds:

1. Hold the income on account (awaiting your further instructions)
2. Re-invest the income automatically
3. Pay it out to your nominated bank account

You should be able to see which option you've chosen (and change it if required) by viewing your account online. You could ring and ask them if you prefer.

Thanks, it's number 3. But I need to see those figures coming in to get some idea of what's what. I can switch options later on. I can't just receive dividends to pay fees, I will be looking to meet some living expenses from whatever comes in. It all depends on what does come in of course. Otherwise I better withdraw some of my investment accounts into more high interest current accounts?

Really think I should phone my friendly solicitor tomorrow to see if they do in fact have any IFAs on their books whom they might recommend? The IFA I chose was basically by guess work and because they were relatively nearby.

Archi_Bald

r_i_c wrote: »

Thanks to all. I ought not make any move before seeing an IFA.

Given the history of your posts, you ought not, that is very true.

Please keep reminding yourself not to make any move before seeing an IFA as you could do a lot of harm to yourself / your finances if you did.

Once you have seen an IFA, please don't ignore the IFA.

r_i_c

r_i_c wrote: »

I have a SIPP Income Drawdown account of some £7k doing basically nothing I think. Can I not devote some of this to my cash float which is non-existent at the moment?

Is this practicable please - can I suggest this to HL?

Thanks

bowlhead99

r_i_c wrote: »

However, I have a SIPP Income Drawdown account of some £7k doing basically nothing I think. Can I not devote some of this to my cash float which is non-existent at the moment?

If I understand you correctly from the earlier posts on this thread you seem to have 4 accounts with HL:

Your own SIPP pension;
Your own ISA;
A general "Fund & Share" account which isn't in any kind of tax wrapper;
The residue from a SIPP income drawdown account.

Is this last account part of your own SIPP which you have put into drawdown to take a pension income from? In other words, money that you pay income tax on as you receive?

Or is it simply the dregs left over from a pension account held by your mother or father, but now it has been given to you to spend how you like, and does not have pension status any more but you're still referring to it as a drawdown account because that's what it was when it belonged to them?

If it is just the latter, and it's just money sitting around in a HL account which you acquired and which now belongs to you, then there is no reason why you shouldn't use it to pay fees. However, if it's in a separate account, presumably HL won't know that you want to use it for the fees you're incurring on your main fund account. So, you would have to ask them to transfer the money over before the fees become due; you might as well ask them to close that account so that you have fewer pots of money or assets to manage.