How much is too much?

atush

TheTracker wrote: »

Is it cheap compared with what other IFAs would charge? The IFAs above, who circle this forum likes sharks around a seal, have attested it does appear so.

But your real question is probably is it value? Is it worth £400+ to get access to £6k+? Can you DIY for less money and less hassle? That's the question. And probably one that only you can answer.

I am no IFA, and dont currenlty use one. But your statement is slanderous, and ill informed. No one here it trolling for business, but are helping others.

And if they do troll for business, i m the first one to jump on them.

So dial back ont he insults?

dunstonh

But we don't know it's gone into drawdown, that's the problem here the OP has provided little information and everyone is speculating. We don't know whether there was a transfer or not or whether it is in drawdown.

I have read the first post as the OP saying that he wants to put an existing uncrystallised pension into drawdown and take 25% lump sum (but no income). Remember that taking the 25% is effectively putting it into drawdown with zero income.

It could be that the £400 has been more than recouped by the arrangements that the ifa has organised, could be drawdown or could be an annuity.

Good point. If the OP is on say a 1% p.a. charging contract and the IFA puts them into a 0.4% p.a. charging contract then there will be a breakeven point.

TH1878

TheTracker wrote: »

Is it cheap compared with what other IFAs would charge? The IFAs above, who circle this forum likes sharks around a seal, have attested it does appear so.

But your real question is probably is it value? Is it worth £400+ to get access to £6k+? Can you DIY for less money and less hassle? That's the question. And probably one that only you can answer.

I have never sought nor gained business from this forum, I'm here to try and help people out with the knowledge and experience I have. I've been around long enough to know that Dunstonh is the same but let's ask the real question here:

What's your motivation, TheTracker?

Because you're having a go at people who are genuinely trying to help which suggests you have an ulterior motive?

wotsthat

jem16 wrote: »

No I don't think it is too much for an IFA's fee - in fact it is good value for advice.

Someone wants to access their tax free lump sum - what advice is needed?

Thank heavens for sipps.

jem16

wotsthat wrote: »

Someone wants to access their tax free lump sum - what advice is needed?

How to access the lump sum whilst leaving the rest untouched? Basically there could be any number of reasons that advice was needed.

TheTracker

TH1878 wrote: »

I have never sought nor gained business from this forum, I'm here to try and help people out with the knowledge and experience I have. I've been around long enough to know that Dunstonh is the same but let's ask the real question here:

What's your motivation, TheTracker?

Because you're having a go at people who are genuinely trying to help which suggests you have an ulterior motive?

Oh there is nothing ulterior about my motive, it is quite public and plain.

Firstly, I think the IFA brigade here is well above average in terms of intelligence and certainly politeness. I do believe they are sincere and just trying to help, much like a financial chiropractor. I don't for a second think they are scouting for business, I suspect that would be frowned upon by the forum owners. But it would be useful if each of them were to disclaim they've never received any business through a contact made on this forum. How about it?

My beef lies lies in the sharp intake of breath that responds to almost any request wellllll you could do it yourself, but DIY is risky, you should really let a professional handle it. The OP is minded to know that most of the people responding to a request for professional service costs are in the business of selling such services to the public. Ask a bunch of plumbers how much to fix a faucet? Now ask your mates.

So we see threads like this one which without much supporting information asks for TFLS withdrawal from a modest pot. There are a couple of posts above from the non IFAs that say look it's pretty simple you can do it yourself here's a pointer. Do I really want to know about that an IFAs cost factors in his PI? Of course s/he does.

But my general beef with the IFA industry is two fold: generally opaque pricing; poor basic understanding of the lack of relative merits of active management (the clue is in my handle).

So there is my non-ulterior motive which you can see in previous posts. If one finds that insulting or slanderous then one has terribly thin skin.

But IFAs are terribly entertaining, I get a good few chuckles reading their posts here, this one included. Thanks!

dunstonh

My beef lies lies in the sharp intake of breath that responds to almost any request wellllll you could do it yourself, but DIY is risky, you should really let a professional handle it.

There are no such posts by the advisers here. All are quite balanced on the DIY side.

So we see threads like this one which without much supporting information asks for TFLS withdrawal from a modest pot. There are a couple of posts above from the non IFAs that say look it's pretty simple you can do it yourself here's a pointer.

There are also posts from advisers saying they can DIY. Indeed, many of the responses from advisers on this and other threads helps people DIY.

Do I really want to know about that an IFAs cost factors in his PI?

Understanding why is better than remaining ignorant. So, when asking if a fee is reasonable and thinking it is not, it helps to know why the fee is at that level.

But my general beef with the IFA industry is two fold: generally opaque pricing; poor basic understanding of the lack of relative merits of active management (the clue is in my handle).

Your bias is something that an IFA should not have. They should remain open minded. The OP has been given a clear fee for the work as well. So, transparency seems fine here.

jem16

TheTracker wrote: »

There are a couple of posts above from the non IFAs that say look it's pretty simple you can do it yourself here's a pointer.

That's the problem - it "looks" pretty simple but it's more than likely it actually isn't as presumably the OP would have done that if it had been. Why approach an IFA otherwise?

The OP hasn't been back since shortly after I posted and asked the question as to why they didn't DIY. Until we get further information we can only speculate but there is a fair chance that their current provider couldn't do what they wished.

However you must be looking at different posts where you see IFAs simply saying you should really let a professional handle it as I certainly haven't seen it. I usually find posts from the IFA side quite balanced unlike some from the DIY side.

wotsthat

jem16 wrote: »

How to access the lump sum whilst leaving the rest untouched? Basically there could be any number of reasons that advice was needed.

Is it difficult to tell someone how to access the lump sum whilst leaving the rest untouched?

How many hours of advice does £400 buy?

jem16

wotsthat wrote: »

Is it difficult to tell someone how to access the lump sum whilst leaving the rest untouched?

If the current pension provider will not allow taking the 25% tax-free lump sum and not touching the rest, then the pension would have to be transferred to a provider that will allow it. If the rest is to remain invested perhaps advice was also required as to what funds to use.

Whilst that transfer will be perfectly simple for some to do, for others it may not be.