Deferred IFA

xylophone

OP, you and the IFAs seem to be making a meal out of this.

From all the information in your previous posts https://forums.moneysavingexpert.com/discussion/5244566

it appears that you are the outright owner of a property, that you are currently single, that you are now (at age 60)in receipt of a TPS pension of around £6000 a year (and presumably received a lump sum of £20,000 ), had a small AVC (now transferred to your HL SIPP?), some thousands in cash within a Santander 123 and a portfolio of funds within an HL Vantage ISA and a Vantage Account.

You have taken the PCLS from the SIPP.

You expect to receive your state pension in 2022 when you reach 66.

You have obtained a state pension statement which shows that owing to the Contracted Out Deduction, your starting amount is less than a full new state pension; you intend to contact DWP about making voluntary Class 3 contributions up to your state pension age to address this.

At the moment, you are not in employment and may not consider employment so that you need to explore funding your lifestyle from your TPS pension/capital/investment income/SIPP until state pension age and then beyond.

It should not be beyond the capacity of a competent IFA to advise on the above - otherwise you work out your own budget on the basis that you know your expenses and calculate what what you need to draw from capital on top of your investment income?

You may wish to look at IHT planning - presumably you have covered this (and making a will) with your solicitor, particularly in view of the difficulties you experienced with your mother's estate?

gadgetmind

orwen wrote: »

"2% on £250k is damned expensive"

Thanks. The property alone comes to more than that!

The IFA is wanting 2% of the value of your house? I haven't heard of that before but I'm not wearing my surprised face.

jem16

gadgetmind wrote: »

The IFA is wanting 2% of the value of your house? I haven't heard of that before but I'm not wearing my surprised face.

Maybe, maybe not. I believe the IFA asked about the property value but that may have been to get a full picture for a financial plan rather than to include it in the fee.

gadgetmind

I'm struggling to see what the OP actually needs an IFA for. This looks like simple cash flow forecasting, which doesn't seem like their role TBH.

xylophone

I'm struggling to see what the OP actually needs an IFA for. This looks like simple cash flow forecasting, which doesn't seem like their role TBH.

The OP's previous posts indicated a certain lack of grasp of financial matters (including the fact that he was due a deferred DB pension at age 60) - as far as one could gather, his late father advised and dealt with finances for the family as a whole and after his father's death, the OP was not employed but cared full time for his elderly mother, living with her in the family home which came to him after her death together with the bulk of her investments.

He already had a SIPP ( arranged by his father) but his mother's death left him having to deal with his inheritance. He needed to decide whether his mother's investments were the most suitable for him etc as well as sorting out his cash flow.

However, I would have thought that matters were clearer now.......

Al.

orwen wrote: »

Hi,

Been here before but was derailed due to unforeseen circumstances.

Am intending to visit a local IFA this month, is there a check list for everything I need to take with me please?

My pension begins next week but may take a while to come on stream. I have a SIPP and investments, so will be taking all that paperwork with me. A rough list of outgoing expenses will be drawn up. Is there anything else I'd need please?

Many thanks

I sometimes send this to a client before we meet for the first time. It's only a very loose framework, nothing more than a nudge intended to stimulate thinking.

<<Where are you now?

Your current financial position
Assessing your assets and liabilities
Understanding your cash flow
Building and Maintaining your cash reserve for unanticipated events (rainy day fund)
Consolidating your loans
Evaluating your mortgage needs
Applying tax efficiency to your financial position
How are you protected?

Your current protection planning

Having the right amount and type of cover
Protecting your ability to meet savings/education objectives
Protecting your income
Understanding your existing cover and employment benefits
Providing adequate health and nursing care
What plans do you have for your retirement?

Retirement planning

Your retirement plan
Projecting the impact of earlier or later retirement
Buying a retirement home
Understanding your retirement benefits
What are your investment plans?

Investment planning

Management of your existing capital
Are you saving with a specific objective in mind, such as:
Buying a house or second home
Starting a business
Building a balanced investment portfolio
Providing for your children
How are your tax plans?

Tax planning

Using tax-efficient investments
How are your plans for the future?

Estate planning

Consider preserving your family’s wealth by:
Wills
Reducing estate duty
Effects of capital gains tax
Trust strategies>>

orwen

In reply to bigadaj

Many thanks. You can't question the questions on a questionnaire. I told both IFAs that I do not want to take more risks than I am currently taking by investing in HL. The last risk questionnaire was vague in terms of semiotics. How do you define 'high risk', 'medium risk', 'low risk'? These are all relative concepts, abstracted they mean everything or nothing, they also alter in context I feel.

jem16

orwen wrote: »

You can't question the questions on a questionnaire.

Well you can question if but after you've completed it. The questionnaire is a starting point to gauge your risk profile. Once completed you can then discuss it with the IFA.

Usually filling it in with gut answers works best.

orwen

LXdaddy wrote: »

Our chosen IFA quoted a fixed price (based on about 6 hours of charge) for the fact finding (which was a second meeting of about 2 hours) and initial preparation of our plan, then if we want him to implement the proposals 1% of the funds under management. Annual reviews from then would be 0.5% of the funds under management. We do have an option of using an hours based fee too. And of course we can take the approach of not having him implement the proposals and doing it ourselves.

Thanks, fixed prices seem like a better way forward, the last IFA seems anyway to be too expensive at 2% (or maybe 1.5% if I can squeeze it , he said - no promises). The first IFA seemed very keen on what risks I would be willing to take and unimpressed when I told him I didn't want to take risks. All I need to know is that the investments are sound, as in, I am not in the wrong investment programme. Obviously I am aware values fluctuate.

orwen

jem16 wrote: »

Well you can question if but after you've completed it. The questionnaire is a starting point to gauge your risk profile. Once completed you can then discuss it with the IFA.

Usually filling it in with gut answers works best.

Thanks, that's exactly what I did with IFA number 1 and the online questionnaire crashed on completion :-o There was no follow up from the advisor, which was promised but never materialised.