Pension Charges & Fees - help

bigfreddiel

bigadaj wrote: »

So OP, in summary it's bloody expensive and probably not very good!

So in summary from a simple minded member of the unsuspecting public, this is another rip-off on behalf of a financial professional!

Thanks for that confirmation, everyone, just take note and be very, very careful when you meet with anyone of a financial background offering you their services.

This is entirely my point of view. Other points of view are available, and good luck!

fj

dunstonh

So in summary from a simple minded member of the unsuspecting public, this is another rip-off on behalf of a financial professional!

There is no rip off. The charges are not high. Higher than achievable elsewhere but to call those rip off is just silly.

bigadaj

dunstonh wrote: »

There is no rip off. The charges are not high. Higher than achievable elsewhere but to call those rip off is just silly.

I know you're reacting to Freddie's slightly hysterical analysis but rip off seems pretty close to the mark for me.

2% annual charges for a not very bespoke service, adviser taking a cut for passing in his job to an intermediary who appear to be doing a very approximate risk analysis and selling a pre packaged range of funds from a limited pre prepared list.

Pushing £1500 a year and rising, looks expensive to me.

zagfles

bigadaj wrote: »

I know you're reacting to Freddie's slightly hysterical analysis but rip off seems pretty close to the mark for me.

2% annual charges for a not very bespoke service, adviser taking a cut for passing in his job to an intermediary who appear to be doing a very approximate risk analysis and selling a pre packaged range of funds from a limited pre prepared list.

Pushing £1500 a year and rising, looks expensive to me.

Yet DIY options at well under half that price are apparently "expensive" :rotfl:

dunstonh

2% annual charges for a not very bespoke service, adviser taking a cut for passing in his job to an intermediary who appear to be doing a very approximate risk analysis and selling a pre packaged range of funds from a limited pre prepared list.

That assumes the charges are correct. They have been listed and stacked but the fund charges are probably weighted.

As I said, high but not rip off.

Yet DIY options at well under half that price are apparently "expensive"

Advised options can be well under half that price. Try comparing like for like. In this case, the one comparable thing is the platform charge. Your favourite DIY platform is 0.45%. OMW is 0.357%. No point comparing fund charges as they are the same between the two (OMW probably have more superclean but that is no big deal).

wiltshiregirl69

bigadaj wrote: »

I know you're reacting to Freddie's slightly hysterical analysis but rip off seems pretty close to the mark for me.

2% annual charges for a not very bespoke service, adviser taking a cut for passing in his job to an intermediary who appear to be doing a very approximate risk analysis and selling a pre packaged range of funds from a limited pre prepared list.

Pushing £1500 a year and rising, looks expensive to me.

Thanks I'm tending to agree. I just have to work out how to change now. This fund is even more complicated in that it is in a sipp wrapper which includes a commercial office which is let out. The rental income is what is invested in the OMW wrapper pension with these specific charges. The sipp company -IPM - charges £500/year (each for the 3 sipp members so £1500 in total) - for managing the rental income. In total the building - my share being worth £114k and the fund shares add up to around £180k but the charges are high ( in my view ). I'm very tempted to sell my share in the building and transfer the whole lot to a new sipp with an index linked tracker. Buying the office within the sipp worked v well when our company rented it but now we have moved out to new offices the reasons have disappeared and the charges seem v high.

Malthusian

wiltshiregirl69 wrote: »

This fund is even more complicated in that it is in a sipp wrapper which includes a commercial office which is let out.

This was a rather significant detail to leave out of your initial post. Commercial properties within SIPPs involve considerably more work and administration and holding an illiquid asset is a complication that has to be factored into any advice on investment or drawing retirement income - especially as there are other SIPPs who have shares of the property. So naturally it is going to be more expensive than the "standard" solution.

Essentially the adviser charge is 0.86% per annum (add the adviser's fee and Morningstar's together) as Morningstar is doing what traditionally was part of the adviser's job, and something that many of them would still do in-house. This is towards the higher end but I wouldn't call it a rip-off. Besides, the OP has unusual needs in terms of the share of the commercial property within the SIPP.

The platform charge as Dunstonh says is standard and lower than what many DIY investors are happy to pay.

The fund charges are more than I would pay, and suggest a nearly 100% actively managed portfolio which is increasingly old-fashioned. But investing is partly art as well as science and plenty of people on this forum believe that it is possible to generate returns through stock-picking cleverness (whether their own or that of a star manager) and it's not for me to tell them how to spend their money.

I'm very tempted to sell my share in the building and transfer the whole lot to a new sipp with an index linked tracker.

Have you discussed this with the other SIPP members? (Presumably they'd be the ones you were looking to sell your share to.)

zagfles

dunstonh wrote: »

Advised options can be well under half that price.

So why tell the OP the charges are "not high"?

Try comparing like for like. In this case, the one comparable thing is the platform charge. Your favourite DIY platform is 0.45%. OMW is 0.357%.

I pay 0.25% platform fee. You keep ignoring that point. Wonder why?

No point comparing fund charges as they are the same between the two (OMW probably have more superclean but that is no big deal).

I use plenty of so called "superclean". Most of my actively managed funds are well under 0.73%. Passive ones around 0.1%. And zero FA fees, zero "annual management" fees.

dunstonh

I pay 0.25% platform fee. You keep ignoring that point. Wonder why?

I don't care what you pay. I pay less than you and that doesnt matter either.

So why tell the OP the charges are "not high"?

They are higher than what is achievable but they are not rip off as I have said several times now. No need to lie about what I have said.

zagfles

dunstonh wrote: »

So why tell the OP the charges are "not high"?

They are higher than what is achievable but they are not rip off as I have said several times now. No need to lie about what I have said.

Post #13.

dunstonh wrote: »

The charges are not high

No need to lie about what you said

Mind you, in other posts you said they are high. You are even arguing with yourself