Low cost IFA for DB to SIPP pension transfer?

dunstonh

atush wrote: »

If they are gagging for it, they probably want to sell you dodgy non regulated investments.

It worries me as it is not the sort of transaction that genuine IFAs are "gagging" for.

Lots of the scams are of course "gagging" for it.

wjr4

Erc1046 wrote: »

No, atush, they want a chunk of my lump sum. Why wouldn't they? Wouldn't you want £5000 for a few hours work (accepting there are some charges to pay out of it)? I will choose the SIPP provider and the investments. No non-regulated dodgy deals.

I can't stand when people say 'for a few hours work'. If only you knew how much work goes into these things. Not including the months/years it takes to pass the exams.

Erc1046

Hi dunstonh, when you suggested the high cost was "passive blocking" I think you were mistaken. I've encountered that in other areas but these guys were enthusiastic if not actually gagging!
Thanks to all for your comments (although a connection to that elusive low-cost, genuine IFA was what I was looking for!). I wish you all well.

bigadaj

rjw4 wrote: »

I can't stand when people say 'for a few hours work'. If only you knew how much work goes into these things. Not including the months/years it takes to pass the exams.

Well it is a few hours work.

Anyone professionally qualified will have spent on average say 7 years in education and professional training for chArtered status in most areas, so a few months or years isn't enough really.

And yes there is cpd or equivalent elsewhere as well.

soulsaver

I have completed a 'near no brainer' CETV DB (Aviva) scheme to SIPP (Interactive). £340k - Qualified IFA fee £2.5k - several quotes in that region.

see here... https://forums.moneysavingexpert.com/discussion/5554142 see post #13

IFA details provided on request - no connection other than this transfer.

PS I did the chasing round ... and it need it with Interactive.

Malthusian

The "few hours' work" stuff is a red herring. Digging a hole and filling it in again a few times is a few hours' work, which most unskilled labourers would happily do for you for, say, £30 cash in hand. The idea that labour input is the only determinant of value was thoroughly debunked with the collapse of Marxist economics. At the cost of a few hundred million human corpses.

What determines the price of something is a) supply and demand but also b) its value to the buyer. If you are that confident that transferring out of a DB scheme will improve your retirement fund by X hundred thousand then paying a one-off sum of Y thousand pounds, if that is the going market rate, should be no problem.

dunstonh

Hi dunstonh, when you suggested the high cost was "passive blocking" I think you were mistaken. I've encountered that in other areas but these guys were enthusiastic if not actually gagging!

If you set a fee at £500-£1500 it is because you can reasonably turn it around in a relatively short period, it is low risk (or relatively low risk) and it is within your comfort zone as a business.

If you set a fee at £5000 or above, is it either because it takes longer, is higher risk or you don't really want to do it and are passive blocking. If you do get someone willing to pay £5000 then that is one transaction that could take you 10 other transactions to do to meet the same income. So, whilst £5k+ fee may be a passive blocker, if someone is willing, then you will do it as that is the fee you were happy to accept the business.

atush

dunstonh wrote: »

It worries me as it is not the sort of transaction that genuine IFAs are "gagging" for.

Lots of the scams are of course "gagging" for it.

Exactly my point

CSMR

Erc1046 wrote: »

Hi CSMR, I have been quoted from £5000 to £9500 by IFAs to do a transfer from DB to SIPP which is a no-brainer. They have all agreed it would be the best idea. If you know of an IFA who would do the job for £1000 could you please let me have the details?
Thanks.

Sorry I was away from the forum and didn't see your message. I found the best value by posting on bark.com . You want to get all the information together and reduce the work the IFA has to do to near zero. I did that and got 1% on a £75k transfer. You probably also need to suggest that lawsuit risk is minimized. I teach finance, made an unsolicited personal promise not to sue, and did not require positive advice, so the IFA may have felt safer.

I am wondering if there is a way to pay the fee out of the pension value rather than out of my own money. (So effectively out of gross income rather than net income.)

dunstonh

I did that and got 1% on a £75k transfer. £750 for probably 1hr work in the end, 2hrs max

I cant see how it is possible that there is just 1-2 hours work.

I really fear that these types of companies are just going to end up dumping their liabilities on the FSCS in the end leaving the long term genuine companies with the bill.

I teach finance, made an unsolicited personal promise not to sue, and did not require positive advice, so the IFA may have felt safer.

Which has absolutely no meaning and would be totally disregarded in the event you did decide to later take action.

I am wondering if there is a way to pay the fee out of the pension value rather than out of my own money. (So effectively out of gross income rather than net income.)

Yes there is if the receiving pension is one that the IFA sets up.