St James Place Pension Fund - Stay or Transfer to a SIPP

bigadaj

racey wrote: »

How much do IFAs charge, roughly?
I realise it will vary but I would like some idea.

It will vary hugely, some will only want to work with the rich and set fees appropriately with high minimum fees.

Often quoted numbers are initial charges of 1-3%, and annual costs of 0.5-1%, lower charges on higher amounts transitioning when you get up to and beyond six figures.

Stubod

..we have been quoted initial fee 0f 1.5%, ongoing annual fee of 0.75% by one provider, compared to SJP who quoted 5% on any new money invested and 1.5% ongoing. (6 figure sum)

racey

Stubod wrote: »

..we have been quoted initial fee 0f 1.5%, ongoing annual fee of 0.75% by one provider, compared to SJP who quoted 5% on any new money invested and 1.5% ongoing. (6 figure sum)

Just to be clear. On an investment of £10000 you pay an initial fee of £150 plus £75 p.a. and double that on £20000. This will be in addition to the platform fees, etc, charged by the broker.
Is this correct?

bigadaj

racey wrote: »

Just to be clear. On an investment of £10000 you pay an initial fee of £150 plus £75 p.a. and double that on £20000. This will be in addition to the platform fees, etc, charged by the broker.
Is this correct?

The principle is correct but no ifa would deal with £10k.

You're probably looking at a minimum of sat £30k to make it worthwhile, and at this figure you would be at the top end of percentage charges, so 3% initial and 1% ongoing. Initial fee of around £1000 and ongoing reviews for maybe £500.

Might look expensive but the ifa will have minimum levels and whilst there is more liability with larger pots then that is less than the number of individual accounts.

There's no reason why you can't diy of course, it's not too difficult but needs some reading, thought and consideration.

dunstonh

In a quiet period an IFA may well deal with £10k on a transactional basis. If the transaction is simple and can be turned around quickly then £500 with no ongoing would be typical.

MPN

I've just noticed on the SJP website that they have won a few awards this year including 'Best Wealth Manager 2016 by the reeaders of Shares Magazine and also What Investment!

bigadaj

dunstonh wrote: »

In a quiet period an IFA may well deal with £10k on a transactional basis. If the transaction is simple and can be turned around quickly then £500 with no ongoing would be typical.

So 5% then.

racey

bigadaj wrote: »

So 5% then.

That's an awful lot of money for a guess, albeit an informed guess
It seems like reading newspapers, magazines, books, etc might be the way to go.
Obviously the professional advisors will disagree.;)

dunstonh

That's an awful lot of money for a guess, albeit an informed guess

Not its not. Percentages need placing in context with the amount. 5% on £10,000 is not a lot. 5% on £100,000 is far too high.

It seems like reading newspapers, magazines, books, etc might be the way to go.

If you get it right and dont end up fashion investing or going in above your risk profile (common newbie DIY investor mistakes)

Obviously the professional advisors will disagree.

I have never said people should not DIY. I always say that the choice is DIY or IFA. The rest to be ignored. However, DIY does require to you have knowledge or it could end up being a costly mistake.

racey

dunstonh wrote: »

Percentages need placing in context with the amount. 5% on £10,000 is not a lot. 5% on £100,000 is far too high.

It's a matter of perception and personal circumstances. £500 may not be a lot to you but it is to me for advice on an investment of £10000.