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

dunstonh

racey wrote: »

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.

If £500 is a lot then maybe you do need to be careful investing. You could lose £3000-£4000 in 12 months. you could lose £500 in days.

I am not trying to persuade you to pay for advice. I, think it is likely most wont be interested in offering services. However, £500 is not at all much money to pay a professional to do a job. Not in this day and age.

racey

dunstonh wrote: »

If £500 is a lot then maybe you do need to be careful investing. You could lose £3000-£4000 in 12 months. you could lose £500 in days.

I am not trying to persuade you to pay for advice. I, think it is likely most wont be interested in offering services. However, £500 is not at all much money to pay a professional to do a job. Not in this day and age.

Thanks for the advice.

MPN

Stubod wrote: »

....we have recently changed from SJP to a new IFA.....way lower cost (SJP 5%, current IFA 1% initial fees), + they have offered lots of good advice re pensions options etc. SJP not very helpful when it came to offering pensions advice etc.

I am still looking to change from SJP because of their high charges and therefore doing some research into finding an IFA. However, in fairness to SJP I must say that my pension investments with them is doing well so I'm quite happy but I still think its worth paying a fee for to an independent IFA for a second opinion on my pension and overall investments.

SJP have picked up two awards this year for Best Wealth Manager from Shares Awrds ands What Investment Magazine?

dunstonh

However, in fairness to SJP I must say that my pension investments with them is doing well so I'm quite happy but I still think its worth paying a fee for to an independent IFA for a second opinion on my pension and overall investments.

Done well in your eyes or done well relative to alternatives that you would realistically use?

SJP have picked up two awards this year for Best Wealth Manager from Shares Awrds ands What Investment Magazine?

Ignore awards. They are rigged or manipulated. Who do you think every employee votes for? How do you think a firm with 4 employees is going to do against a firm with 4000? We get emails from some providers asking us to vote for them. Most don't give two hoots about the awards. Magazine awards tend to focus on advertisers. The journalists just don't have the knowledge, experience and understanding to pick firms with a proper criteria. The awards are not a fair representation of the market or real world.

MPN

dunstonh wrote: »

Done well in your eyes or done well relative to alternatives that you would realistically use?

That's why I want a second opinion from an independent IFA but trying the find thev right one is proving quite difficult. I have had the SJP Pension for nearly 5 years and it has averaged about 8% per annum after charges.

racey

What do you have to do to call yourself an IFA? Do you have to complete a set of examinations?
Or is it like accountants where anyone can call themselves an accountant but you have to pass examinations to be an ACA or ACMA?

dunstonh

What do you have to do to call yourself an IFA? Do you have to complete a set of examinations?

IFAs and FAs have the same regulatory requirements. It requires qualifications to a certain level and FCA authorisation. There is ongoing CPD requirements and an annual certification of professional standing. If you do not have the qualifications and FCA authorisation then you are not allowed to refer to yourself as a financial adviser (although some scams will call themselves advisers when they are not - so always worth checking the FCA register).

An IFA has to cover all areas and have access to the whole of market. If you have any restriction in place then you cannot call yourself an IFA. A restriction can be minimal but it can be as extreme as SJP and be single tied. This is why IFAs will often not refuse to transact something they don't want to do but instead price themselves high to act as a blocker for things they don't want to do.

So, an SJP rep could have the same qualifications as an IFA (or even higher). However, their business model restricts what they can offer advice on and what products they can provide.

I have had the SJP Pension for nearly 5 years and it has averaged about 8% per annum after charges.

Noting that there has been very few negative periods in that 5 year period. That 8% could be good or it could be poor. Hence why it would need benchmarking against alternatives that are comparable and also relative to your risk profile. No point comparing things that are not relative to you.

racey

Further to my earlier posts regarding "ukmoneysite.com" I have received several emails asking me to ring but my request for the charges involved has been ignored.
Investment advice must be an area of potentially rich pickings for dodgy dealers.
1. Potential investors have obviously got money to spend.
2. It's easy to analyse current investments and conclude that there are better ways to invest.
3. Unlike tips for horses, there is no immediate way of telling whether the advice has been good or not.

dunstonh

Investment advice must be an area of potentially rich pickings for dodgy dealers.

it is. Cold calling and internet scams are pretty common. A week does not seem to go by on this board without someone posting about one of these dodgy schemes. Consistently, unregulated investments.

3. Unlike tips for horses, there is no immediate way of telling whether the advice has been good or not.

Yes there is. A third party should be able to look at the advice on day one and tell that it is suitable or not.

racey

dunstonh wrote: »

Yes there is. A third party should be able to look at the advice on day one and tell that it is suitable or not.

A third party may be able to tell if the advice is suitable according to the facts at their disposal at that time. Nobody can know if the investment will rise in price, however.
I'm not trying to be contentious but predictions can be wrong whether the governor of the Bank of England, the Chancellor of the Exchequer , or an IFA makes them.