Spooked by IFA - non Approval fee and Concern

mgdavid

GSP wrote: »

......... Wonder how much by deferring 13/14 years will increase my state pension..........

30 seconds with google says 5.8% per year.
You can do the arithmetic?

stephen160

tacpot12
Did you get a positive review? and would you mind letting us know the name of your ifa. £1000 seems a fair charge.

davieg11

I used unbiased and phoned local IFA's and luckily the 3rd one said he would do the transfer (as an insistent client) even if I didn't get a positive recommendation. In the end I got 2 positive recommendations so it was straightforward.

stephen160

davieg11
Would you mind letting me know how much they charged. I off to see an ifa later in the week and would like to be prepared

davieg11

My IFA charged 3% of my pot and is taking 0.65% on an ongoing basis to look after the investments. I've read here that the normal cost is between 1% and 3%. My pot is small so it cost £2k, but when I put £1.6k back in then add tax relief, it's not too bad.

hyperhypo

I'm in process of considering DB transfer , got the valuation, presently getting TVAS (?) analysis done but don't yet know of any transfer charges.

I'm sure in my case the decision will be close and likely come down on the stick side , and certainly any requirement to pay any more than 1% would add another line to the cons list (ie don't do it).

Paying > £4000 would be prohibitive for my part.

I'd be inclined to follow any advice provided .so no element of insistence.

However if the analysis was favourable , is an IFA likely to take on this type of work on on a time and materials basis, e.g. as a contractual daily or hourly rate...this is the only way i've ever engaged with an IFA in recent past ...i had a question over choice of funds within a company scheme ...and it cost me a couple of hours in fees.........which i felt was good value , and would be happy to work again on this basis.

Might this apply to DB transfers ?

dunstonh

However if the analysis was favourable , is an IFA likely to take on this type of work on on a time and materials basis, e.g. as a contractual daily or hourly rate...this is the only way i've ever engaged with an IFA in recent past ...i had a question over choice of funds within a company scheme ...and it cost me a couple of hours in fees.........which i felt was good value , and would be happy to work again on this basis.

Remember a DB transfer is not just about time. You cannot compare 4 hours doing an ISA with 4 hours doing a DB transfer. DB transfers are more about risk and liability. Although there are added costs as those that do DB transfers have higher running costs.

hyperhypo

@Dunstonh

Fair enough ...i wasn't wishing to make the fund choice / DB transfer in terms of same hours, rather asking whether anything other than % charging might be doable, not least as a seemingly (to me) high % based feel would preclude me going ahead.

dunstonh

hyperhypo wrote: »

@Dunstonh

Fair enough ...i wasn't wishing to make the fund choice / DB transfer in terms of same hours, rather asking whether anything other than % charging might be doable, not least as a seemingly (to me) high % based feel would preclude me going ahead.

Firms all have different options. Fixed fee is popular. Hourly rate is least popular with consumer. Percentage is just easy and popular which is why it is common.

You can ask firms if they will do it. Some will. My only point was that it would likely be at a high risk hourly rate rather than their conventional hourly rate.