Intelligent Pensions

Oggers

As the title suggests, has anyone anything to say - good or bad - about Intelligent Pensions, retirement specialists based in Glasgow.

dunstonh

Never heard of them. However, I did have a chuckle at their website which claims they are the UK's leading pension & retirement planning specialists. I suppose anyone can call themselves anything if they want.

Oggers

It is the usual dilemma. Pay small fees with HL as a platform only and conduct a DIY SIPP, or pay someone like this lot 1% upfront and 1.2% annually IRRC to manage the whole SIPP thing for you.....

Al.

Why a SIPP?

kidmugsy

Oggers wrote: »

It is the usual dilemma. Pay small fees with HL as a platform only and conduct a DIY SIPP, or pay someone like this lot 1% upfront and 1.2% annually IRRC to manage the whole SIPP thing for you.....

1.2% annually could well consume half of the return on a mixed portfolio of bonds and equity. So look upon it as a 50% fee.

dunstonh

It is the usual dilemma. Pay small fees with HL as a platform only and conduct a DIY SIPP, or pay someone like this lot 1% upfront and 1.2% annually IRRC to manage the whole SIPP thing for you.....

An IFA would typically be 0.5% pa. but the platform would likely be cheaper than HL. 1.2% could well be the bottom line for an IFA (platform, funds and adviser charge)

Oggers

Here are their fees - copied from their website

Initial Fee: 1% of the amount invested (minimum £1,000)
Ongoing fee (payable quarterly in arrears):
1.00% p.a. on the first £300,000 (minimum £250 per quarter)
0.50% p.a. on the next £700,000, and
0.25% p.a. on all funds in excess of £1m
Other fees and charges (where Intelligent Pensions SIPP used):
0.75% p.a. on fund value. This charge covers all administration costs and annual management charges for all investments

Assuming a SIPP it seems pretty steep to me. Their USP is that the fund is "pro-actively managed" but then so are my DIY managed funds held with HL, for which the fees are nowhere near the above.

To cancel out the detrimental effect of their fees to my fund, would they have to be a consistently stunning performer?

Malthusian

Oggers wrote: »

To cancel out the detrimental effect of their fees to my fund, would they have to be a consistently stunning performer?

To cancel out the effect of their fees you need to value their ongoing advice, tax planning, administrative assistance and taking the need to research the market and keep up to date with tax and legislation out of your hands by more than 1% per annum. (Or whatever it works out as for your portfolio.)

Performance has nothing to do with it. Paying an IFA 1% a year does not mean you should be guaranteed extra investment returns of 1% a year. If that was the case using an IFA would be free money.

Oggers

Malthusian

Let us assume 400k which annually is 6500 plus initial of 4000. This seems very high in comparison with HL for example - which incidentally offers similar advice for a much lower cost although granted I have not taken the option for HL to manage my fund.

I appreciate that of course performance is not guaranteed, but it strikes me that for the high charges incurred there should be at least some degree of improvement over that which could be achieved by the average investor.

dunstonh

Let us assume 400k which annually is 6500 plus initial of 4000. This seems very high in comparison with HL for example - which incidentally offers similar advice for a much lower cost although granted I have not taken the option for HL to manage my fund.

HL offers restricted advice and the HL platform is not cheap compared to other options open to IFAs.

I appreciate that of course performance is not guaranteed, but it strikes me that for the high charges incurred there should be at least some degree of improvement over that which could be achieved by the average investor.

The charging structure indicates they are targeting higher net worth clients and not smaller or medium size net worth clients. Clients with that level of assets/income have more needs, more allowances, more issues to deal with and are less likely to want to spend their more valuable time doing things that an IFA can do.

If a pricing model does not fit the individual then there are plenty of others out there that will. Firms that dont really want small/medium investors tend to set their charges as a passive blocker.