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Investment and other charges - good value?
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tenchy
Posts: 486 Forumite
I'm in the enviable position of having £600k+ to invest in a drawdown scheme. I've had some initial quotes from a financial advice company (I won't name them yet, but bear in mind they are not the fund managers) and their upfront fees for setting up the arrangements are 1.8% of the fund value (i.e. they want a lot of money). What does anyone think of this?
Incidentally, annual management fees, should you choose to accept, are about 1% of fund value.
Incidentally, annual management fees, should you choose to accept, are about 1% of fund value.
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I'm in the enviable position of having £600k+ to invest in a drawdown scheme. I've had some initial quotes from a financial advice company (I won't name them yet, but bear in mind they are not the fund managers) and their upfront fees for setting up the arrangements are 1.8% of the fund value (i.e. they want a lot of money). What does anyone think of this?
Incidentally, annual management fees, should you choose to accept, are about 1% of fund value.
Well, are they IFAs? Seems too high to my eyes. I mean, £10,800 fees? Geez.0 -
Way, way over the top. Save yourself a lot of money and look into a DIY option.0
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JoeCrystal wrote: »Well, are they IFAs? Seems too high to my eyes. I mean, £10,800 fees? Geez.
Yes, independent. One of the major players.0 -
It isn't SJP is it?
They are not independent!0 -
greenglide wrote: »It isn't SJP is it?
They are not independent!
No, not SJP. The adviser is 'whole market', well known, and definitely independent, and to be fair, have good reports generally. Looking further, they are noted as being one of the more expensive companies. I was just taken aback by the scale of their charges, and I'm particularly not impressed that fees are based on fund value. Okay, the fund manager will base his fees on the fund value, fair enough, but the advisers!0 -
I don't see what you mean. Can you explain? Where is the money now? Are you planning to transfer it, and if so where to?
Retiring. The money is in a company DC scheme and I'll be reinvesting it for flexible drawdown. As to where to transfer it - I'm just starting to look, but the FA has various ideas that involve specialist fund managers rather than your run-of-the-mill Avivas and the like.0 -
Why oh why would you pay 1.8% and then 1% on going fees to a finance company? That 1% will be around 25% of your drawdown income. Do some reading and then DIY with one of the low cost fund platforms......it's a pity Vanguard doesn't have anything available in the pensions/drawdown field yet, but there are lots of options.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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1% to 3% is par for the course from what I’ve experienced going from DC to Sipp. Paid 0.75% ish in the end. FA took flack from oversight part of the outfit for exposing firm to DC to Sipp advice.0
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