Old Mutual dilemma

glebeboy

Hi
I have a pension collective retirement account with Old Mutual invested in their wealth select 6 fund and I have recently parted company with my IFA.
OM have told me to get another IFA or my portfolio will no longer be managed/rebalanced.
As I couldn't see what my IFA did for his money I am thinking of moving my pension.
I would be interested to see what the forum would do, my initial thoughts are to open a sipp with a platform like iweb and invest in a Vanguard Life Stategy fund. The VLS 6 looks to have a similar performance level to my OM fund. A downside to this, the pension transfer could take up tp 6 weeks according to iweb.
My pension value is £200k and I have taken my lump sum, I intend to start drawing down in a couple of years.
Any thoughts please?

stephen160

What is the platform charge for Old Mutual ?

dunstonh

I have a pension collective retirement account with Old Mutual invested in their wealth select 6 fund and I have recently parted company with my IFA.

The wealth select options were typically used by FAs rather than IFAs. Its the in-house option for Old Mutual and you tend to see it from Intrinsic restricted FAs.

As I couldn't see what my IFA did for his money I am thinking of moving my pension.

If you dont use an adviser to rebalance then you will need to rebalance or use a more expensive multi-asset fund.

Why do you need to move your pension?

I would be interested to see what the forum would do, my initial thoughts are to open a sipp with a platform like iweb and invest in a Vanguard Life Stategy fund

That fund is also available on OMW. its a perfectly good fund. We use it sometimes with our inexperienced investors who dont know what they are doing. Returns have been consistently lower but its perfect for it does.

A downside to this, the pension transfer could take up tp 6 weeks according to iweb.

OMW support the Options transfer system so its days for them. However, if your new provider is stuck in the stone age then 6 weeks sounds about right.

glebeboy

Thanks for reply
.
Old Mutual charge me 0.5% for first 25k then 0.35% for 25-100k and 0.3% 100-500k.

The reason I'm considering moving is because I no longer have a FA, Old Mutual say my pension will be unlinked from the Wealth Select 6 fund and therefore will not be managed by the fund manager.
I didn't know the Life Stategy funds were available on OM so I think I'll have a word with them and see if I can switch.

dunstonh

Old Mutual charge me 0.5% for first 25k then 0.35% for 25-100k and 0.3% 100-500k.

That means you are on charge basis 3. CB1&2 are better for small values (getting you 0.2x% all in potentially). CB3 needs a higher value to become cost effective. Although OMW have the largest range of superclean share classes of any platform.

The reason I'm considering moving is because I no longer have a FA, Old Mutual say my pension will be unlinked from the Wealth Select 6 fund and therefore will not be managed by the fund manager.

Which is not a bad thing. Wealth select is their in-house solution. They are just saying that as you have removed the adviser, they cant make the changes any more and that they dont support you doing it. So, you have to self select instead. Just as you would do with any other platform you use.

tyllwyd

I parted company with my IFA a few years ago and since then I've been managing my Old Mutual pension myself. They've written to me a couple of times advising me to consider getting a financial adviser, but otherwise no hassle. I can log in online and it's reasonably easy to see where my money is invested and switch to new funds.

Sportfire

glebeboy wrote: »

Hi
I have a pension collective retirement account with Old Mutual invested in their wealth select 6 fund and I have recently parted company with my IFA.

Any thoughts please?

Sorry a 'bit' late to the thread and my 1st post, but this is where i sit near as damn apart from i have 300k in OMW . I to have looked to move away from my FA and OMW as my total fees are 1.65% 0.3 platform 1.15 investment 0.5% FA.

The FA is pretty much non present since i signed up over 12 months ago, only seen to sign contracts . I have had no ongoing advice yet on any of my other pension contributions or BTL tax etc. Almost all what i have gleamed on investments is from forums and reading up myself.

My initial thoughts were i could save myself at least the FA fee, but you are correct OMW will not allow you to use their platform and investment book, so i looked around for another platform and guess what there are miles better ones out there.

I have chosen II as my platform, their fee is £250.00 a year and depending on what investments you make into your SIPP, i have gone for 5 x ETFs 60/40 mainly vanguard my investment fees are approx 0.3%. my fees cut from £4.9 k to £1,3 k next year . A 1.2% saving on fees makes a very big difference over 30 years.

I am almost certain that there are plenty of FAs out there who offer their clients what they need and earn their £, but i suppose i am my own worse enemy if you ask the FA too many questions you become too much trouble for your money.

dunstonh

but you are correct OMW will not allow you to use their platform and investment book,

Yes they do. As I said earlier, they dont allow their wealth selection option. They do allow it on the self select option. Its a button press to move between the two.

and guess what there are miles better ones out there.

OMW's platform is not bad. Yes there are better but not many that are miles better. Plus, OMW have the largest superclean range.

I have chosen II as my platform

Interesting choice considering you say "miles better". II have an awful reputation.

i have gone for 5 x ETFs 60/40 mainly vanguard my investment fees are approx 0.3%. my fees cut from £4.9 k to £1,3 k next year . A 1.2% saving on fees makes a very big difference over 30 years.

You have also lost your FSCS protection by doing that. If you had stuck with OMW on self select, you could have had the ishares funds with FSCS protection on a superclean priced basis for a similar price.

atush

Have you considered any income funds for your drawdown? Alongside your multi asset

Sportfire

Thank you for reply , if i had a FA as keen i would consider staying put

dunstonh wrote: »

Yes they do. As I said earlier, they dont allow their wealth selection option. They do allow it on the self select option. Its a button press to move between the two..

Yes you are correct you can self select and it is a couple of button moves between the two but why should i pay 1.15 % when i can self select for value with the same out comes furthermore i just don't like the feel of OMW platform , maybe you FAs have more tools and a different layout, but as i said in my opinion there a miles better platforms out there for investors. Or perhaps i should have had some guidance from my FA !

wrote:

OMW's platform is not bad. Yes there are better but not many that are miles better. Plus, OMW have the largest superclean range..

Clean or superclean , you truly believe in these classes . more jargon to baffle clients imo

wrote:

Interesting choice considering you say "miles better". II have an awful reputation..

where did I say II was miles better , i said that there are miles better platforms out there, i happened to choose this one because i have had it from TD days and i like the functionality. i would not say say it is 10 out 10 but 7 of 10 good enough for me and better on layout , tools and more importantly on the value side of things.


[QUOTE=You_have_also_lost_your_FSCS_protection_by_doing_that.___If_you_had_stuck_with_OMW_on_self_select,_you_could_have_had_the_ishares_funds_with_FSCS_protection_on_a_superclean_priced_basis_for_a_similar_price.[/QUOTE].[/QUOTE]

I have FSCS protection on my Sipp , i could split it between 5 firms but so what i pays no more i take the risk, plus i have an ishare s&p 500 @ 0.07 charge i do like them as well 'value for money and hopefully good outcomes

Have a good weekend and again thank you for taking the time to respond your clients are in good hands :beer: