Wealth Managers

wiltshiregirl69

Anyone have views on using Quilter or Seven for bespoke management investments and as an IFA. I'm looking for an advisor who can assist with my pension (around £520k at the moment) and handle my investments (around £200k). We save around £4k each month too.

My SIPP is with HL at the moment as are some of our ISA investments but I wonder if it worth moving to a more bespoke service who might help with investments into VCs/EIS (for example) alongside less risky investments - as I can no longer add more than £10k into my pension each year. I may also be coming into money at around £3 million over the next 3 years or so which will need to be invested and I do not have the skill set to do this myself

My work accountant has recommended their wealth manager but I wasn't very impressed with his opaqueness about charges when we met. He seemed to want to avoid answering the question simply which sends a red warning flag. From the jist of it he seemed to be mentioning around £12 - £15k for an initial round of advice/recommending a plan. Then 1.5% of all assets annually for 'managing' the investment managers. Its a lot considering their will be platform charges and fund managers charges on top of this - all adding up to around 2%. Is it worth it.

Keep_pedalling

I don't think either of those firms are IFAs, expensive FAs maybe.

dunstonh

The term Wealth Management tends to be used by firms that are not IFAs.

Aegis

I spent some time working as a financial adviser at an asset management firm, and one thing I'd suggest you make sure is that, if you use a firm like Seven or Quilter, you get financial planning alongside the investment management. Many firms will talk at great length about the work they do to maximise investment returns, but if they don't help you optimise the tax and ensure that you are looking at risk the right way, the return becomes much less relevant.


1.5% per annum is far too expensive for a financial adviser acting for you in both the planning and investment management capacity. £12-15k also seems very expensive for £700k or so of investments and pensions, unless the pensions are spread across multiple schemes each of which requires a complex analysis before transferring.


Why do you need a bespoke investment portfolio, out of interest? Most of your wealth is in a pension, so it's probably not for tax reasons, so have you highlighted any specific ethical or compliance issues which require you to run a bespoke portfolio rather than a model one?

wiltshiregirl69

Aegis wrote: »

I spent some time working as a financial adviser at an asset management firm, and one thing I'd suggest you make sure is that, if you use a firm like Seven or Quilter, you get financial planning alongside the investment management. Many firms will talk at great length about the work they do to maximise investment returns, but if they don't help you optimise the tax and ensure that you are looking at risk the right way, the return becomes much less relevant.

Thanks

1.5% per annum is far too expensive for a financial adviser acting for you in both the planning and investment management capacity. £12-15k also seems very expensive for £700k or so of investments and pensions, unless the pensions are spread across multiple schemes each of which requires a complex analysis before transferring.
Thanks - I thought that too.

Why do you need a bespoke investment portfolio, out of interest? Most of your wealth is in a pension, so it's probably not for tax reasons, so have you highlighted any specific ethical or compliance issues which require you to run a bespoke portfolio rather than a model one?

It's mainly knowing how to save for retirement with only being able to contribute £10k a year and also that my pension is invested in the best funds. Perhaps I should just move from choosing my own funds in HL to the portfolio+ one which rebalances your SIPP funds once or twice a year.

wiltshiregirl69

dunstonh wrote: »

The term Wealth Management tends to be used by firms that are not IFAs.

Does that mean that you don't think they are as a good. The accountant's one seemed to suggest that he had experts in different fields that other more basic IFA firms don't have - e.g. tax experts specialising in EISs etc - which I am keen on as part of our portfolio as it helps with tax planning. Its just the cost of getting the advice and a plan of action seems frankly extortionate both annually and initially.

dunstonh

Does that mean that you don't think they are as a good.

Putting aside personality of the individual, an FA has restrictions on what they can do. An IFA cannot have restrictions. Those restrictions could be an investment type, could be providers, could be areas of advice etc. So, the general rule of thumb is that when you want an adviser, you should use an IFA.

As for investment style, I am not a fan of DFMs. They add an extra layer of charges, make the work easier for the FA/IFA (but you still pay the FA/IFA the same) and they dont appear to add any real quality.

Some advisers swear by them but that is often the type that are focused on high end tax or complicated issues and want to farm the investments out to a third party. Others, like myself, prefer not to use them.

The accountant's one seemed to suggest that he had experts in different fields that other more basic IFA firms don't have - e.g. tax experts specialising in EISs etc - which I am keen on as part of our portfolio as it helps with tax planning.

He is right. An IFA who deals with a particular type of client on a more frequent basis is going to be more knowledgeable in that area that one that has clients that are unlikely to need those sorts of things. Although all IFAs should be capable.

However, those things also tend to cost more in advice. So, its a balance between cost and tax saving. With large amounts, it can be worth it. With small/medium amounts, it may not be worth it.

reeac

Aegis wrote: »

I spent some time working as a financial adviser at an asset management firm, and one thing I'd suggest you make sure is that, if you use a firm like Seven or Quilter, you get financial planning alongside the investment management. Many firms will talk at great length about the work they do to maximise investment returns, but if they don't help you optimise the tax and ensure that you are looking at risk the right way, the return becomes much less relevant.


Why do you need a bespoke investment portfolio, out of interest? Most of your wealth is in a pension, so it's probably not for tax reasons, so have you highlighted any specific ethical or compliance issues which require you to run a bespoke portfolio rather than a model one?

Bespoke has become an "in" adjective in adverts in the past few years. e.g. Bespoke holidays, bespoke furnishings, bespoke decorating. Presumably thought to create an aura of exclusivity.