Financial advisor

dbrookf

My husband and I last year decided to use the services of a financial advisor to manage our pensions of which we both had several from different ex-workplaces. We are being treated as two separate individuals, i.e. my ex pensions and his ex pensions are wrapped up as two separate items for which we pay the financial fees separately. Both our pensions have been I nvested in virtually identical funds.

My question is could we put all our pensions together in order to save on fees? And also do you think it is sensible for our two separate ones to be invested in virtually the same funds by our financial advisor?

Dox

Have you asked your adviser whether there is any scope for some sort of fee saving?

You are the one who makes decisions on where funds are invested; your adviser recommends (and should give reasons for the recommendation). A site like this isn't a substitute for advice based on your personal circumstances; that's why you pay fees to your adviser - who is, I trust, independent?

Linton

You cannot put two peoples pensions into one account or transfer pension money from one person to another. However it may not make a lot of difference as many charges are % based so two smaller accounts cost the same as a single combined one. There could be a case for using different platforms in order to spread any (admittedly very small) risks.

It may or may not be sensible for a husband and wife’s pensions to be invested in the same way. If both had similar characteristics such as age, good health, years until retirement, other investments etc etc then using the same portfolio structure seems reasonable. ISTM an IFA should analyse both separately and then come to an appropriate conclusion for each documenting the rationale. If the conclusion is the same for both, so be it.

Aegis

In theory you can combine the investments of two pensions via a family SIPP or similar, but every time I've seen it in action I've found it adds huge amounts of needless complexity. On top of that, your pension taxation and contribution / withdrawal limits are individual, so there would only be a saving on the investment charges, not the surrounding planning.


Overall, it's very unlikely to be appealing, but you can ask your adviser to see what he thinks.

dunstonh

My question is could we put all our pensions together in order to save on fees?

It won't save fees.

Lets say your total charge is 1.25% pa. (all in).
If you have two pots of £125k, then that is £1562.50 each
If you had one pot of £250k, then that is £3125. Exactly the same.

Some platforms have family linking where the platform charge is reduced based on total holdings between family members. However, that doesnt mean you need to combine.

Both our pensions have been I nvested in virtually identical funds.

As you would expect. If its good enough for one then why wouldnt it be good enough for the other.

HappyHarry

fred246 wrote: »

IFAs charge a fortune to fill in a few forms. How many questions do they ask? It's obvious that they work on a very simple algorithm and as in this case often end up with the same outcome. It should be easy for a team of investment professional to come up with a computer algorithm. All you would do is answer the questions and the computer would give it's recommendations. A bit like obtaining car insurance quotes. I would trust that much more than an IFA. Hopefully these IFA parasites can in time be eradicated and their job be taken over by computer algorithms. Never has so much been charged for so little. Bring on the robots!

Christmas cheer lacking in the fred246 household?


It's clear from your many comments that you have no idea what an IFA does. Why do you keep showing off your ignorance?

fred246

HappyHarry wrote: »

It's clear from your many comments that you have no idea what an IFA does. Why do you keep showing off your ignorance?

I know exactly what they do. Ask a few questions. Fill in a few forms. Charge a few thousand.

HappyHarry

fred246 wrote: »

I know exactly what they do. Ask a few questions. Fill in a few forms. Charge a few thousand.

Well, yes, those are three things they do.



As you have intimated, asking a few questions and filling in a few forms doesn't justify thousands in fees.



Do you know what it is they do that do justify those fees? I'm guessing not - but please do prove me wrong.

fred246

HappyHarry wrote: »

Do you know what it is they do that do justify those fees? I'm guessing not - but please do prove me wrong.

Those fees are not justified. They used to hide the commission on the last page in the hope that nobody read that far. Now they do the estate agents trick of charging a percentage so it sounds less. Of course if the pension is too low then suddenly the percentage is not the way to charge and an hourly rate is quoted high enough to get rid of someone who's net worth means they're not worth talking to.

OldMusicGuy

fred246 wrote: »

IFAs charge a fortune to fill in a few forms. How many questions do they ask? It's obvious that they work on a very simple algorithm and as in this case often end up with the same outcome. It should be easy for a team of investment professional to come up with a computer algorithm. All you would do is answer the questions and the computer would give it's recommendations. A bit like obtaining car insurance quotes. I would trust that much more than an IFA. Hopefully these IFA parasites can in time be eradicated and their job be taken over by computer algorithms. Never has so much been charged for so little. Bring on the robots!

No-one forces you to use an IFA (unless you want to transfer from a DB pension to a DC one, and there are good reasons for that). All you need to do is educate yourself and you can DIY for nothing. Well, apart from platform and fund fees.

So either spend some time reading and do it yourself, or use an IFA. Can't see why you whinge about IFAs when you can completely ignore them.

dunstonh

Now they do the estate agents trick of charging a percentage so it sounds less.

Wrong again. it is mandatory for fees to be displayed in monetary terms as well as percentage.