IFA Investment Vehicles

segovia

Assuming I did go to an IFA and agreed on a transfer fee to move our personal pensions pots, what would the IFA move them to, a SIPP or do they have other investment vehicles?

I have had a few discussion over the past few years with IFA's and they have all said more or less the same

1, Current personal pension is adequate, not super performing but charges not unreasonable.
2, I could do better if I moved to another "??????" (they didn't say what) and they would charge 1.5% £6,000.00 and 1% annual charge

I never considered moving with an IFA so I never bothered to ask what they were planning on moving me to. Would it of been a SIPP of their recommendation?

Albermarle

As far as I know they tend to go for personal pensions rather than SIPPS . In reality there is not a huge amount of difference between a modern personal pension, with up to date good software for drawdown, and a SIPP.

segovia

Albermarle wrote: »

As far as I know they tend to go for personal pensions rather than SIPPS . In reality there is not a huge amount of difference between a modern personal pension, with up to date good software for drawdown, and a SIPP.

Thanks, is it extremely unlikely that an IFA would recommend me to transfer into a SIPP.

I am curious to know why the IFA's I have seen have never mentioned a SIPP.

dunstonh

ssuming I did go to an IFA and agreed on a transfer fee to move our personal pensions pots, what would the IFA move them to, a SIPP or do they have other investment vehicles?

Generally, a pension transfer would go into a stakeholder pension, personal pension or a SIPP. There are a few others which are non-mainstream

Thanks, is it extremely unlikely that an IFA would recommend me to transfer into a SIPP.

No. Whilst there are still a few viable personal pensions out there, the majority of platforms operate a SIPP.

I am curious to know why the IFA's I have seen have never mentioned a SIPP.

Did you ever get to the stage of having a formal recommendation? If not, then details that the average consumer doesn't care about during preliminary discussions wouldnt come up.
Also, it is only a few years ago that personal pensions were the dominant option. The move to SIPPs has been increasing annually. Two of the biggest PPP providers closed their personal pensions in the last 18 months.

segovia

dunstonh wrote: »

Generally, a pension transfer would go into a stakeholder pension, personal pension or a SIPP. There are a few others which are non-mainstream



No. Whilst there are still a few viable personal pensions out there, the majority of platforms operate a SIPP.



Did you ever get to the stage of having a formal recommendation? If not, then details that the average consumer doesn't care about during preliminary discussions wouldnt come up.
Also, it is only a few years ago that personal pensions were the dominant option. The move to SIPPs has been increasing annually. Two of the biggest PPP providers closed their personal pensions in the last 18 months.

We never got into the details but I got the impression the pensions they wanted to move me to were "boutique", type because they mentioned the name of the fund managers and they had a minimum investment of £50,000.00. This is what made me think they were not mainstream, which made me even warier.

dunstonh

We never got into the details but I got the impression the pensions they wanted to move me to were "boutique"

Most boutique advice firms are not IFAs or were but have been told to change to FA (or have yet to be instructed to change).

because they mentioned the name of the fund managers and they had a minimum investment of £50,000.00.

I would expect the adviser firm working on an advisory basis to know which fund houses they are likely to use as their investment process would be in place and they are probably doing multiple new investments a week and multiple reviews of existing.

Boutique firms tend to use DFMs for investment solutions rather than advisory solutions.