£120k to invest

ashpan

I have sacked my IFA due to increasingly high fees so now have a total of around £120k to invest, £10k of which i will put towards an existing £10k ISA before the end of this financial year with Evestor to max out my allowance and another £20k in a new ISA at start of 2019/2020 tax year.

Looking for some income (i work pt and am a basic rate taxpayer) as hoping to retire from the education system next year and become self employed on a very part time basis, but mostly growth as this is basically my private pension. Im happy to take some slight risks but have made a big mistake in the past so a bit risk averse at the moment!

Looking for suggestions from the savings gurus on here as definitely not my area of expertise!

Mr.Saver

If you were using an IFA and stopped because high fees, why don't you find another IFA who charges a more reasonable fee?

A mistake can cost you more than the cost of an IFA for sure. From your post, you don't look like someone who is experienced.

Malthusian

How is it invested now?

Any reason not to simply ask the existing provider to remove the IFA's servicing? (Some providers will apply an extra charge for non-advised clients, but this should be the starting point.)

ashpan

I’ve asked and the account has to be managed by an IFA

enthusiasticsaver

Might have been a good idea to do some research before sacking your IFA especially if you are not experienced. You have to look at returns as well as fees. Where is it invested and what returns/fees have you been getting/paying over the last few years?

From your post you are risk averse and obviously have other savings/investments if you have an existing ISA. Where is that invested at the moment (ie what fund). There are several ways of getting income either by using an income portfolio, an annuity or monthly drawdown but from the sound of it the £120k or £90k once you have topped up your ISAs is not in a SIPP or private pension? Is it just an unwrapped investment?

There is no one answer to your question as it depends on circumstances, attitude to risk etc so I think I would hold fire and maybe research other IFAS with lower fees if that is what the issue is. What rates was he or she charging? Presumably just an ongoing service charge each year?

ashpan

yes ongoing service charge every year, my SIPP is with parmenion and has hardly increased in value in the past 3 years due to advisor fees and parmenions fees
i have a s&s isa with evestor which is performing very well so i was going to put an additional 10k in there this weekend to bring it up to my allowance but then again im going to need a new (pre-loved) car in the next 12 months, decisions decisions!
i have now withdrawn the permitted 25% from my SIPP so will be looking to invest around £20k from this in the next few weeks, the SIPP is still in place as i was told that my tax liability would increase for 19-20 if i closed the account, im a basic rate tax payer - are they just trying to scare me?

ashpan

i guess i just want to keep charges as low as possible, im also considering the DIY option for a SIPP

enthusiasticsaver

ashpan wrote: »

yes ongoing service charge every year, my SIPP is with parmenion and has hardly increased in value in the past 3 years due to advisor fees and parmenions fees
i have a s&s isa with evestor which is performing very well so i was going to put an additional 10k in there this weekend to bring it up to my allowance but then again im going to need a new (pre-loved) car in the next 12 months, decisions decisions!
i have now withdrawn the permitted 25% from my SIPP so will be looking to invest around £20k from this in the next few weeks, the SIPP is still in place as i was told that my tax liability would increase for 19-20 if i closed the account, im a basic rate tax payer - are they just trying to scare me?

I don't know anything about Parmenion and it depends what you are invested in as to why the value has not increased. The stock market has been a little volatile over the last 6-9 months but if over 3 years it has not performed sufficiently well to cover fees and provide growth I think I would be worried too. Have you asked the IFA why it is not increasing in value?

There are rough benchmarks for IFA fees so it depends what percentage you are paying. Having said that we are going with an IFA hopefully in next few months and the ongoing service charges depend on total amount of portfolio with his charging structure.

Re the SIPP, if you take out more than the 25% tax free sum then the remaining 75% is liable for tax if you take it out over just one tax year. Is this where the £120k is invested? Can you not just transfer to either another advisor or another fund?