IFA/Pension fees

trf1960

Can someone please let me know if these fees are typical for an IFA and Platform provider. My IFA charges 0.75% per annum and the platform provider (Transact) charge 1%. My portfolio is currently around £260,000.

My maths are not great so correct me if I am wrong but am I paying around £4550 per year for this service and if so, is this considered high or average??

My IFA has informed me that since September last year I have pretty much broken even (with a loss of around £6k at one point) but that 'they' have weathered the downturn better than most. I know Brexit is throwing the markets into turmoil but if I am going to be pay that amount and more over the years I sure hope they start making me serious money.

Any advice/clarification welcome.

dunstonh

. My IFA charges 0.75% per annum and the platform provider (Transact) charge 1%. My portfolio is currently around £260,000.

Transact charges are not 1%.

Transact is:
0.29% - £0 -- £600,000
0.19% - £600,000 -- £1,200,000
0.07% - 1,200,000 -- £5,000,000
0.05% - On the remainder

At 260k you should be able to get 0.5%.

I know Brexit is throwing the markets into turmoil

Not really. Only UK equity and mainly at the small and mid cap range. Your investments probably only have upto around 25% in UK equity.

I am going to be pay that amount and more over the years I sure hope they start making me serious money.

An economic cycle is around 10 years. SIn that time you will have negative years, positive years and nothing years. You need to average out and not take short periods in isolation.

Albermarle

I know Brexit is throwing the markets into turmoil

The markets are relatively stable in historical terms . In any case they are much more affected by what happens globally , than a more local issue like Brexit.

trf1960

Thank you Dunstonh, I have checked my Transact portal and it shows for my portfolio a 0.29% charge so I have brought this to my IFA's attention which is worrying as he gave me that figure !

Pension_Geek

trf1960 wrote: »

Thank you Dunstonh, I have checked my Transact portal and it shows for my portfolio a 0.29% charge so I have brought this to my IFA's attention which is worrying as he gave me that figure !

Possibly the fund charges?

trf1960

apparently he forgot to mention Transact's fund managers charges which brought it up to 1%. I am starting to wonder who else I am paying to look after my relatively small pension pot?

JoeCrystal

trf1960 wrote: »

apparently he forgot to mention Transact's fund managers charges which brought it up to 1%. I am starting to wonder who else I am paying to look after my relatively small pension pot?

£260k is not a relatively small pension pot! In 2016 ONS survey, the median household current occupational defined contribution pensions is £7k while personal pensions is £26k. The median household total pension wealth of those who do have pension schemes is 115k.

dunstonh

trf1960 wrote: »

apparently he forgot to mention Transact's fund managers charges which brought it up to 1%. I am starting to wonder who else I am paying to look after my relatively small pension pot?

There should be no wondering at all.

1 - The suitability report would have the charges on it
2 - the costs and disclosures illustration (various names for it) will have all the charges on it.

What appears to have happened is you combined the fund charges and the platform charge to make it 1%.