Ongoing IFA Charge & Fees

wjr4

Deleted_User wrote: »

Out of interest why a SIPP - why not use the IFAs platform (if it is available). My IFA offers portfolios and a platform (fee for platform is 0.25%, his fee ranges from £1.6k-£2.5k or any time access and access to alternative portfolios for 1%)

IFAs do not have their own platform.

HappyHarry

segovia wrote: »

Quote from the IFA's

"The fund is a service that plugs into your SIPP as your funds are now being continuously and independently discretionary managed. By virtue of it being a service, it becomes vatable."

There we go, discretionary management. Yes, that is vatable.

£400k is probably towards the lower end of funds for discretionary management.

wjr4

fred246 wrote: »

0.5% ongoing is actually an outrageous amount. Someone on here was saying they pay £1750 for a £350k pension. The money is invested in long term investments. All it needs is a check up. My hairdresser comes to my house and not only checks my hair she actually cuts it for under £10. She has business expenses too. How can anyone justify £1750?. How many hours does it take an IFA to look at a portfolio? Total rip off.

You must be the most annoying person on this forum apart from Crashy!

wjr4

segovia wrote: »

Quote from the IFA's

"The fund is a service that plugs into your SIPP as your funds are now being continuously and independently discretionary managed. By virtue of it being a service, it becomes vatable."

This is because they are using a discretionary fund manager (DFM) Which SIPP is this and who is the discretionary manager? Personally, I would find an IFA who does not use a DFM as this adds a layer of costs. The usual initial charge is 1-3% of your portfolio however many IFAs do a fixed fee. This is not subject to VAT. The ongoing charge is also not subject to VAT. Find someone else!

segovia

fred246 wrote: »

0.5% ongoing is actually an outrageous amount. Someone on here was saying they pay £1750 for a £350k pension. The money is invested in long term investments. All it needs is a check up. My hairdresser comes to my house and not only checks my hair she actually cuts it for under £10. She has business expenses too. How can anyone justify £1750?. How many hours does it take an IFA to look at a portfolio? Total rip off.

I have to confess to being very much Anti-IFA, and bracketing them in the same category as double glazing and used car salesmen (no offense to any DG of Car Salesman on this forum). However, having looked at the self-managed SIPP options and reading all the books recommended on this forum, I decided I don't have the time to invest in a long learning curve.

segovia

wjr4 wrote: »

This is because they are using a discretionary fund manager (DFM) Which SIPP is this and who is the discretionary manager? Personally, I would find an IFA who does not use a DFM as this adds a layer of costs. The usual initial charge is 1-3% of your portfolio however many IFAs do a fixed fee. This is not subject to VAT. The ongoing charge is also not subject to VAT. Find someone else!

Talbot and Muir SIPP with Rathbones MPS Fund

Initial charge is appx .75%

wjr4

segovia wrote: »

Talbot and Muir SIPP with Rathbones MPS Fund

Initial charge is appx .75%

Very expensive option in my opinion! Is there a reason they have recommended this over other options?

wjr4

segovia wrote: »

I have to confess to being very much Anti-IFA, and bracketing them in the same category as double glazing and used car salesmen (no offense to any DG of Car Salesman on this forum). However, having looked at the self-managed SIPP options and reading all the books recommended on this forum, I decided I don't have the time to invest in a long learning curve.

If you are seeing an IFA that is on par with one of those categories, you are seeing the wrong person! I couldn't imagine being 'salesy' with my clients - it's all about helping them & doing things in their best interests, not over-selling for the sake of it.

HappyHarry

segovia wrote: »

I have to confess to being very much Anti-IFA, and bracketing them in the same category as double glazing and used car salesmen (no offense to any DG of Car Salesman on this forum). However, having looked at the self-managed SIPP options and reading all the books recommended on this forum, I decided I don't have the time to invest in a long learning curve.

Sometimes I really consider my time wasted posting in here. 😕

segovia

segovia wrote: »

Talbot and Muir SIPP with Rathbones MPS Fund

Initial charge is appx .75%

0.75% of the fund value is less than 1-3%

Yes, there is another option being proposed by the IFA