Financial Advisor's ongoing advice or just advice at key times

johntin11

I transferred out of a DB scheme approximately 2 years ago. I am paying 1% for ongoing financial adviser servicing fees quarterly, approximately £1800 and product charges of £500,  So approx £2300 a quarter which is £9200 a year of which £7200 is for the financial advice. Plus 1% to Old Mutual Wealth.
I have a meeting once every 6 months, one to one with my financial adviser and that is it. I am continuing to invest in the same Old Mutual Wealth Collective Retirement Account, so nothing has changed. 
I do not intend to touch this pension until 2025, which is in 5 years time.
The amount transferred was  £650000, minus £12000 transfer fee. So it started as £638000, as of today it stands at £676000. In the 2 years my pension has made £38000 after paying fees. In the 2 years I have paid the financial adviser £26400. £12000 for the initial transfer and £14400 for the 2 years it has been going.
So my question is do I/can I cancel the contract for the ongoing financial adviser and just get advice at key moments? Such as when I plan to retire. When I transferred I wasn't given an option it was we will transfer it for you and then provide financial services to you.
I just feel I don't need advise at the moment and to be honest at the meetings I am just asked if anything has changed and am I looking to change anything. I answer no to both questions and I am told we will leave it as it is then.
It just seems to me that I am going to continue to pay at least £7200 a year for the next 5 years before anything has to change, which is a lot of money. I do realise I can go to another financial adviser and ask for their opinion but I feel the answer will be "transfer to me and I will look after you" and then take the money.
If anyone has come across this issue then any advise appreciated. If that advise is continue with what is happening, then at least i will have put my mind at rest. I just want to ask the question and get unbiased answers.
For clarity, I do have additional pensions. A small DB fund and another substantial SIPP with Hargreaves Landsdown which I am self managing. 

 

eskbanker

johntin11 said:

I just feel I don't need advise at the moment 

[...]

For clarity, I do have additional pensions. A small DB fund and another substantial SIPP with Hargreaves Landsdown which I am self managing. 

I think you've answered your own question!

MarkCarnage

You are self managing another portfolio of comparable size. Is there any reason you can't do it for this one? 
Also, perhaps take a view as to whether you need to hold this one in its current contract 'wrapper' You are possibly paying for two layers of 'advice' that you don't need? One to the IFA, and one to OM Wealth. 
There are no certainties to the investment outcomes for either this one or your SIPP. But the fees are certain, and quite high. 

Linton

1%/year sounds very high for ongoing management of a large sum like 676K, 0.5% is more commonly quoted in this forum.  Is your financial advisor an IFA or an FA or some other job title? Are you using a high-end national company or a small local IFA?  The latter would be fine for the amount of money you have.

If you are using an IFA, it does not seem sensible to me to use one for only part of your investments.  The IFA has to consider your financial position as a whole and you may do things within your SIPP that makes what he is recommending for your ex-DB money unnecessary or inappropriate.

If you are self managing your "substantial" SIPP why do you feel you need outside advice?  That is not a rhetorical question.

A couple of problems I see with just taking advice at key moments:

 - the IFA will presumably need a new contract and to reassess your situation each time

 - wont consultation at key moments of neccessity be last minute?  You really need to invest following a long term plan which is reviewed regularly, you dont want isolated major changes.  In a sense there should not be any "key moments" apart from major unexpected disruptive events in your life.

Andrew31

If you feel you arent getting good value for money, then cancel or ask for a reduction.
just as an aside, do you have any LTA protection in place?

johntin11

Thank you all for your responses.
Financial advisor is a Chartered Financial Planner for a regional company. He does ask  me about my other pensions. My substantial sipp is actually £150000 and I am just playing with in different funds, it I am not really managing it. I do not have the knowledge or confidence to control both amounts.
I was just looking to continue to pay approximately £18000 yearly into my SIPP and carry on without the advise for the next 5 years. Then pay for Key advise, listen to the advise then carry on for a period before taking advice and my pension . Once I have a pension surely I don't want to carry on paying for ongoing financial advice? If I live for even 10/20 years, that is a massive amount of money whilst no additional funds are being added.
It also sounds like I need to get his fee down or look elsewhere for lower fees might be a goof option? 

johntin11

just as an aside, do you have any LTA protection in place?

Not at the Moment.

If you feel you arent getting good value for money, then cancel or ask for a reduction.

This is the reason I have posted I need to find out. I couldn't just continue thinking it. Thanks for the questions.

johntin11

It is a minefield and I need to know more. It is easy to just sign the bits of paper that they put in front of you.
Thanks to your responses, I have already found out that I am paying too much and can have the same service for less, if I continue to want/need ongoing advice.

Andrew31

The Fact your adviser has not advised you on LTA would lead me to think he is not that great.  If you feel confident manage yourself, but there are many pitfalls such as the LTA charge, you will probably need help managing that.   Good luck 

johntin11

Andrew31 said:

The Fact your adviser has not advised you on LTA would lead me to think he is not that great.  If you feel confident manage yourself, but there are many pitfalls such as the LTA charge, you will probably need help managing that.   Good luck 

Sorry I misunderstood. He has talked to me about LTA. I thought you asked,  do I have any LTA protection in place?

wjr4

LTA protection might not even be applicable. You need to value your pension @ 05/04/2016 and if they are not above £1million then you cannot apply for Individual Protection 2016 anyway. Fixed Protection 2016 is irrelevant as you want to continue paying in.