Robo vs IFA Managed Stocks & Shares ISA

belfastboy81

Hello,
I've had a Stocks and Shares ISA with the Old Mutual Wealth platform for about 5 years.  This was set up and managed by an IFA until earlier this year when the IFA's company was bought over by a larger firm and they decided that they were no longer interested in my business.  The funds (c.£10k) remain with Old Mutual Wealth but I no longer pay the IFA a management fee (0.75%) however it is up to me to keep an eye on the funds and I'm not confident enough in my knowledge.

I had been looking at a Robo investor option as an alternative to finding a new IFA.  I like the look of Wealthsimple and could get up to £10k managed for free for the first year with no charges for transferring the funds across.  Thereafter the total charges would be in the region of 0.9% and I think with the IFA previously + Old Mutual Wealth platform fees I had been paying around 2% in total.

What do people think?  Should I look to find a new IFA to manage my portfolio?  Or do people recommend Robo investment platforms such as Wealthsimple?

I also have a Collective Retirement Account (Pension) with Old Mutual Wealth and this had also been managed by my IFA (with a very similar portfolio of funds to my Stocks and Shares ISA).  Again, I'm considering what I should do with this.

Thanks in advance!

dunstonh

With £10k, you are not going to find an IFA interested in offering services to you.     Robo guidance (cant really call it advice as its not) is there to pick up the small value stuff where the move to fee basis and increased regulatory requirements make it impossible for an IFA to service low values.    However, robo-advice does nothing that a low cost platform and cheap multi-asset fund would do for you at lower cost.

I also have a Collective Retirement Account (Pension) with Old Mutual Wealth and this had also been managed by my IFA (with a very similar portfolio of funds to my Stocks and Shares ISA).  Again, I'm considering what I should do with this.

If you are on charge basis 1 with OMW then that is a very cheap pension if you use index trackers.  if you are on charge basis 3 then there are lower cost options.

belfastboy81

dunstonh said:

With £10k, you are not going to find an IFA interested in offering services to you.     Robo guidance (cant really call it advice as its not) is there to pick up the small value stuff where the move to fee basis and increased regulatory requirements make it impossible for an IFA to service low values.    However, robo-advice does nothing that a low cost platform and cheap multi-asset fund would do for you at lower cost.

I also have a Collective Retirement Account (Pension) with Old Mutual Wealth and this had also been managed by my IFA (with a very similar portfolio of funds to my Stocks and Shares ISA).  Again, I'm considering what I should do with this.

If you are on charge basis 1 with OMW then that is a very cheap pension if you use index trackers.  if you are on charge basis 3 then there are lower cost options.

I'm on charge basis 3 with OMW.

I'm hoping to make a regular monthly commitment to my Stocks and Shares ISA so hopefully can grow this capital over the coming years.

masonic

The third option is a cheap multi-asset fund. It's not so different than roboinvesting - instead of having an investment platform allocate your money based on your attitude to risk, you buy a fund with an appropriate level of risk and let a fund manager do the same. There are websites that can help you decide the risk level that would be most appropriate, or you can often use the risk questionnaires offered by the robo sites without committing to buy.

AnotherJoe

What masonic said, Option 3, just buy a cheap global index fund at your level of risk. why give away a substantial portion of your growth every year needlessly? Its not like you are asking  them to manage a million quid and deal with tax issues etc.

 

Albermarle

Suggest you put aside a few hours and do some research into basic investing , including reading through threads on this forum.
You are not the first person to ask  similar questions.
https://www.moneyadviceservice.org.uk/en/categories/how-to-invest-money
https://www.moneysavingexpert.com/savings/investment-beginners/?_ga=2.53612712.1079067175.1585992456-416810279.1528033817
https://monevator.com/category/investing/passive-investing-investing/

belfastboy81

Thanks all