MSE NEWSFLASH 19/1MORE THAN 29,800 MONEYSAVERS HAVE NOW ENROLLED IN THE ACADEMONEY THROUGH OUR PARTNERSHIP WITH THE OPEN UNIVERSITY
COLD WEATHER PAYMENTS TRIGGERED - CAN YOU GET £25 TOWARDS YOUR ENERGY BILLS?
MARTIN LEWIS WARNS HSBC, FIRST DIRECT AND M&S CUSTOMERS AFTER MAN NEARLY CHUCKED AWAY UNEXPECTED CHEQUE
IFA or DIY - any thoughts appreciated
So I think I have a pretty fundamental decision to make. Do I manage my own SIPP or get an IFA involved?
I've got £350k in an HL SIPP at the mo (I'm 46). I started using up what was left of my annual allowances from the previous 3 years a few years ago, so a fair bit has gone in recently. This is the last year of that, so from 21/22 I'll put the max £40k a year in (for the next few years at any rate, then I think my earnings will drop.. off a cliff..)
What I've been doing with that influx of money will probably make some of you scream - I've just looked at what I had and thought 'oh I should get a bit more global stuff', or 'maybe a bit more small company stuff'; - all funds, no plan.
I showed it an IFA who I know (old friend of a family friend) - he said my approach had "certainly created diversification, but not in the right sectors".
He's not taken on new clients for years, but has said he'll take this on. His suggestion is a split between 6 funds, and a move from HL to FundsNetwork. He also noted that I could probably get these funds via my current platform, HL, and it might be cheaper. And he's right (though some of the funds aren't available on HL).
Ignoring the fund specific fees I'm paying ~0.4% as a platform fee to HL. His advisory fee would be 0.5% and the Funds Network platform fee would be 0.2%. So on the face of it the sensible thing to do is move across to Fidelity (Funds Network) at their 0.2% platform fee, say thanks but no thanks to him, and replicate the fund split he's suggested. (Leaving me, fees-wise, down from ~0.4% to 0.2% and having dodged the 0.7% from FundsNetwork + the advisory fee)
I really don't think he's that bothered whether he gets my pension or not - not that that should play a part in what I do of course. So I could move everything across to Fidelity, and replicate the fund split he suggested, but of course it'll need reviewing. I've got a brain, am happy in Excel and with numbers generally, understand what shares, funds, bonds, & gilts are, and - if I've got a sense of what shape my pension should have - I believe I can keep it on track. (you may disagree)
If I do go down the DIY route, how can I get up to speed quickly? Guessing the answer isn't the Dummies Guide to Investing, but is there a good starting point for me?
Any constructive thoughts would be genuinely appreciated (including suggestions that I just pay the professional - I can cope with 'robust feedback'!)