Fees - Financial Advisors

AnotherJoe

Monevator. 

The Escape Artist. (Look for Honey I fired my financial advisor in there)

Albermarle

Regular reading of this forum could be useful . Also https://www.moneysavingexpert.com/savings/cheap-sipps/

Marcon

BritishInvestor said:

fred246 said:

I would recommend getting loads more 'free quotes' from IFAs and then seeing if you could play them off against each other.. You should be able to half those fees.

Would you really want to work with an IFA that provided a discount? Doesn't that imply they were charging too much in the first place?

If you're buying or selling a property you'd probably shop around for quote to do the conveyancing, and pick your adviser based on a combination of factors which would almost certainly include price. Ditto other service providers. Most professional firms are keen to expand their client base and will, in many cases, be willing to reduce fees within reason if they know the opposition are undercutting them. What's different/so special about an IFA being similarly commercially aware - surely that's exactly what you're looking for? 

Albermarle

Marcon said:

BritishInvestor said:

fred246 said:

I would recommend getting loads more 'free quotes' from IFAs and then seeing if you could play them off against each other.. You should be able to half those fees.

Would you really want to work with an IFA that provided a discount? Doesn't that imply they were charging too much in the first place?

If you're buying or selling a property you'd probably shop around for quote to do the conveyancing, and pick your adviser based on a combination of factors which would almost certainly include price. Ditto other service providers. Most professional firms are keen to expand their client base and will, in many cases, be willing to reduce fees within reason if they know the opposition are undercutting them. What's different/so special about an IFA being similarly commercially aware - surely that's exactly what you're looking for? 

I agree, in any business asking/offering a discount etc is normal . It does not mean the service will be inferior .
Obviously if the discount was ridiculously high then it might make you think again about want was on offer, 

LCS8079

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k. I am 40 and these fees seem exorbitant. What are my options? I have no idea what to do with it. Its such a life changing amount I don't want to make a mistake. Please any advice would be appreciated, even if its to tell me that is a normal fee. Its with SJP but will to transfer it with no penalty if there is a better solution. Thanks. 

[Deleted User]

LCS8079 said:

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k. I am 40 and these fees seem exorbitant. What are my options? I have no idea what to do with it. Its such a life changing amount I don't want to make a mistake. Please any advice would be appreciated, even if its to tell me that is a normal fee. Its with SJP but will to transfer it with no penalty if there is a better solution. Thanks. 

Your IFA is asking for almost £600 a week through the first year. Or roughly the first £1000 of your weekly wage...

Linton

LCS8079 said:

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k. I am 40 and these fees seem exorbitant. What are my options? I have no idea what to do with it. Its such a life changing amount I don't want to make a mistake. Please any advice would be appreciated, even if its to tell me that is a normal fee. Its with SJP but will to transfer it with no penalty if there is a better solution. Thanks. 

SJP are very expensive and they are not "Independent" - they promote their own products.  If you went to a local high street IFA the fees could well be less than half SJPs.   I suggest you contact say 3 and arrange an initial no cost meeting with each to discuss what they could do and the likely costs.   Then chose the one you feel happiest working with.

bowlhead99

LCS8079 said:

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k. I am 40 and these fees seem exorbitant. What are my options? I have no idea what to do with it. Its such a life changing amount I don't want to make a mistake. Please any advice would be appreciated, even if its to tell me that is a normal fee. Its with SJP but will to transfer it with no penalty if there is a better solution. Thanks. 

No, it's not a normal fee - SJP are known for being very expensive; and SJP 'partners' will always push you into using their own products which SJP pay them commission and bonuses to do, so are not Independent Financial Advisors (IFAs), just FAs. 

 You should try three proper IFAs for free introductory meetings and indicative quotes, just like if you were getting some work done on your house.

garmeg

LCS8079 said:

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k

This springs to mind ... https://media.giphy.com/media/hvq8ONQhQ1XLq/giphy.gif

barnstar2077

LCS8079 said:

I have just inherited a pension pot of £400k the ifa I have spoken to wants £20k in fees and an annual fee of £9.5k. I am 40 and these fees seem exorbitant. What are my options? I have no idea what to do with it. Its such a life changing amount I don't want to make a mistake. Please any advice would be appreciated, even if its to tell me that is a normal fee. Its with SJP but will to transfer it with no penalty if there is a better solution. Thanks. 

I recommend you watch this video about SJP and how much their costs will cost you, then do what Linton suggested and talk to a few local IFAs:

https://www.youtube.com/watch?v=F-UP-XDUPWM