Pensions. Is an IFA really worth it?

t8769

I have a simple savings requirement, not a huge amount of money to invest.
Just need a pension, and to invest other finds in a mix of high, med and low risk.
Could I do this myself  or is it worth paying an IFA?
Would they get higher returns to make their fees worthwhile?
Nothing complicated about my requriements.

Thanks

BritishInvestor

t8769 said:

I have a simple savings requirement, not a huge amount of money to invest.
Just need a pension, and to invest other finds in a mix of high, med and low risk.
Could I do this myself  or is it worth paying an IFA?
Would they get higher returns to make their fees worthwhile?
Nothing complicated about my requriements.

Thanks

I would consider reading around the subject. Lots of good books out there and what you learn will stand you in good stead whether you DIY or take advice.
An IFA, nor anyone else (despite what you may hear) will not generate you market-beating returns.

AlanP_2

You can DIY using an online platform like Fidelity, AJ Bell, Vanguard, II, Hargreaves Lansdown etc.

You choose the investments to hold in the pension wrapper. Typically, costs will be lower than if an IFA is used.

An IFA  is not aiming to get higher returns they are aiming to advise you on suitable options tailored to your personal / family circumstances, aims & objectives etc. Once they have an understanding of that they will reccomend investments they believe will be a good match and manage the process for you. If you pay for ongoing support there will be regular reviews and probably adjustments as your life progresses and the worls economy goes through its cycle.

Prism

Why do you want funds of high, med and low risk? Just pick a single fund at the risk level you want.
An IFA would not be trying to get higher returns than you could yourself as long as you do it correctly yourself. That not their job.

Albermarle

You can DIY using an online platform like Fidelity, AJ Bell, Vanguard, II, Hargreaves Lansdown etc.

Forthe more inexperienced investor it can also be worth looking at Pension Bee, Nutmeg, Peoples pension etc .

Or a traditional personal pension provider like Aviva or Standard Life 

Overall a little more expensive but easier to operate .

[Deleted User]

..........No.......

dunstonh

Could I do this myself  or is it worth paying an IFA?

Can you install a boiler or is it worth paying for someone to do it?

Can you do your own accounts or is it worth paying an accountant?

Can you lay your own patio or is worth getting a builder?

Basically, your question is like any job where the option is to either DIY or use a professional.

If you can DIY well, you can save money by going DIY.  If you DIY badly then it can cost you more than using a professional.

Would they get higher returns to make their fees worthwhile?

Dont assume the fees are higher than many DIY options.  Again, it comes down to how you do your DIY.  A lot of DIY options are twice the cost of an IFA doing it.  An IFA has no influence on the investment returns of the funds that are selected.  However, they do make sure the funds you have are suitable for you.   

[Deleted User]

dunstonh said:  An IFA has no influence on the investment returns of the funds that are selected.  However, they do make sure the funds you have are suitable for you.   

For which read, the IFA has no responsibility for your investment returns. 
You can pay for advice but the bottom line of a Self Invested Personal Pension is, you bear the risk. 
 

BritishInvestor

ZingPowZing said:

dunstonh said:  An IFA has no influence on the investment returns of the funds that are selected.  However, they do make sure the funds you have are suitable for you.   

For which read, the IFA has no responsibility for your investment returns. 
You can pay for advice but the bottom line of a Self Invested Personal Pension is, you bear the risk. 
 

Risk of what?

tacpot12

LosingBritishInvestor said:

ZingPowZing said:

dunstonh said:  An IFA has no influence on the investment returns of the funds that are selected.  However, they do make sure the funds you have are suitable for you.   

For which read, the IFA has no responsibility for your investment returns. 
You can pay for advice but the bottom line of a Self Invested Personal Pension is, you bear the risk. 
 

Risk of what?

Losing money.

[Deleted User]

.....Yes.....
So, for me, the boiler analogy doesn't really stand up. Because the financial services industry "fitter" offers no warranty and takes no responsibility for his workmanship, more to the contrary:- if the boiler should break down or explode, it would be the fault of the customer whose specifications were followed.