How Do I Sack My IFA and go DIY?

Foresty_Forest

A few years ago I employed an IFA to help me start a pension plan.  I didn't know much about pensions at the time, but now I'm a bit more clued up. Everything went into a Aviva. My IFA has recently suggested moving to True Potential, which has given me doubts. Now I'm starting to think that maybe I should start managing my own portfolio. I'm reasonably competent with figures, I complete my self-employment tax return for instance. I’m considered a moderate risk saver and would intend to play it safe. I can certainly work out how much to pay into my pension and ISA. If I decided to, how would I go about breaking with my IFA?

• Is going DIY a good idea, would I actually save any money by doing so?

• Will it cost much if anything to break with my IFA?
• I expect fees from Aviva for DIY, would I save anything?

• Would AVIVA make it easy for me to take over the platform?

• How often would I need to employ an IFA for advice?

dunstonh

May have been better to use one of your existing threads on the subject. Such as this one:
https://forums.moneysavingexpert.com/discussion/6202817/ifa-advises-pension-move-to-true-potential-thoughts-please#latest

If I decided to, how would I go about breaking with my IFA?

Your FA needs to end servicing when you tell them to.

• Is going DIY a good idea, would I actually save any money by doing so?

DIY in financial products is no different to other areas of DIY. If you DIY well, you can save money. If you DIY badly it can cost you more money.   There are some good value DIY options and some very expensive and/or low-quality DIY options.     A lot of people DIY successfully and at lower cost.   A lot of people DIY badly and at higher cost.  

• Will it cost much if anything to break with my IFA?

Probably nothing.

• I expect fees from Aviva for DIY, would I save anything?

The Aviva platform for IFAs is not a DIY platform.  You would really need to move to another platform.

• Would AVIVA make it easy for me to take over the platform?

I doubt they would sell you their platform business

You can end the adviser servicing but Aviva's intermediary platform is not a DIY platform.

• How often would I need to employ an IFA for advice?

If you are going to DIY then you wouldn't.   If you move to transactional basis then it depends on your circumstances.  Do note that using an IFA on a transactional basis will probably mean using basic investments.  That can cost you more.

Albermarle

You could stay with Aviva if you DIY , but you would have to transfer to their platform for retail investors . The availability of different funds would probably be less but still plenty for most people. The fees would probably be a bit more than now.
Or you could transfer away from Aviva altogether.

Foresty_Forest

As an alternative could I employ a different IFA, and for them to keep using the current platform? If I had enough money saved, could I actually attract a better deal?

mark13

I engaged an IFA to manage my pension. I wasn't happy with the returns so moved my pension pot to a DIY platform after talking through the returns with my IFA. IFA's are professionals and realize that it is your money and that you want may want to manage it yourself.

Foresty_Forest

mark13 said:

 moved my pension pot to a DIY platform 

How did that go for you?

mark13

No issues, the IFA did offer some alternatives but decided to go down the DIY route anyway. Transfer was painless and was up and running within 10 days. I have my SIPP with Interactive Investor , they handled the transfer. Was so smooth . In my case I have more flexibility,  I can react to the markets if needed and the bottom line is the value is increasing  rather than stagnating and paying less in IFA and fund platform charges. 

[Deleted User]

In general, an IFA can add value if he is good and the investor is uneducated. In many cases, neither is true. And educating yourself is easy; these days investments should be simple. 

BritishInvestor

Deleted_User said:

In general, an IFA can add value if he is good and the investor is uneducated. In many cases, neither is true. And educating yourself is easy; these days investments should be simple. 

But surely if the IFA is good, investments/investment management is (or should be) a tiny part of the value they add (given that is has been commoditised for at least a decade?)

NottinghamKnight

BritishInvestor said:

Deleted_User said:

In general, an IFA can add value if he is good and the investor is uneducated. In many cases, neither is true. And educating yourself is easy; these days investments should be simple. 

But surely if the IFA is good, investments/investment management is (or should be) a tiny part of the value they add (given that is has been commoditised for at least a decade?)

And the majority of the value for the thousands per year paid is?

BritishInvestor

NottinghamKnight said:

BritishInvestor said:

Deleted_User said:

In general, an IFA can add value if he is good and the investor is uneducated. In many cases, neither is true. And educating yourself is easy; these days investments should be simple. 

But surely if the IFA is good, investments/investment management is (or should be) a tiny part of the value they add (given that is has been commoditised for at least a decade?)

And the majority of the value for the thousands per year paid is?

Probably worth clarifying the type of client. The value add for someone starting an ISA at 30 (can an adviser realistically add value, questionable) is very different to someone with complex needs planning for retirement. 
For those with the time, confidence, knowledge and desire, DIY is an option. For others that are lacking in one or more of these areas paying someone to help might be preferable.
For example, I would estimate 10% of the time/value on a typical retirement planning exercise is spent discussing/implementing investment solutions.