IFA/DIY pension conundrum

mark13

If you are are happy and confident to do a bit of learning, I would merge the 2 pensions into a SIPP with II .  Have you had your free chat with Pensionwise ?  I think you need to work out how much you need, whether you need a lump sum, defer the pension or take it immediately. Was the IFA fee to manage your investment or just to give one-off advice ? 

JohnWinder

Prism said:

I was not referring solely to fund fees.

Understood, and sorry if my note was too brief to make that clear. I don't know any research examining the association between fees and returns other than that for funds.

And yes, we should evaluate the research without accepting conclusions at face value, particularly when a biased player is involved. Kinnel gets plenty of mileage out of this research, so there are plenty of articles on it: '..how important we think the cost of investing is. The expense ratio is the most proven predictor of future fund returns – and our data agrees. That’s also what academics, fund companies, and, of course, Jack Bogle, find when they run the data......To begin any test of predictive power, we use historical data so that we are using data investors would have had access to at the time. That includes funds that no longer exist. In fact, that’s a key part of the story because higher-cost funds are much more likely to fail and be merged away. If you do not factor them in, you will see better performance from higher-cost funds than was the reality, as those that survived naturally are more likely to have produced better performance – while so many failures have been culled.'

'For example, in U.S. equity funds, the cheapest quintile had a total-return success rate of 62% compared with 48% for the second-cheapest quintile, then 39% for the middle quintile, 30% for the second-priciest quintile, and 20% for the priciest quintile. So, the cheaper the quintile, the better your chances. All told, cheapest-quintile funds were 3 times as likely to succeed as the priciest quintile.'

https://sg.morningstar.com/sg/news/154499/how-fund-fees-are-the-best-predictor-of-returns.aspx

I'm not the best at finding academic research, but someone will chime in.