Financial advisor

CBJardine

Should I retain a financial advisor after he set up my pension. I have 4 years to go and my pension is in a low risk account. He said by paying monthly it would be cheaper than doing an annual review as I can contact him throughout the year? 

tacpot12

I would suggest that it is not worth retaining an IFA for four years. You will want to consult them in about a year before you are ready to retire, to make sure everything is ready for your retirement and any changes to your investments can be planned. After that, the frequency with which you will need an IFA will depend on how you are managing your investments in retirement. 

dunstonh

Should I retain a financial advisor after he set up my pension.

IFA or FA?   FAs are more transactional in nature.  IFAs are more ongoing servicing.

He said by paying monthly it would be cheaper than doing an annual review as I can contact him throughout the year? 

If you use and value the contact then yes.  if not then no.   If it is an IFA and they are controlling the investment strategy, that will end if you cease ongoing servicing.  You will need to do it in future or possibly adjust the investments to ones that do it within the investment themselves

IvanOpinion

I agree with tacpot - especially if you are in low risk investments.  What sort of investment value are we talking about and how much is the FA/IFA looking as a fee.

Albermarle

Any question about financial advisors on this forum usually generates some debate about the pros and cons of having one , so you will not get a definitive answer to your question . Especially so as the detail supplied is a bit sparse.

Thrugelmir

CBJardine said:

Should I retain a financial advisor after he set up my pension.

Are you comfortable with making changes to the portfolio in the future? 

barnstar2077

I would spend a bit of time over the next few years reading up on investments, drawdown etc and then decide what to do before you retire.  If you are able to manage it yourself you will save money, on the other hand there is no shame in not doing so.  You may as well try and get your head around it first.  Even if you do decide to go with an IFA in the end, you will still have a greater understanding from doing your homework first.  A win win.

TVAS

How do you think we can help if you do not provide the facts? You should have told us the ongoing advice fee (OAC). The answer is no if you want to remain in low risk funds. You can write to the provider and ask them to remove the OAC from your plan.

CBJardine

Thank you everyone for your advice. I wasn't sure how much detail you would require but your answers have helped me with my decision. Much appreciated. CBJardine said:

Should I retain a financial advisor after he set up my pension. I have 4 years to go and my pension is in a low risk account. He said by paying monthly it would be cheaper than doing an annual review as I can contact him throughout the year?