simple pension review

mcn99

Hi,

I'm quickly approaching 55 and am starting to look at retiring in next 2 years, was initially thinking of working to 60, but I don’t think I will get there or want to keep working past 57. So the wife wants me to get some advice, in the last few years I have been transferring 6 old DC pensions into my SIPP in preparation for early retirement

At moment I’m doing a DIY pension and I am fairly sure on how I want to drawdown.

We will be debt free this year but will have a big expense next year but once that is done we can quite comfortably live off the wife’s wage.

Only potential risk is the wife losing her job. I should add wife has a decent pension DC pot her self.

So I'm struggling to find an IFA that will just spend perhaps a day with me to sit through my plans and current portfolio and just give me some general advice. I don’t want it managed and I certainly don’t want to pay a % of my pot just for a basic review.

Both the IFAs I had a quick chat on phone were not interested to take work for a flat fee and wanted a 2% fee for a full review.

Am I being unrealistic, just to ask for advice for a fixed fee ? All I’m looking for is someone to look at my plans and point out anything glaringly wrong.

I know the hour rate they charge, and this isn’t an issue, I’m prepared to pay. If I like the advice, I would probably use the IFA again in the future.

Thanks in advance

TVAS

2% of what we need the facts.
No you are not being unrealistic to ask for advice for a fixed fee this is what IFAs should be doing instead they want to add a fee for an initial review and then they want to add an on going charge (OAC) to your plan so they can sell their firm and get a good price as they can show income generated from funds under management. 

mcn99

2% of my sipp portfolio was what they were asking, which is a lot. I'm not intrested in anyone managing it or transfer it.

Like i said i just want to have a simple session with an IFA, then pay for their time. But struggled to convey that across to them over phone.

dunstonh

So I'm struggling to find an IFA that will just spend perhaps a day with me to sit through my plans and current portfolio and just give me some general advice. I don’t want it managed and I certainly don’t want to pay a % of my pot just for a basic review.

The problem is that the regulatory system has turned it into an all or nothing position.    You effectively have generic guidance. But it cannot even hint towards what may be the best methods, providers or investments or strategy. Just factual information only.  Or full advice.  If a review is carried out, it needs the full process.  

Also, you don't want to follow the advice.  So, that would make you an insistent client.   And insistent clients are expensive for IFAs as PI insurers are wary of them (and the FOS upheld another insistent client case last month).

Am I being unrealistic, just to ask for advice for a fixed fee ? All I’m looking for is someone to look at my plans and point out anything glaringly wrong.

2% is a fixed fee. 2% of £xxx = fixed monetary amount.   And a fixed fee could be higher or lower than 2% if turned into percentages.  All these variations result in a set monetary amount.   What you are really saying is that you don't like the monetary amount they are quoting.

In the past, what you want would be pretty easily achievable at relatively low cost.   Today, it requires too much work and there isn't much of a business case for it.   You will find someone but most experienced IFAs have more work than they can handle and have the luxury of pricing cases they don't really want to do in a way that acts as a passive blocker.

mcn99

ok looks like i'm on my own then, and have to take responsibilty for any mistakes i make. I am close to 700k in pot, so a fixed fee is what im after , if i take the IFA advice or i ignore it, still my responsibility. I'm not intrested in moving or buying anything, just some advice. It cant be that difficult can it ?

Linton

mcn99 said:

ok looks like i'm on my own then, and have to take responsibilty for any mistakes i make. I am close to 700k in pot, so a fixed fee is what im after , if i take the IFA advice or i ignore it, still my responsibility. I'm not intrested in moving or buying anything, just some advice. It cant be that difficult can it ?

Unfortunately if an IFA gives you advice he/she is liable for the results.  There was a case a few years ago when an IFA advised against something (a DB pension transfer), the client did it anyway with poor results and claimed compensation from the IFA.  This was awarded on the grounds that the advice against doing it was not strong enough.  Under these circumstances it is obvious that IFAs have to be extremely careful.

notyourrealname

Plenty of knowledgeable people on here (not including myself in that in any way, just to be clear) so if you are happy to share details of your plans, I'm sure several of said knowledgeable people would be happy to advise.

bostonerimus

Why not just ask your questions here. You'll get a lot of good comments that might help. 

dunstonh

There was a case a few years ago when an IFA advised against something (a DB pension transfer),

And another one last month.   It is getting to the point where compliance companies are suggesting that firms don't bother doing any insistent client business. 

Marcon

bostonerimus said:

Why not just ask your questions here. You'll get a lot of good comments that might help. 

OP will get plenty of comments, but given they will be based on minimal information, it'll be complete pot luck as to whether they are any use.

OP has already said it's his wife who thinks he needs advice, so might be worthwhile the pair of them comparing notes on what she believes that advice will achieve and whether it's worth the cost being quoted. So often 'advice' isn't actually necessary - it's information that is required.

mcn99 said:

 in the last few years I have been transferring 6 old DC pensions into my SIPP in preparation for early retirement

At moment I’m doing a DIY pension and I am fairly sure on how I want to drawdown.

So I'm struggling to find an IFA that will just spend perhaps a day with me to sit through my plans and current portfolio and just give me some general advice. I don’t want it managed and I certainly don’t want to pay a % of my pot just for a basic review.

You say you want 'some general advice' but even that doesn't mean much. If you've already transferred 6 old DC pensions into your SIPP, why is the IFA supposed to 'sift through your plans' if you now only have one (your SIPP)? What exactly do you want 'advice' on?

MallyGirl

notyourrealname said:

Plenty of knowledgeable people on here (not including myself in that in any way, just to be clear) so if you are happy to share details of your plans, I'm sure several of said knowledgeable people would be happy to advise. comment on

Advice is regulated and this is not the place for it. Anyone can comment but the OP will have to do their own research from the comments.