40K yearly Pension - Is it safe to have all your eggs in one basket ?

handful

dunstonh said:

I have a fund with SJP and currently don't pay advisor fees (or get any advice from them) I am obviously liable to pay their EWC if I move out but from what I understand,

Unlike IFAs and most other distribution channels, the SJP pricing builds the adviser charge into the fund AMC.   Whilst many feel this lacks transparency, they are technically allowed to do it as they are a vertically integrated firm (seller,provider and funds are all from the same company).   So, you would not see adviser fees as a separate entry as you would if it was held on a platform via an IFA.

I was advised by a family member who used to work for SJP as a paraplanner that the advisor charges had been switched off  because I specified I didn't want advice from them so presumably my AMC is lower? I previously did have a scheduled "session" with the partner and no longer receive or wish to receive this.  I just checked my latest investor report and there is no mention of any charges at all so like you say, lacks transparency.

[Deleted User]

Anything that calls itself “Wealth Management” is a sign that you should stay away from the organization.  That’s someone trying to appeal to our vanity but not at all how high net worth individuals (over 20M) manage their money. 

Assuming the provider is good, in the unlikely event if something were to go terribly wrong, you will still get your investments back.  The risk is that your money would be stuck for a few months.  So there is some advantage to having access to cash from a different institution.  And, if possible, even from a different country.  Like others have said, its not about investment performance. 

dunstonh

I was advised by a family member who used to work for SJP as a paraplanner that the advisor charges had been switched off  because I specified I didn't want advice from them so presumably my AMC is lower?

If this was post 2013, then you should be seeing a rebate on your transaction statements (probably resulting in an increase of units in the funds)

handful

dunstonh said:

I was advised by a family member who used to work for SJP as a paraplanner that the advisor charges had been switched off  because I specified I didn't want advice from them so presumably my AMC is lower?

If this was post 2013, then you should be seeing a rebate on your transaction statements (probably resulting in an increase of units in the funds)

I will check that out, many thanks.

I am fortunate enough to have bought shares in SJP after the crash last year and have seen gains of >70% since buying so I am able to factor that into the cost of bailing out if I decide to do so! With all the negative press about SJP it's a bit of a surprise the shares have done so well!

dunstonh

With all the negative press about SJP it's a bit of a surprise the shares have done so well!

In my experience, getting people away from SJP is hard.  They brainwash their customers into thinking they are the best thing since sliced bread.    Those customers encourage their friends and families to use SJP as well and SJP are very successful at doing it.   They position themselves as a premium provider offering a premium service.   It costs a premium as well but that is their model and they do a very good job of it from a business point of view.

An adviser once laughed at me as he only had do 10% of the work I do to earn the same amount.  Or in other words, only have one client instead of the 10 needed by me to earn the same.   From a business point of view he was totally correct.  Even though from an ethical point of view, I think he was morally wrong.   For as long as there are people willing to pay the high fees, there will be those charging high fees.

RichyB71

handful said:

cfw1994 said:

RichyB71 said:

Albermarle said:

Although all the comments about SJP are valid, you need to be fully aware that if you move to a low cost SIPP , you will not get any financial advice at all from them . Just calling Vanguard and they tell you its a great platform does not constitute advice 

I agree, however I looked at the charges today for that combination of product and advice and the return was a 25% increase over the last five years a 4.75% fee for the initial transfer and 2% each year in charges. The returns have been average at best in comparison with how other products from providers such as Vanguard have performed (  between 54% and 62% ) ...I can't ignore high charges and a mediocre performance even if I have a nice bloke to chat too twice a year

I have a pal who resolutely feels having a nice lunch and chat with his SJP advisor is reason enough to stick with them!

Their fees are outrageous (plenty of articles on that if you Goggle/DuckDuckGo that!)

The exit fees can be eye watering too, & any lock-in (often 6 years) starts fresh with each monthly payment: hence@atush’s wise words: freeze payments & seek advise from an Independent FA (or DIY, if you now feel confident enough).

I have a fund with SJP and currently don't pay advisor fees (or get any advice from them) I am obviously liable to pay their EWC if I move out but from what I understand, the EWC is applicable to each contribution you make on a sliding scale over 6 years. So e.g. if I invested a lump sum originally 6 years ago and an additional contribution every month since, the original sum could now be moved without penalty, contributions from Y1 would be 1%, Y2 3% and so on up to a contribution made this year would be 6%. Am I correct in this assumption because that's what my understanding is from what they told me over the phone? TIA

 

That'a a shocker.....most of my contributions have been in the last 18 months. ( Full quota last year alone ) Looks like I could be taking a huge hit  

RichyB71

It shows how complicated SJP charges are. My advisor has had to request historical data from Head Office and it takes 10 working days to come back...Obviously they need to start up the Enigma machine to crunch the numbers. 

chiram2015

FWIW, not really spreading the risk but my pension plan is with A J Bell using various funds incl Vanguard but my other half is with Transact through his IFA.  It all seems to work well combined although the IFA sticks his nose up with me using Retireeasy and goes on and on about his own planning tools! I suppose we are lucky in these times to have such a luxury problem.

MoJoeGo

I have an older relative that's with them too, and I think after a while, the ego has been massaged to the point where they feel there can't be anything better. Or that it's "reassuringly expensive". Or maybe it's just Stockholm syndrome...

With apologies for the misquote... SJP is the opium of the pensioners 

Albermarle

MoJoeGo said:

I have an older relative that's with them too, and I think after a while, the ego has been massaged to the point where they feel there can't be anything better. Or that it's "reassuringly expensive". Or maybe it's just Stockholm syndrome...

With apologies for the misquote... SJP is the opium of the pensioners 

Same with one my relatives , they think the sun shines out of their SJP advisors rear end .