New ISA -Wealthify / Nutmeg? Or something else?

Apricota

Albermarle said:

 It’s 0.3% platform, 0.3% fund charge, 0.34% portfolio manager fee and 1% ongoing advisor charge. This is for my SIPP and ISA…..it’s worse than I thought. 

If you want to use an IFA , then charges will almost always be higher , and the reward difficult to quantify .
The problem you have with the current charges is that 1% for the advisor is high , especially as they have delegated a lot of the work to a Portfolio manager . So you are paying double . Even 1 % itself is on the high side unless your portfolio is not that large .
If you said platform fee 0.3% - fund fee 0.3% - IFA 0.75 % and no portfolio manager it looks better .
Probably will not help to say that some DIY investors on this forum are probably paying 0.2% all in , although that would not be typical .

Now I’m aware it’s high I need to change. I can remove the IFA as they should have been acting better ref changes and responsiveness or renegotiate. However thinking full removal is likely for the best. I can put the previous fees behind me, no point dwelling but I would be a fool not to do something now.

I appreciate now with your flagging, and others that the overall fees are high. I can do better. Not certain I’m that savvy to do it DIY fully. But there are other SIPP and ISA providers.

the Vanguard is interesting and would enable both.

the other option is to set up new SIPP and new ISA with them and leave the current as is but without the IFA. And then I would only pay into the new ones.

Speedbird676

Apricota said:

Albermarle said:

 It’s 0.3% platform, 0.3% fund charge, 0.34% portfolio manager fee and 1% ongoing advisor charge. This is for my SIPP and ISA…..it’s worse than I thought. 

If you want to use an IFA , then charges will almost always be higher , and the reward difficult to quantify .
The problem you have with the current charges is that 1% for the advisor is high , especially as they have delegated a lot of the work to a Portfolio manager . So you are paying double . Even 1 % itself is on the high side unless your portfolio is not that large .
If you said platform fee 0.3% - fund fee 0.3% - IFA 0.75 % and no portfolio manager it looks better .
Probably will not help to say that some DIY investors on this forum are probably paying 0.2% all in , although that would not be typical .

Now I’m aware it’s high I need to change. I can remove the IFA as they should have been acting better ref changes and responsiveness or renegotiate. However thinking full removal is likely for the best. I can put the previous fees behind me, no point dwelling but I would be a fool not to do something now.

I appreciate now with your flagging, and others that the overall fees are high. I can do better. Not certain I’m that savvy to do it DIY fully. But there are other SIPP and ISA providers.

the Vanguard is interesting and would enable both.

the other option is to set up new SIPP and new ISA with them and leave the current as is but without the IFA. And then I would only pay into the new ones.

Whilst DIY might sound scary, if you went with something like Vanguard Lifestrategy it's not really that different to going with Nutmeg, which was one of your original considerations.

I was new to this a couple of years ago and was also considering Nutmeg or an IFA (who was also charging 1% annual fee) until I came here for advice. I now have a SIPP invested in a Vanguard Lifestrategy fund and an ISA invested in HSBC Global Strategy, paying about 0.33% overall.

ColdIron

It might be worth posting what your SIPP and ISA are invested in to give an idea of the complexity (or otherwise) and what you would need to replace. If it's not much more complicated than a couple of multi asset funds that's easily done by yourself

Albermarle

the Vanguard is interesting and would enable both.
the other option is to set up new SIPP and new ISA with them and leave the current as is but without the IFA. And then I would only pay into the new ones.

Just for clarity as it often confuses people.

Vanguard offer investment funds and they also offer an investment platform ( for SIPP, ISA etc ) 

The two things are separate activities, but because they bundle them together this sometimes gets forgotten.

You can buy Vanguard investment funds on other investment platforms ( same price ) but you can not buy non Vanguard investments ( such as the HSBC Global Strategy fund mentioned above ) on the Vanguard platform .

Apricota

ColdIron said:

It might be worth posting what your SIPP and ISA are invested in to give an idea of the complexity (or otherwise) and what you would need to replace. If it's not much more complicated than a couple of multi asset funds that's easily done by yourself

Hello,

These are the investments:

ISA

SIPP

Which have been doing ok, I think. So would be happy to carry on with this type of split.

Apricota

Albermarle said:

the Vanguard is interesting and would enable both.
the other option is to set up new SIPP and new ISA with them and leave the current as is but without the IFA. And then I would only pay into the new ones.

Just for clarity as it often confuses people.

Vanguard offer investment funds and they also offer an investment platform ( for SIPP, ISA etc ) 

The two things are separate activities, but because they bundle them together this sometimes gets forgotten.

You can buy Vanguard investment funds on other investment platforms ( same price ) but you can not buy non Vanguard investments ( such as the HSBC Global Strategy fund mentioned above ) on the Vanguard platform .

Thank you for the clarification, as I had misunderstood. A single platform with the ability to cover investment and SIPP would I feel work best.

Speedbird676

Apricota said:

Albermarle said:

the Vanguard is interesting and would enable both.
the other option is to set up new SIPP and new ISA with them and leave the current as is but without the IFA. And then I would only pay into the new ones.

Just for clarity as it often confuses people.

Vanguard offer investment funds and they also offer an investment platform ( for SIPP, ISA etc ) 

The two things are separate activities, but because they bundle them together this sometimes gets forgotten.

You can buy Vanguard investment funds on other investment platforms ( same price ) but you can not buy non Vanguard investments ( such as the HSBC Global Strategy fund mentioned above ) on the Vanguard platform .

Thank you for the clarification, as I had misunderstood. A single platform with the ability to cover investment and SIPP would I feel work best.

Most platforms will let you have General Investment, ISA and SIPP. The difference being:

The Vanguard Platform will let you have both an ISA and a SIPP but within them you can only invest in Vanguard Products. Ie: you couldn't invest in an HSBC product on the Vanguard platform.

A generic Platform (Hargreaves Lansdowne, iWeb, Interactive Investor) will also let you have both an ISA and a SIPP but within them you can invest in Products from a variety of providers, ie: Vanguard, HSBC, Legal & General, etc.

There are pros and cons to different platform with regards to cost. Some charge a % of your investment, often capped at a maximum, whereas others charge a fixed monthly fee. Generally, those with a fixed monthly fee are better if you have larger sums invested whereas those with a % monthly fee are better for smaller investments. You'd need to do a comparison based on your amounts to decide what is best for you.

Albermarle

Apricota said:

ColdIron said:

It might be worth posting what your SIPP and ISA are invested in to give an idea of the complexity (or otherwise) and what you would need to replace. If it's not much more complicated than a couple of multi asset funds that's easily done by yourself

Hello,

These are the investments:

ISA

SIPP

Which have been doing ok, I think. So would be happy to carry on with this type of split.

As a quick reaction it seems there is a big bias to UK equities . The UK stock market is less than 5% of the global market , so many think that is the % of UK equities to have relative to others . On the other hand the US is about 60% of global markets and many feel uncomfortable with such a large US holdings . There are many variations/opinions inbetween but you would normally expect to have a higher  international equities % than a UK %.
Also around one third of the investments are 'specialist' which means nothing . Possibly there to just make the portfolio sound more sophisticated /complicated .