re Robo advisor platform or financial advisor

newhorizon1

Hi
I am looking at putting £10k into a SIPPS and then paying £100 to £200 monthly in a sipps that allows flexible payments over the next 5-10 -15 years. I am a low to medium risk investor. I have 140k to buy a house and will have 10-11k in emergency savings. I have 2 work pensions as an ex employee which i am keeping ticking over and reviewed my state pension. I am in rented accommodation at the moment. 

I am researching into types of SIPPS and it is not easy understanding the jargon. 

What is a drawdown or annuity  ?

What is passive and active income?

I am looking into robo advisors- has anyone had any experience of opening up a SIP by a robo advisor OR is it better I get some financial advise overall for my lifestyle. I am due to look for new work and pay into an auto enrolment scheme. I have the same job role but had 5 different employers after being contracted out. 

The financial advise will charge me 3 % of the 10k I invest into a pension. 0.15 to 1% management fee to run the SIPP and annual advise charges. £300 is a LOT of money to me. 

Has anyone had good experiences of the robo advisor platform? I am willing to pay some fees but wanting to keep costs low for set up ,management fees and low costs to switch pension funds if they are not performing well

newhorizon1

My financial adviser is offering restricted advise and works independently. 

dunstonh

What is a drawdown or annuity  ?

Different methods of drawing income in retirement.  Each of these also have different options within them.   Unless you are at retirement or near to it, its probably not worth worrying much about this for now.

What is passive and active income?

Passive and active are management styles (income or growth during the pre-retirement stage).  Passive means investing in index trackers.  Active means investing in managed funds where active decisions are made on what shares to hold or how much.   There is also hybrid where a portfolio will hold a combination of active and passive.

I am looking into robo advisors- has anyone had any experience of opening up a SIP by a robo advisor OR is it better I get some financial advise overall for my lifestyle

Hardly any robo-providers operate a SIPP.   

The financial advise will charge me 3 % of the 10k I invest into a pension. 0.15 to 1% management fee to run the SIPP and annual advise charges. £300 is a LOT of money to me. 

£300 is peanuts for advice.   I would actually expect the total charge (including regular) to be in the £500 to £1000 range.
Your amounts are low and not really suitable for an advised service.   Although that said, even with a £500-£1000 charge, that could be cheaper than many robos in the long run.

0.15% pa in total is dirt cheap and unrealistic for any method of distribution. A transactional advice case would see you around 0.3x% to 0.5x% range.   You don't have enough money to justify an ongoing service and in reality, don't need it.

Has anyone had good experiences of the robo advisor platform? 

Must robos do not operate a platform.  They offer their in-house product with in-house portfolios.

I am willing to pay some fees but wanting to keep costs low for set up ,management fees and low costs to switch pension funds if they are not performing well

The ability to switch funds is more typical of SIPPs, personal pensions and stakeholder pensions.   It's not a typical option with Robo providers.     

Whilst a robo may well be the most suitable for your size of contribution, your wish to be able to switch funds eliminates most robos.    Do you have the knowledge to be able to identify poor performance and understand why there has been poor performance? (most do not).   if you don't, then the need to be able to switch funds would not be necessary.   If the robo is using underlying passive funds then you wont be getting underperformance or overperformance.  You will get what the market gives you.   

Albermarle

It is surprising that you even got an advisor to quote for this amount of funds .
To get started probably a robo advisor is not a bad idea . Charges of around 0.7% are not the cheapest, but are not going to have much impact until your fund gets bigger . 
When the fund is bigger and hopefully you have learnt more about investing , you can be confident to move your SIPP to another provider ( it is easy and free ) .
As said above forget about keep switching funds . Just let the Robo advisor guide you to the right one and stay with that .