Want to consolidate my pension pots. Is Vanguard a good choice?

Albermarle

Thanks, good to know. How did you find the transfer process? With several pots to move, it would be useful if I could do them together, or does it require separate transfer applications for each one?

I can only presume you will need to request a separate transfer request for each one as you will have to give the pension details in each case .

Just for reference, what would an IFA typically charge for advice on this?
Would they ask for a set fee, or would they want a slice of my pension pot?

Typically they would charge 1 to 2% of the total amount for the initial advice and transfer , although probably they would want to transfer it to a platform that they normally use. ( many platforms are IFA only ) and then charge 0.5% to 1 % ongoing charge .

Or they could do a one off review and advise you of the investment portfolio that you should have on Vanguard and then you set it up yourself . Probably would also charge 1 to 2 % but you might find some iFA's not so keen on this route .

LV_426

Albermarle said:

Thanks, good to know. How did you find the transfer process? With several pots to move, it would be useful if I could do them together, or does it require separate transfer applications for each one?

I can only presume you will need to request a separate transfer request for each one as you will have to give the pension details in each case .

Just for reference, what would an IFA typically charge for advice on this?
Would they ask for a set fee, or would they want a slice of my pension pot?

Typically they would charge 1 to 2% of the total amount for the initial advice and transfer , although probably they would want to transfer it to a platform that they normally use. ( many platforms are IFA only ) and then charge 0.5% to 1 % ongoing charge .

Or they could do a one off review and advise you of the investment portfolio that you should have on Vanguard and then you set it up yourself . Probably would also charge 1 to 2 % but you might find some iFA's not so keen on this route .

I guess that IFA ongoing charge would be in addition to any platform/fund management charges?

Albermarle

ajfielden said:

Albermarle said:

Thanks, good to know. How did you find the transfer process? With several pots to move, it would be useful if I could do them together, or does it require separate transfer applications for each one?

I can only presume you will need to request a separate transfer request for each one as you will have to give the pension details in each case .

Just for reference, what would an IFA typically charge for advice on this?
Would they ask for a set fee, or would they want a slice of my pension pot?

Typically they would charge 1 to 2% of the total amount for the initial advice and transfer , although probably they would want to transfer it to a platform that they normally use. ( many platforms are IFA only ) and then charge 0.5% to 1 % ongoing charge .

Or they could do a one off review and advise you of the investment portfolio that you should have on Vanguard and then you set it up yourself . Probably would also charge 1 to 2 % but you might find some iFA's not so keen on this route .

I guess that IFA ongoing charge would be in addition to any platform/fund management charges?

Yes of course . 

jamesd

bostonerimus said:

The one small issue that is mentioned is that you can only buy Vanguard funds. IMO this is not a problem as you have more than enough choice within Vanguard to build a great portfolio and you are not missing out by sticking with Vanguard funds. I use Vanguard in the USA and even though I could use their brokerage to buy anything I stick with Vanguard funds because there's plenty of choice and that way I have zero platform or transaction costs.

It is worth considering that the only active or passive funds offered are from Vanguard and it's not even their whole range. That does constrain people away from having the freedom to choose the best performers, whether measured solely on costs and tracking error or on overall performance.

This doesn't necessarily mean not using Vanguard's platform, for it's possible to use more than one platform if that's beneficial, for example for regular purchasing at a percentage based charger like Vanguard and periodic transfers to a fixed charge platform..

But in this case, it's charging is not very competitive compared to fixed charge platforms, so it doesn't look like the best fit even where only Vanguard funds are wanted, since the same funds and more ae available elsewhere for lower cost.

jamesd

ajfielden said:

Just for reference, what would an IFA typically charge for advice on this?
Would they ask for a set fee, or would they want a slice of my pension pot?

IFA charges depend on the region - typically more costly in the SE - and firm as well as the advice desired. With the value you have you should be able to do a good deal lower than the 1-2% mentioned and do have the option of paying a fixed fee rather than a percentage.

Ongoing charges similarly vary and can be done as a regular annual payment or periodic one-off advice as you see the need. Again, you're a person with quite a high value pot so would not be subject to the higher end of the percentage fee range if you did more than a minimal amount of shipping around.

bostonerimus

jamesd said:

bostonerimus said:

The one small issue that is mentioned is that you can only buy Vanguard funds. IMO this is not a problem as you have more than enough choice within Vanguard to build a great portfolio and you are not missing out by sticking with Vanguard funds. I use Vanguard in the USA and even though I could use their brokerage to buy anything I stick with Vanguard funds because there's plenty of choice and that way I have zero platform or transaction costs.

It is worth considering that the only active or passive funds offered are from Vanguard and it's not even their whole range. That does constrain people away from having the freedom to choose the best performers, whether measured solely on costs and tracking error or on overall performance.

This doesn't necessarily mean not using Vanguard's platform, for it's possible to use more than one platform if that's beneficial, for example for regular purchasing at a percentage based charger like Vanguard and periodic transfers to a fixed charge platform..

But in this case, it's charging is not very competitive compared to fixed charge platforms, so it doesn't look like the best fit even where only Vanguard funds are wanted, since the same funds and more ae available elsewhere for lower cost.

"Best" is a very fuzzy adjective. There's plenty of choice on the UK Vanguard platform for the retail investor. The fetish for chasing the "best portfolio" is like trying to catch a unicorn. I do agree that platform costs are something to consider and if Vanguard isn't competitive then go elsewhere.

LV_426

bostonerimus said:

jamesd said:

bostonerimus said:

The one small issue that is mentioned is that you can only buy Vanguard funds. IMO this is not a problem as you have more than enough choice within Vanguard to build a great portfolio and you are not missing out by sticking with Vanguard funds. I use Vanguard in the USA and even though I could use their brokerage to buy anything I stick with Vanguard funds because there's plenty of choice and that way I have zero platform or transaction costs.

It is worth considering that the only active or passive funds offered are from Vanguard and it's not even their whole range. That does constrain people away from having the freedom to choose the best performers, whether measured solely on costs and tracking error or on overall performance.

This doesn't necessarily mean not using Vanguard's platform, for it's possible to use more than one platform if that's beneficial, for example for regular purchasing at a percentage based charger like Vanguard and periodic transfers to a fixed charge platform..

But in this case, it's charging is not very competitive compared to fixed charge platforms, so it doesn't look like the best fit even where only Vanguard funds are wanted, since the same funds and more ae available elsewhere for lower cost.

"Best" is a very fuzzy adjective. There's plenty of choice on the UK Vanguard platform for the retail investor. The fetish for chasing the "best portfolio" is like trying to catch a unicorn. I do agree that platform costs are something to consider and if Vanguard isn't competitive then go elsewhere.

I'm a relatively unsophisticated investor, so I'm not really inclined to get obsessed with finding the optimal portfolio. As you say, finding something with low charges, and gives me a bit of flexibility in terms of choice, related to risk attitude. Fine with me.

bostonerimus

ajfielden said:

bostonerimus said:

jamesd said:

bostonerimus said:

The one small issue that is mentioned is that you can only buy Vanguard funds. IMO this is not a problem as you have more than enough choice within Vanguard to build a great portfolio and you are not missing out by sticking with Vanguard funds. I use Vanguard in the USA and even though I could use their brokerage to buy anything I stick with Vanguard funds because there's plenty of choice and that way I have zero platform or transaction costs.

It is worth considering that the only active or passive funds offered are from Vanguard and it's not even their whole range. That does constrain people away from having the freedom to choose the best performers, whether measured solely on costs and tracking error or on overall performance.

This doesn't necessarily mean not using Vanguard's platform, for it's possible to use more than one platform if that's beneficial, for example for regular purchasing at a percentage based charger like Vanguard and periodic transfers to a fixed charge platform..

But in this case, it's charging is not very competitive compared to fixed charge platforms, so it doesn't look like the best fit even where only Vanguard funds are wanted, since the same funds and more ae available elsewhere for lower cost.

"Best" is a very fuzzy adjective. There's plenty of choice on the UK Vanguard platform for the retail investor. The fetish for chasing the "best portfolio" is like trying to catch a unicorn. I do agree that platform costs are something to consider and if Vanguard isn't competitive then go elsewhere.

I'm a relatively unsophisticated investor, so I'm not really inclined to get obsessed with finding the optimal portfolio. As you say, finding something with low charges, and gives me a bit of flexibility in terms of choice, related to risk attitude. Fine with me.

That's very sensible...many relatively sophisticated investors do just the same.