Query about financial advisers and set up fees and Aviva products

Tabby026

Thank you. I have a work pension which is a final salary scheme, so that’s all sorted. Many thanks for your help.

dunstonh

Thank you for all your help and advice.  Do you know if the financial adviser 0.5 per cent free is charged monthly or annually?

It is 0.5% per annum but most firms get it as 1/12th monthly.

 Does it depend on the firm.

yes

 I know it comes out of the investment. 

It comes out of the cash account on the platform.

 Are the fund charges worked out monthly or annually

daily.

 I am a risk level 4

That means nothing without context. Some firms use a 0-5 scale.  some use a 1-7 or 1-10 or 1-15 or other.

Tabby026

Thank you for all your help.

Tabby026

Could I ask some more questions please.

The Financial adviser is proposing I have an ISA account and General Investment Account, known as investment wrappers, of which £40,000 of my cash ISA will get transferred in and then this financial year £20,000 added to it and then the next financial year the remaining £10,000 added to the ISA

What happens to the General Investment Account/Investment Portfolio next year, once the other £10,000 will be moved across to the ISA? Does that part of it then get closed?

Does £20,000 of the premium bond money get automatically added to the ISA once I transfer it or does the financial adviser do it

Charges  Are these charges I worked out correct?

Avia platform charge 0.25 per cent per month on £70,000 = £175 pm

Financial Adviser 0.5 per cent per month on £70,000 = £350 pm

Will I get statements in the post from Aviva or will it all be managed on the app?

When the premium bond money goes into my current account am I able to do a bank transfer to my Aviva account once it is set up?

Funds (These are the other Questions I am going to ask my financial adviser are they good questions to ask?

Will the portfolio of funds you choose be invested in both the ISA and the General Investment Account/Investment Portfolio? How does this work?

Will the funds be invested in Open Ended Investment Companies or Unit trusts? What is the difference between the two?

What are the funds you are proposing to invest in and what do they do?

What are the fund charges? and are they worked out daily?(as on here you mentioned previously I don't want to go higher than 0.5 per fund)

What is the average yield on these funds?

Thank you for all your help

AlanP_2

The platform and IFA charges you have worked out are the annual cost so divide by 12 for monthly cost.

masonic

Tabby026 said:

Funds (These are the other Questions I am going to ask my financial adviser are they good questions to ask?

Will the portfolio of funds you choose be invested in both the ISA and the General Investment Account/Investment Portfolio? How does this work?

Will the funds be invested in Open Ended Investment Companies or Unit trusts? What is the difference between the two?

What are the funds you are proposing to invest in and what do they do?

What are the fund charges? and are they worked out daily?(as on here you mentioned previously I don't want to go higher than 0.5 per fund)

What is the average yield on these funds?

Thank you for all your help

I don't see the value in asking the question about OEIC vs UT (the subtle differences between these aren't really worth understanding). You ask what the funds will be in your next question, which will allow you to check exactly what they are. If the adviser is including some ETFs or investment trusts in the portfolio, then it might be worthwhile for you to understand how these differ from OEIC/UT investments.

I would suggest that yield is not so important, but the risk level and expected returns are (yield is just one element of returns). Part of 'what do they do', but good for setting your expectations.

dunstonh

hat happens to the General Investment Account/Investment Portfolio next year, once the other £10,000 will be moved across to the ISA? Does that part of it then get closed?

platforms offer multiple wrappers.   You have an account that can utilise all the different wrappers.    Accounts do not get closed as such.  It goes to zero.

Does £20,000 of the premium bond money get automatically added to the ISA once I transfer it or does the financial adviser do it

Your adviser keys the transaction.

Will I get statements in the post from Aviva or will it all be managed on the app?

Quarterly statements.   you can go paper free if you wish.

When the premium bond money goes into my current account am I able to do a bank transfer to my Aviva account once it is set up?

yes

Will the portfolio of funds you choose be invested in both the ISA and the General Investment Account/Investment Portfolio? How does this work?

In your case, yes they would. There is no logic in having anything different.

Will the funds be invested in Open Ended Investment Companies or Unit trusts? What is the difference between the two?

OEICS are modern-day unit trusts.  Most UTs converted to OEIC status many years ago.   Don't worry about this as they are effectively the same thing.  You would not understand or need to understand the differences.

What are the fund charges? and are they worked out daily?(as on here you mentioned previously I don't want to go higher than 0.5 per fund)

Fund charges are taken daily (think that was already answered on this thread).

What is the average yield on these funds?

Why does that matter?  Are you investing on a yield strategy or a total return strategy?

Tabby026

Thank you.  I got confused by yield and returns.  Returns was what I meant. Sorry about that I am new to all this.

Tabby026

Hi I have decided with my husband that I am going to invest the maturing ISA which works out to £39290.32 and then add 20,000 to it for this tax year, as we have decided to do home refurbishments with the remaining 10,000. So the total invested would be 59290.32.  I have emailed my financial adviser today advising him of our decision, before he does the draft report for me by end of play on Tuesday.  Many thanks for all your help.

Tabby026

These are the Assets my financial adviser has proposed I invest in risk level 1-7 these are a risk 4

BMO Universal MAP Cautious C Acc 25.00%

Liontrust Sustainable Future Cautious Managed 2 Net Inc 25.00%

HSBC Global Strategy Conservative Portfolio C Acc  25.00%

BlackRock MyMap 4 D Acc 25.00% 

The charges for your ISA Portfolio 

0.25 % Aviva platform charge

0.5 % ongoing adviser charge 

Fund manager Initial charge 

This is a charge imposed by the fund manager on any purchase of units by an investor. It is calculated as a percentage of the gross amount invested, and deducted prior to investment. Some funds may have different prices for buying and selling units. In these cases the initial charge is included within the price at which you buy units. 

Individual Fund charges charged daily

Based on your current choice, the charges are: (please note these charges are variable and may change over time)

Investment	OCF/TER charge %
BlackRock MyMap 4 D Acc	0.17%
BMO Universal MAP Cautious C Acc	0.29%
GBP Cash	0.00%
HSBC Global Strategy Conservative Portfolio C Acc	0.18%
Liontrust Sustainable Future Cautious Managed 2 Net Inc	0.86%
Weighted Average charge	0.25%

Weighted average % charge 

This is the average charge once the percentages of the investment choices are taken into account. 

Do I need to know about the companies he is proposing to invest in my Aviva ISA? Does anyone have any information on them?

Do the fund charges seem reasonable? I know I have to look at this investment as a long term at least ten year plan, so I understand there will be no quick gains.

Any advice would be appreciated please.

Are there any questions I should be asking him before I see him tomorrow afternoon to sign the papers.

Many thanks in advance.