Financial Advise draw down pension fees

Samandella

cfw1994 said:

I do find these threads amusing.  84 replies and over 1.7k views, yet the OP has gone AWOL 🤪

When a new poster drops in a question that generates 9 pages of replies, yet they haven’t replied (or perhaps even ‘liked’) once🤷‍♂️

I know everyone starts somewhere on any forum as a newbie…but if they don’t remain interested in their own thread pretty quickly, I have a rule to not bother engaging…..it screams ‘troll’ 😉

Summary: DIY if you feel competent enough, use an IFA if you don’t.  The latter will certainly take their pound of flesh, even when your funds go down, but if you are the sort who might put it all on black, then IFA all the way!
Live your best life 😎👍

Perhaps when there is an answer that is not basically just repeating my question.  Your response is in no way an answer to my question, just a sad prson who feels the need to write on any forum

Linton

Samandella said:

Hi, I have a draw down pension that I have been accessing for the past few years.  Only recently I looked at the pension provider statement and the charges.  The pension provider charges 0.5% of the fund values annually and £35 for each transaction.  My financial adviser however has an annual  fee charges 1% of fund value.  This total fees amount to 20% of the pension I am receiving.  I speak to my financial adviser once a year and discuss what risk factors I am happy with and he then decides where to invest the fund. 

(A) If I did not use the financial adviser what are my options? 

(B)Does anyone manage their own investments and where do you get the information as to where to invest?  

(C) Are there specific site that give this sort of advice freely?  

I have asked the pension provider but their reply was basically very short, saying that it will “will be at your own risk”

Thanks for any comments

To answer your questions
(A) You manage the investments yourself, choosing what and when to buy and sell - commonly know as "diy".  There are a few intermediate options where you answer a small number of online questions and are recommended one of a standard set of funds.  There is no guarantee that the questions asked adequately cover your situation.
(B) Yes, almost all the regular contributors to this forum manage their own investments, me included.  For me the information comes from years of experience and detailed data on funds from morningstar and trustnet. This type of data is freely available.
(C) No.  The right choice of investments depends very much on your attitudes, wishes, financial circumstances, objectives, timescales for investing and undoubtedly other factors which dont immediately come to mind.  To consider these factors fully requires possibly lengthy discussion.

Only regulated advisors are allowed to charge for advice.  If you take advice from a regulated advisor you could claim compensation if the advice is not appropriate.  You should find that companies that are not regulated to provide advice will not do so as it could place them in a difficult position with the regulators.  The most they can say is to give you the options that they provide.  Whether any are appropriate for you is your decision.

Free advice may be worth no more than it costs you and there is no compensation if it's wrong.

cfw1994

Samandella said:

Perhaps when there is an answer that is not basically just repeating my question.  Your response is in no way an answer to my question, just a sad prson who feels the need to write on any forum

🤣

The first page had a bunch of good answers, ten days ago!
I guess as a point of fact, my family & friends will confirm I am a VERY happy person who enjoys some information/banter on a few forums I find interesting 🤪

Maybe long-time poster Linton has finally satisfied you with their latest reply?

(I still feel it lines up reasonably with my earlier summary - "Summary: DIY if you feel competent enough, use an IFA if you don’t.  The latter will certainly take their pound of flesh, even when your funds go down, but if you are the sort who might put it all on black, then IFA all the way!")

Let us know your thoughts on the suggestions made through the thread, very few of which just repeated your question 🤷‍♂️

Oh, & apologies if the tone of my reply upset you.  Every now & then this forum gets a post that inspires a lot of discussion - remember they are all just opinions, no 100% right or wrong here - but it is nice to see the original poster return with some comments/thanks/further questions.   9 pages with no reply *often* indicates trolling behaviour. 

Patrol

Samandella said:

I speak to my financial adviser once a year and discuss what risk factors I am happy with and he then decides where to invest the fund.

Does your adviser change your investments significantly each year. I stand to be corrected on this but would expect a client in drawdown to need minimal changes in investment strategy. If you feel unable to self-manage would your, or another, adviser consider a one-off rebalance that would remain suitable unless your circumstances change significantly.

dunstonh

Patrol said:

Samandella said:

I speak to my financial adviser once a year and discuss what risk factors I am happy with and he then decides where to invest the fund.

Does your adviser change your investments significantly each year. I stand to be corrected on this but would expect a client in drawdown to need minimal changes in investment strategy. If you feel unable to self-manage would your, or another, adviser consider a one-off rebalance that would remain suitable unless your circumstances change significantly.

Typically you would expect rebalancing to latest weightings and refloating the cash account.  If a time weighted strategy is in place, then that would need adjustments.   Occasionally, fund adjustments would occur.     Typically, advisers will not use single sector funds unless there is ongoing servicing in place as potentially puts them foul of MiFID requirements.       One off transactional costs are usually higher than ongoing costs in respect of adviser charges.