To move from an IFA

halfanacker

Hi,

I have been using an IFA for a few years to manage two SIPP's and 2 Isa's and I have been happy with the portfolio that they have created for both myself and my wife and the charges that have been made up to now however I have started to look at options . I could achieve 95% of the portfolio that I have via AJ Bell and at a  considerably lower cost but I guess my conscience is playing on me a bit . The IFA created the portfolio , which he has been paid for on a 0.5% ongoing basis admittedly , but now I am going to move to virtually the same portfolio as he created but not be paying him. Has anyone else been in a similar situation?

Albermarle

Not been in this situation, but the investment portfolio part of an IFA service is probably the simplest part, and the easiest to replicate. Do you get any other advice from them, particularly on issues relating to family, inheritance, tax etc.?
If you DIY, then you need to get up to speed with these issues as well, particularly if you are nearing the time to drawdown from these investments and your pot is quite large . 

Linton

I dont see what you have to worry over. The IFA advised you on a suitable portfolio and you paid him for the work.  Engagement completed.  You subsequently paid him to oversee the portfolio for you to ensure that it was continuing to meet your objctives. That was what the 0.5% was for. That was a separate deal which you now wish to end as you believe you can do the job yourself.  Fine, your choice.

[Deleted User]

halfanacker said:

Hi,

I have been using an IFA for a few years to manage two SIPP's and 2 Isa's and I have been happy with the portfolio that they have created for both myself and my wife and the charges that have been made up to now however I have started to look at options . I could achieve 95% of the portfolio that I have via AJ Bell and at a  considerably lower cost but I guess my conscience is playing on me a bit . The IFA created the portfolio , which he has been paid for on a 0.5% ongoing basis admittedly , but now I am going to move to virtually the same portfolio as he created but not be paying him. Has anyone else been in a similar situation?

You paid good money to set up this portfolio. Its yours to do as you wish.  If a car mechanic changes tires for you and you keep driving the vehicle, there is no obligation to continue paying the mechanic while he sleeps. 

halfanacker

Thanks for your replies . I have not yet had any advice regarding inheritance , tax etc . I am probably 2 years away from drawdown. I guess I have fallen into the trap that the IFA in particular is an extremely nice guy but he has been paid for his services so you are correct in that regard . 

halfanacker

There will be a saving on fees also for 95% of the same portfolio . 

bostonerimus

IFA's are useful for advice and if you need or want you hand held during bad times. They are not investment managers and generally sub-contract that service. So after things are set, in many cases, they are simply an unnecessary drain on your pension pot.