Is it time to change from a wealth Manager aka True Potential to IFA or go DIY?

TallGirl

True Potential did the calculations based on retirement age of 57, using PB first then draw down and my small DB pension etc. 

TBC15

Snowman's spreadsheet is a useful tool to compare platforms:

https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet/p1

TallGirl

So been to see my previous financial adviser he has actually not retired just yet and was the one I was paying a fee to for my pension. He did the review and then he is retiring in 2 weeks and will then pass it over to True Potential. I told him I wanted to leave them as I do not feel I am getting the benefits from them. We had a long discussion and he is not convinced right now of passive funds on a cheap platform managed by myself is ideal. My pension is invested for growth and he told me I need to get that changed as I get closer to retirement.

He understands I do not see it as value for money what I pay them but he wants me to give it one more year and then he is quite happy as a friend to advice me (unregulated of course) when I want to leave True Potential.  As I am looking at retiring in 5 years max I feel advice on drawn down and investing in retirement is still helpful. If he is happy to do it and I can learn myself and research I think that would be a good combination. 

I am going to email Reeves and say thanks but no thanks to their £10K fee. That really is an absurd amount.

This thread has been really useful and I might revisit in a years time but I think I am pretty made up and staying where I am. 

dunstonh

So been to see my previous financial adviser he has actually not retired just yet and was the one I was paying a fee to for my pension. He did the review and then he is retiring in 2 weeks and will then pass it over to True Potential.

Anybody that he passes to TP will see him get 8%.

He understands I do not see it as value for money what I pay them but he wants me to give it one more year and then he is quite happy as a friend to advice me (unregulated of course) when I want to leave True Potential.  

I hope you see a potential link to the above comment.

JohnWinder

Could it really be 8%. £32000? You could start afresh with someone for a modest fraction of that, surely?

It certainly puts a different complexion on things, and I’ll make some obvious assumptions. He was likely under no obligation to tell you how he could benefit from you moving to TP, but despite your expressed wish not to move to TP he persuaded you to without declaring his conflict of interest. He might be intending to become your friend when he retires, but that’s not how friends treat each other. We don’t know which of your options would turn out better for you, but that’s pretty shabby treatment, and reason to question, no, discount any advice he has for you.

Are passive funds on a cheap platform wrong for you because you need to transition from accumulation to withdrawal in a few years, or these separate issues? Let us know if you need convincing about the former, although countless threads here give supporting information. Transitioning has complexity, but would you trust anyone else with managing it knowing what we’ve just learnt about 8%? £32,000 before you even start. 

LHW99

My pension is invested for growth and he told me I need to get that changed as I get closer to retirement.

While this is only my opinion, and your situation will be quite different, I would not personally be aiming to change from a growth outlook at 52.

You would on average expect to survive for at least another 30 years, maybe up to 40+, so IMO it is too early just yet to consider moving away from growth, particularly with the backup of a small DB (and state pension) to come.

TallGirl

Thank you for you comments I take them onboard of course I do. I will check with him re the fee for them taking over the advice the fund will stay with Royal London so no changes there. 

I am not planning on changing from a growth outlook now at 52 but surely it is worth looking at in 4 to 5 years when I am 57 which is the age I am looking to retire at? I had in mind to do it then. Or should I wait even longer? I was thinking some of the money might switch to a less risky fund and leave the rest more for me to research for sure. 

Reason for sticking with an active fund right now as due to the turbulence in the markets remember I have been with them less that 2 years so have seen the brunt of the market downturn. 

JohnWinder

Reason for sticking with an active fund right now as due to the turbulence in the markets remember I have been with them less that 2 years so have seen the brunt of the market downturn. 

It is perhaps not the right time for you to make big changes now, but for me the reason would be if you’re not clear enough on what any changes should be and why you should make them.

If ‘the markets’ have ‘brunted’ your portfolio, then surely they’ve ‘brunted’ a passive portfolio as well since it just follows the markets? If so, no loss in changing.  If yours has done even worse than the markets, there may still be good reasons to change, and you carry the sad memory of that loss as you might wear a hair shirt as penance and a reminder to be better informed next time.

TallGirl

Again thank you so much I was able to go back and got clarification. He is not changing the ongoing adviser fee to True Potential he will take himself off (I need to sign a document to do this) and then it is up to me when I need to make changes. So no ongoing adviser charges on the pension.

I am comfortable with that and going to leave the rest with TP it is not the larger amount (pension is). I do know I want to leave them but right now there is no change to anything in my life so may as well take a bit more time to think. 

I will keep a keen eye and continue to learn. This thread has been so helpful thank you to everyone who contributed. 

jimjames

TallGirl said:

I am not planning on changing from a growth outlook now at 52 but surely it is worth looking at in 4 to 5 years when I am 57 which is the age I am looking to retire at? I had in mind to do it then. Or should I wait even longer? I was thinking some of the money might switch to a less risky fund and leave the rest more for me to research for sure. 

If you are looking to buy an annuity then yes it would be advisable to change. If you're just moving to drawdown then you probably want to keep a good growth element.