DIY or stick with IFA

Albermarle

Scallypud said:

This might be a stupid question but here goes ,
Quilter = 0.9% IFA = 0.7% Total 1.6%
As for the Weighted cost for collective funds fee would i still have this to pay even with a new IFA?
Also please advise what is a reasonable fee for an IFA?

For £360 K , 0.7% ongoing fee for IFA is in the right ball park.
Fund costs depend on which funds are chosen. They could be anything between 0.3% and 1 %
There will also be a platform charge ( that is presumably now wrapped up in the Quilter charge) which would be around 0.2%
Plus you will have to pay an initial fee to the new IFA , maybe £4K ?

The earlier post from Dunstonh also gives some idea of charges.

Linton

Scallypud said:

This might be a stupid question but here goes ,
Quilter = 0.9% IFA = 0.7% Total 1.6%
As for the Weighted cost for collective funds fee would i still have this to pay even with a new IFA?
Also please advise what is a reasonable fee for an IFA?

The fund costs depend solely on which funds are chosen.  If a new IFA chooses different funds then the fund costs would be different, but there would still be fund costs.  The 0.9% figure is high for an average. Fund costs are important, but less important than choosing appropriate funds. 

The normal figure quoted here for an IFA  ongoing charge for a large pot is 0.5% without a large "Quilter" charge on top.  In the past it was usual for the IFA to make the choice of investments themselves which would be covered by the initial charge.  It should not be a large amount of ongong work.  In recent years professional wealth managers are more often used but that  should result in less work and hence a lower charge by the IFA than would otherwise be the case.

dunstonh

Scallypud said:

My IFA passed on my SIPP pension to Quilter Cheviot to manage so my IFA gets 0.7% for doing nothing really. The breakdown of the costs is as follows

Quilter Management = 0.9%
IFA     =  0.7%
Weighted cost of collective funds = 0.9%
TOTAL = 2.5%

I'm not sure what the Weighted cost of collective funds fee is for but i know you guys will know.

Are you sure you are not double counting there.   DFMs are typically around 0.2x% to 0.3x%.   0.9% seems very high for a DFM.  but would be about right if you include the DFM charge and fund charges together.

Scallypud

Albermarle said:

f i was to transfer my pension to my private SIPP would i incur exit fees?
Probably not, but you need to dig out the paperwork to check. If instead you employed a new cheaper IFA, they would sort that out for you.

The only problem i have with transferring out is that i'm locking in my losses.
0.9% down from this time last year which is probably the same as everyone else

Scallypud

I think i will speak to other IFA's and see what they have to offer.
Thanks for all your advice and comments

Scallypud

dunstonh said:

Scallypud said:

My IFA passed on my SIPP pension to Quilter Cheviot to manage so my IFA gets 0.7% for doing nothing really. The breakdown of the costs is as follows

Quilter Management = 0.9%
IFA     =  0.7%
Weighted cost of collective funds = 0.9%
TOTAL = 2.5%

I'm not sure what the Weighted cost of collective funds fee is for but i know you guys will know.

Are you sure you are not double counting there.   DFMs are typically around 0.2x% to 0.3x%.   0.9% seems very high for a DFM.  but would be about right if you include the DFM charge and fund charges together.

I have a breakdown of the costs in my quarterly report. They range from 0.2% to 6% depending on the fund.

Because_I_Can

Definitely appears quite expensive Scallypud.  If you search through my previous posts, you’ll see I was also with Quilter under a DFM arrangement via an FA. On a pot of £1m+, I was paying an FA charge of 0.35% (which is a decent rate probably because of the size of the pot) and an overall % figure of 1.3% for Quilter which covered DFM + VAT (0.65% + VAT) and all platform, dealing, currency, duty and fund charges). Total therefore of around 1.65%.

For a variety of reasons (high charges, poor performance, an overly complex portfolio, etc), I moved away from Quilter and now operate a hybrid fire and forget portfolio of 3 funds. I have retained the FA but may move to a transactional based arrangement in the future. Overall, my fees are around the 1% mark. 

Linton

Scallypud said:

dunstonh said:

Scallypud said:

My IFA passed on my SIPP pension to Quilter Cheviot to manage so my IFA gets 0.7% for doing nothing really. The breakdown of the costs is as follows

Quilter Management = 0.9%
IFA     =  0.7%
Weighted cost of collective funds = 0.9%
TOTAL = 2.5%

I'm not sure what the Weighted cost of collective funds fee is for but i know you guys will know.

Are you sure you are not double counting there.   DFMs are typically around 0.2x% to 0.3x%.   0.9% seems very high for a DFM.  but would be about right if you include the DFM charge and fund charges together.

I have a breakdown of the costs in my quarterly report. They range from 0.2% to 6% depending on the fund.

6% is far higher than could occur for a normal fund.  I would guess that in this case it is a fund that owns property, probably commercial property - ie the fund is a landlord.  Clearly being a landlord of a physical building incures far higher costs than merely buying and selling investments.  Despite the high overheads renting out property is still a reasonable business.

So putting it in an overall average of funds that mainly invest in shares or bonds could be misleading.

Albermarle

Scallypud said:

Albermarle said:

f i was to transfer my pension to my private SIPP would i incur exit fees?
Probably not, but you need to dig out the paperwork to check. If instead you employed a new cheaper IFA, they would sort that out for you.

The only problem i have with transferring out is that i'm locking in my losses.
0.9% down from this time last year which is probably the same as everyone else

You only really lock in losses, if you sell the investments.

In any case only losing less than 1% in the last 12 months is a good result.

I looked yesterday and from Jan1st 2021 to today , I am still 6 to 7% down , which I think is pretty typical/average.

Scallypud

Albermarle said:

Scallypud said:

Albermarle said:

f i was to transfer my pension to my private SIPP would i incur exit fees?
Probably not, but you need to dig out the paperwork to check. If instead you employed a new cheaper IFA, they would sort that out for you.

The only problem i have with transferring out is that i'm locking in my losses.
0.9% down from this time last year which is probably the same as everyone else

You only really lock in losses, if you sell the investments.

In any case only losing less than 1% in the last 12 months is a good result.

I looked yesterday and from Jan1st 2021 to today , I am still 6 to 7% down , which I think is pretty typical/average.

Sorry for misleading you but my SIPP is down 9% from this time last year