DIY or stick with IFA

Albermarle

Scallypud said:

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

That looks more normal. If you have not checked it for a while, you might find that figure has improved as markets have been on the up in January.

Scallypud

Linton

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

The shares that cost 6% are as follows

Supermarket income REIT Plc ord

Linton

Scallypud said:

Linton

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

The shares that cost 6% are as follows

Supermarket income REIT Plc ord

Yes that explains it.  Sipermarkets sell their buildings to a property company and then rent them back.  Avoids large amounts of wealth being tied up in a way where it cannot be used and reduces maintenance hassle/costs since the supermarket would not naturally have expertise in that area.  It may be useful for an investor as the company's income is stable, pretty safe  and guaranteed for many years.

ian16527

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?
Al  the so please advise what is a reasonable fee for an IFA?

0.5% ongoing seems to be the rate
I checked Quilter out as my friends brother was investing via them.
The fund was no better than a multi asset fund such as HSBC global balanced but their fees were quite high.

What is the fund(s) you are invested in? This may give some comparison if yu were to go it alone which is not difficult

bostonerimus

OP, you sort of burst the bubble and maybe we can now see the naked emperor with your comment about beating your IFA's returns in your DIY account and maybe it was just luck...but a concrete reason that you are beating your IFA is the 2.4% fees they are charging, anyone would struggle with that drag on a portfolio. I would certainly get those fees way down or go DIY if you are comfortable with that.

Scallypud

ian16527 said:

What is the fund(s) you are invested in? This may give some comparison if yu were to go it alone which is not difficult

The funds are as follows

Equities UK = 21.43%
Equities North America = 17.5%
Fixed Interest UK = 16.42%
Alternative Investments = 11.29%
Equities Global = 6.91%
Equities Europe Ex UK = 6.72%
Equities Emerging Markets = 5.56%
Fixed Interest Overseas = 4.43%
Equities Japan = 3.29%
Equities Asia Pacific Ex Japan = 2,17%
Cash = 4.29%

bd10

Does this asset allocation not look rather similar to say Vanguard's Lifestrategy with 80% equity weighting, UK bias?

https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-80-equity-fund-accumulation-shares/portfolio-data 

With the obvious exceptin of 11% alternative investments. If the match/correlation is significant enough, I'd be inclined to implement that myself with a tracker fund or Lifestrategy out of the box and add alternatives to it. The total cost structure would be much lower.

Scallypud

HL are now offering cashback if you transfer your pension to them 

Linton

bd10 said:

Does this asset allocation not look rather similar to say Vanguard's Lifestrategy with 80% equity weighting, UK bias?

https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-80-equity-fund-accumulation-shares/portfolio-data 

With the obvious exceptin of 11% alternative investments. If the match/correlation is significant enough, I'd be inclined to implement that myself with a tracker fund or Lifestrategy out of the box and add alternatives to it. The total cost structure would be much lower.

It does not look particularly like VLS80 to me.  VLS80 has more than twice as much US (48%) , and you cant really wave away the alternative investments (property?).  Sure, with a bit of effort you could duplicate this portfolio but I doubt whether it would be a fruitful exercise.  The allocations seem rather old fashioned.  More useful for someone to develop a portfolio with documented justification based on the OPs current and future needs and their risk acceptance rather than just accepting the portfolio without understanding it.

Albermarle

Scallypud said:

HL are now offering cashback if you transfer your pension to them 

And it is rather generous, especially for larger pots ( £1500 cashback)
However HL is more expensive than nearly all other similar platforms.
An extra platform cost of 0.2% on nearly £400K, would = £800 pa 

However more important if you decide to DIY, is what to invest in on the platform, whether it is HL or another one.