St James Place - should we stay ? 10 February at 3:39PM in ISAs & tax-free savings 3 replies 328 views

shropslassy

Hi everyone - just wondering if anyone has experience of using St James Place? We are a couple in our 50s (53 and 58) and have had investments with SJP for about 15 years. They manage my husbands pension (value of about £150k) and ISA worth about £70k. We've heard some bad press recently about excessive charges and poor performance. We are not particularly financially savvy, and are wondering whether (i) we should stay with them and (ii) what would the financial consequences be if we took our business elsewhere?

dunstonh

Hi everyone - just wondering if anyone has experience of using St James Place?

Plenty here have knowledge of them.  After all, SJP is one of the most expensive distribution channels in the country.   

We are not particularly financially savvy, and are wondering whether (i) we should stay with them and (ii) what would the financial consequences be if we took our business elsewhere?

On this site, you find the general position is that you should either use an IFA or you should DIY.  You shouldn't use restricted FAs/sales reps of provider (which is what you are doing at the moment).

The consequences will depend on how long the last contribution was as SJP are almost unique on charging exit charges if its within a number of  years from paying in.   However, their ongoing costs are so high that it can make sense to come out earlier if the alternative is cheaper.

Albermarle

St James Place - should we stay ?

If you were a regular reader of this forum, you would not have to ask that question.

They are expensive and often have ways and means of tying you into them. Also investment performance is nothing to write home about.
On the plus side they are popular with some people, because the sales people/advisors make an effort to build up personal relationships, ask about your family, keep in regular contact, have nice glossy brochures etc

Beddie

shropslassy said:

Hi everyone - just wondering if anyone has experience of using St James Place? We are a couple in our 50s (53 and 58) and have had investments with SJP for about 15 years. They manage my husbands pension (value of about £150k) and ISA worth about £70k. We've heard some bad press recently about excessive charges and poor performance. We are not particularly financially savvy, and are wondering whether (i) we should stay with them and (ii) what would the financial consequences be if we took our business elsewhere?

SJP are more expensive than most, but have you been happy with them so far? Is the performance in line with what you expected? Some of the fees are upfront and therefore already paid. The annual fees are probably 0.5-1% higher than you could get elsewhere. But, are you prepared to start the search for a new trusted IFA, or to learn to do it all yourself? That new IFA will charge about 3% upfront and an annual fee as well.

I'd personally leave SJP and copy whatever portfolio they did (but not the same actual funds) to a cheap platform. It can always be tweaked further, of course, as you learn more. But you do need to be comfortable with that and realise there's no one at the end of the phone if there's a problem.