I'm in a panic about retirement, pensions and investments - talked to SJP and my bank

MallyGirl

CGT limits are shrinking rapidly so I wouldn't hang about. You can transfer shares to a spouse so they use their CGT allowance too.

katejo

Dulce-ridentem said:

It's a good problem to have. We have always been financially prudent and have been lucky enough to have substantial savings and pension pot, with some DB pension as well.

How do I find a good IFA who can help plan the best route to mix drawdown of pensions and minimise tax? I know it's a repeat question on MSE forums but I haven't found a recent answer and have some specific wrinkles.

I don't want to work hard at investments. I do want to manage tax effectively. I have no dependents and want to die broke (and enrich some charities, ultimately)! We've gradually built up our assets over 40+ years of hard work and I'm so used to saving I don't know how to spend.

Half our savings are in fixed term bonds and half with a major bank for whom we are 'high net worth' customers. The bank have delivered about 6% TWRR over the past 9 years  (that's the equivalent annual growth rate if compounded). They have also been awful at communication.

SJP would love to manage our cash and our pensions (!). They charge more than the bank but the IFA involved would probably add value through tax wrappers and advising on drawdown strategies (so we live off a mix of capital and income and minimise tax). I'm a little unsure about some of his recommendations as the fees are high and I can't see the advantages (offshore bonds with 12% fees over first 5 years, and SJP taking over one of my pensions that guarantees 3.5% pa after fees which is modest but secure...)

We've got some big bonds just maturing this week that usually I'd shove into the best rate I can get, currently pretty good - I keep to 85K per institution. Of course SJP say don't do that. So I'm getting anxious and I know I shouldn't make such a big decision quickly.

How do I find an IFA who can help with this? I don't think the bank will step up given their past performance. The SJP IFA is bearable as salespeople go but I can see MSE don't like SJP. I've read the reports saying SJP funds perform poorly but SJP say those reports are inaccurate ...

I know I'm lucky but it actually feels like a burden! Where do I go for advice, please?

I can't advise you but will just say that I have found  the SJA  advisor very helpful. I know that he isn't independent but he hasn't been a pushy salesman either. I wouldn't have agreed to take him on if he had been.  I only have investments with them though not my pension.

Albermarle

katejo said:

Dulce-ridentem said:

It's a good problem to have. We have always been financially prudent and have been lucky enough to have substantial savings and pension pot, with some DB pension as well.

How do I find a good IFA who can help plan the best route to mix drawdown of pensions and minimise tax? I know it's a repeat question on MSE forums but I haven't found a recent answer and have some specific wrinkles.

I don't want to work hard at investments. I do want to manage tax effectively. I have no dependents and want to die broke (and enrich some charities, ultimately)! We've gradually built up our assets over 40+ years of hard work and I'm so used to saving I don't know how to spend.

Half our savings are in fixed term bonds and half with a major bank for whom we are 'high net worth' customers. The bank have delivered about 6% TWRR over the past 9 years  (that's the equivalent annual growth rate if compounded). They have also been awful at communication.

SJP would love to manage our cash and our pensions (!). They charge more than the bank but the IFA involved would probably add value through tax wrappers and advising on drawdown strategies (so we live off a mix of capital and income and minimise tax). I'm a little unsure about some of his recommendations as the fees are high and I can't see the advantages (offshore bonds with 12% fees over first 5 years, and SJP taking over one of my pensions that guarantees 3.5% pa after fees which is modest but secure...)

We've got some big bonds just maturing this week that usually I'd shove into the best rate I can get, currently pretty good - I keep to 85K per institution. Of course SJP say don't do that. So I'm getting anxious and I know I shouldn't make such a big decision quickly.

How do I find an IFA who can help with this? I don't think the bank will step up given their past performance. The SJP IFA is bearable as salespeople go but I can see MSE don't like SJP. I've read the reports saying SJP funds perform poorly but SJP say those reports are inaccurate ...

I know I'm lucky but it actually feels like a burden! Where do I go for advice, please?

I can't advise you but will just say that I have found  the SJA  advisor very helpful. I know that he isn't independent but he hasn't been a pushy salesman either. I wouldn't have agreed to take him on if he had been.  I only have investments with them though not my pension.

A family member loves their SJP advisor. Having read many posts about them and about different IFA's, you can see some pros and cons to SJP.
Pros- Professional sounding people and literature; Make an effort to get to know you/your family and keep in regular contact ( remember your birthday and things like that ) It would appear from posts on here some IFA's are not very good at regular updates/keeping the customer sweet. ( I am sure some are very good at this though) 
Cons - Restricted product offering ( not going to comment on SJP funds performance as I am not sure of my facts); high fees ; Lock in for up to 6 years ; sometimes seem to suggest over complicated investments that can lock you in even further/difficult to untangle later ( of course you can say no to these) 

artyboy

Albermarle said:

katejo said:

Dulce-ridentem said:

It's a good problem to have. We have always been financially prudent and have been lucky enough to have substantial savings and pension pot, with some DB pension as well.

How do I find a good IFA who can help plan the best route to mix drawdown of pensions and minimise tax? I know it's a repeat question on MSE forums but I haven't found a recent answer and have some specific wrinkles.

I don't want to work hard at investments. I do want to manage tax effectively. I have no dependents and want to die broke (and enrich some charities, ultimately)! We've gradually built up our assets over 40+ years of hard work and I'm so used to saving I don't know how to spend.

Half our savings are in fixed term bonds and half with a major bank for whom we are 'high net worth' customers. The bank have delivered about 6% TWRR over the past 9 years  (that's the equivalent annual growth rate if compounded). They have also been awful at communication.

SJP would love to manage our cash and our pensions (!). They charge more than the bank but the IFA involved would probably add value through tax wrappers and advising on drawdown strategies (so we live off a mix of capital and income and minimise tax). I'm a little unsure about some of his recommendations as the fees are high and I can't see the advantages (offshore bonds with 12% fees over first 5 years, and SJP taking over one of my pensions that guarantees 3.5% pa after fees which is modest but secure...)

We've got some big bonds just maturing this week that usually I'd shove into the best rate I can get, currently pretty good - I keep to 85K per institution. Of course SJP say don't do that. So I'm getting anxious and I know I shouldn't make such a big decision quickly.

How do I find an IFA who can help with this? I don't think the bank will step up given their past performance. The SJP IFA is bearable as salespeople go but I can see MSE don't like SJP. I've read the reports saying SJP funds perform poorly but SJP say those reports are inaccurate ...

I know I'm lucky but it actually feels like a burden! Where do I go for advice, please?

I can't advise you but will just say that I have found  the SJA  advisor very helpful. I know that he isn't independent but he hasn't been a pushy salesman either. I wouldn't have agreed to take him on if he had been.  I only have investments with them though not my pension.

A family member loves their SJP advisor. Having read many posts about them and about different IFA's, you can see some pros and cons to SJP.
Pros- Professional sounding people and literature; Make an effort to get to know you/your family and keep in regular contact ( remember your birthday and things like that ) It would appear from posts on here some IFA's are not very good at regular updates/keeping the customer sweet. ( I am sure some are very good at this though) 
Cons - Restricted product offering ( not going to comment on SJP funds performance as I am not sure of my facts); high fees ; Lock in for up to 6 years ; sometimes seem to suggest over complicated investments that can lock you in even further/difficult to untangle later ( of course you can say no to these) 

Well according to a Telegraph article, SJP currently has 900,000 clients and is the UKs biggest 'wealth manager'.

So they must be doing something right - just a shame that doesn't include having funds that can even claim to be average performers. Or anything approaching reasonable fee levels. It sounds as though they are the next target of the ambulance chasing law firms...

Dulce-ridentem

A further observation on SJP - had a meeting this week (essentially to keep building my knowledge). Pretty much as they were leaving they said they needed everything signed within the next 3 days  or the Letters of Authority would expire and all the data collection would have to be done again, causing delays etc. The letters of authority were signed less than five months ago. They said LoAs expire after 6 months in which case they actually still have a month (ok, christmas...) -- and I'm not even sure the 6 months is accurate as a quick web search suggests 12 months is normal. I regard this as unnecessary pressure - even if it is true, they could have informed us before the meeting or during it, not used it to try to push for a snap decision right at the end. We're talking two people's entire pensions and life savings it's a huge decision.

Pat38493

Dulce-ridentem said:

A further observation on SJP - had a meeting this week (essentially to keep building my knowledge). Pretty much as they were leaving they said they needed everything signed within the next 3 days  or the Letters of Authority would expire and all the data collection would have to be done again, causing delays etc. The letters of authority were signed less than five months ago. They said LoAs expire after 6 months in which case they actually still have a month (ok, christmas...) -- and I'm not even sure the 6 months is accurate as a quick web search suggests 12 months is normal. I regard this as unnecessary pressure - even if it is true, they could have informed us before the meeting or during it, not used it to try to push for a snap decision right at the end. We're talking two people's entire pensions and life savings it's a huge decision.

That kind of selling tactic has been used a few times on me in the past (not with pensions but other things) - as soon as they try that tactic, they lost the sale instantly with me and I made a mental note never to use that company again.

cfw1994

Pat38493 said:

Dulce-ridentem said:

A further observation on SJP - had a meeting this week (essentially to keep building my knowledge). Pretty much as they were leaving they said they needed everything signed within the next 3 days  or the Letters of Authority would expire and all the data collection would have to be done again, causing delays etc. The letters of authority were signed less than five months ago. They said LoAs expire after 6 months in which case they actually still have a month (ok, christmas...) -- and I'm not even sure the 6 months is accurate as a quick web search suggests 12 months is normal. I regard this as unnecessary pressure - even if it is true, they could have informed us before the meeting or during it, not used it to try to push for a snap decision right at the end. We're talking two people's entire pensions and life savings it's a huge decision.

That kind of selling tactic has been used a few times on me in the past (not with pensions but other things) - as soon as they try that tactic, they lost the sale instantly with me and I made a mental note never to use that company again.

Yup.
I wouldn't touch them with the proverbial barge-pole either, but if I was talking with any company who are selling me something (because that is what SJP are doing), and they tried this ridiculous tactic to rush me into something, I'd tell them exactly where to go....

Find a truly independent financial advisor.....or DIY!

dunstonh

A further observation on SJP - had a meeting this week (essentially to keep building my knowledge). Pretty much as they were leaving they said they needed everything signed within the next 3 days  or the Letters of Authority would expire and all the data collection would have to be done again, causing delays etc

BS.   Letters of authority for agency transfers are constant until you do another one to a different adviser.    Letters of authority for information typically range from 12-24 months.

Some cost comparison software requires the figures to be dated within the last 6 months.    But that isnt a problem as the adviser just asks for updated values and projections.  All the other data remains valid.  i.e. if there was a letter from the provider saying no GMP, GAR etc 6 months ago, then that would still be the case now.  It doesn't expire.

Dulce-ridentem

I agree fully with people's comments about this underhand tactic from SJP  - I only met with them because I wanted to hear their take on my multiple pensions -- I did learn somthing new that is useful (my small expat offshore pension is a much better asset than I had realised) -- but their fees are about double anyone else I've spoken to and this pressure tactic would decide me, if I weren't already decided, that I do not want to work with them. I am choosing between two local IFAs at this point ..

Thanks, everyone, for the advice and support.

Beckster1964

I’ve just looked at the fees for SJP - they are pretty eye watering! Just to get the ball rolling, and based upon my existing pension pot, I would have to give them £24k! I think not…!