Do I Still need a Financial Advisor

keithtoon

Hi, I am 68 years old and retired. I receive full pension from Gov.uk. I have a £200.000 pension pot in Scottish Widows which I draw down my self, the question is I have had a Financial Advisor for over 30 years helping me to get to this point in my old age lol, now that all my monies are in Scottish Widows do i still need to pay out for his service?   TIA

Albermarle

keithtoon said:

Hi, I am 68 years old and retired. I receive full pension from Gov.uk. I have a £200.000 pension pot in Scottish Widows which I draw down my self, the question is I have had a Financial Advisor for over 30 years helping me to get to this point in my old age lol, now that all my monies are in Scottish Widows do i still need to pay out for his service?   TIA

What actual service do they provide?
How much do they charge?
Do you have at least a basic understanding about investments, the ones in your pension specifically?

keithtoon

Albermarle said:

keithtoon said:

Hi, I am 68 years old and retired. I receive full pension from Gov.uk. I have a £200.000 pension pot in Scottish Widows which I draw down my self, the question is I have had a Financial Advisor for over 30 years helping me to get to this point in my old age lol, now that all my monies are in Scottish Widows do i still need to pay out for his service?   TIA

What actual service do they provide?
How much do they charge?
Do you have at least a basic understanding about investments, the ones in your pension specifically?

Hi,
Yes to basics,
 I understand the monies are being invested via Scottish Widows, I am at this stage able to draw down my Tax Free amount approx 5% per year.
Charges approx 0.75%
Many moons ago mid 70s the financial advisor transferred my pension pot to and fro then finally at pension age advised to transfer to SWs.
TIA   Kg

LHW99

 I understand the monies are being invested via Scottish Widows, I am at this stage able to draw down my Tax Free amount approx 5% per year.

More likely the money is invested BY Scottish Widows

Scottish Widows are a pension provider, and your pension will likely be invested in one or more of their funds.

Do you know what that / those are? Who currently organises the drawdown, do you do it yourself direct to Scottish Widows, or do you tell the adviser and he / she talks to SW? If the adviser does it, are you sure that your pension plan can be operated by you directly? - some can't as they are adviser-only.

keithtoon

LHW99 said:

 I understand the monies are being invested via Scottish Widows, I am at this stage able to draw down my Tax Free amount approx 5% per year.

More likely the money is invested BY Scottish Widows

Scottish Widows are a pension provider, and your pension will likely be invested in one or more of their funds.

Do you know what that / those are? Who currently organises the drawdown, do you do it yourself direct to Scottish Widows, or do you tell the adviser and he / she talks to SW? If the adviser does it, are you sure that your pension plan can be operated by you directly? - some can't as they are adviser-only.

Thank you.
Yes I talk/Deal direct with SWs hence the question the need to continue with F.A.

dunstonh

Yes I talk/Deal direct with SWs hence the question the need to continue with F.A.

I guess you mean IFA rather than FA as only SWs in house sales force are FAs.   

If you do not need or value the modelling that the adviser does or the portfolio work that the adviser does then there i no point you paying for something you do not value. (assuming you do those things successfully yourself - paying for good advice/work and replacing it with bad DIY can be a lot more costly).

keithtoon

dunstonh said:

Yes I talk/Deal direct with SWs hence the question the need to continue with F.A.

I guess you mean IFA rather than FA as only SWs in house sales force are FAs.   

If you do not need or value the modelling that the adviser does or the portfolio work that the adviser does then there i no point you paying for something you do not value. (assuming you do those things successfully yourself - paying for good advice/work and replacing it with bad DIY can be a lot more costly).

Sorry i meant "FA" as financial advisor

Beddie

If you pay 0.75% that is probably just the SW and fund charges. You possibly aren't paying the IFA anything, but they are there when you need then and will charge ad hoc.

Give them a call and ask them.

Albermarle

Beddie said:

If you pay 0.75% that is probably just the SW and fund charges. You possibly aren't paying the IFA anything, but they are there when you need then and will charge ad hoc.

Give them a call and ask them.

Unless the OP meant they are paying the advisor 0.75%, and fund and SW charges are extra.
OR the 0.75% includes an advisor charge and fund and SW charges.

Beddie

Albermarle said:

Beddie said:

If you pay 0.75% that is probably just the SW and fund charges. You possibly aren't paying the IFA anything, but they are there when you need then and will charge ad hoc.

Give them a call and ask them.

Unless the OP meant they are paying the advisor 0.75%, and fund and SW charges are extra.
OR the 0.75% includes an advisor charge and fund and SW charges.

You're right, could be anything, which is why I suggested that instead of speculating he gives them a call.

keithtoon

Hi,
This is the statement I receive. If I stay with Scottish Widows and accept their charges as they are managing the account why do I then need a Financial Advisor?
Thank you