Moving SIPP to Fundament and Timeline

CaptainParkingspace

dunstonh said:

You outsource your investment decisions to your IFA.    Your IFA wants to move from advisory to discretionary.   The IFA can explain the pros and cons (which I have pretty much summarised above).   

Moving away from Quilter will reduce charges (Quilter is quite an expensive platform nowadays and I have been moving my legacy clients from them).

Thanks, starting to make sense now. So sounds like Quilter currently does both things.

I'm still not quite clear what happens to all my old Blackrock, HSBC etc funds though. Do they get sold to Timeline, or do they stay as they are until a decision is made to rebalance?

dunstonh

Thanks, starting to make sense now. So sounds like Quilter currently does both things.

As do most platforms.     

I'm still not quite clear what happens to all my old Blackrock, HSBC etc funds though. Do they get sold to Timeline, or do they stay as they are until a decision is made to rebalance?

They don't get sold to Timeline.  Timeline doesn't own your money.   They will be switched to the funds that match the ratios of the timeline portfolio that you are being recommended.

When you log into quilter and see the funds on your valuation (or statement) then the same will be the case with fundment.  Each of the underlying funds is held by you and will be listed with number of units held by you.

One of the bigger differences (which is largely irrelevant to you directly) is that MPS tend to have access to institutional class share classes.  These are cheaper than the clean retail share classes.  

Pat38493

CaptainParkingspace said:

LHW99 said:

I think in plain English it means:

1) Their online system is secure - I should hope so.

2) Your independent advisor can choose any investments they think are right for you.

They can manage them all in the one online pplatform, even if you have a SIPP, ISAs and unwrapped investments

3) You can have a look at what you have, as well as the adviser

4) The platform doesn't make decisions on the investments, your advisor gives the instructions (eg buy / sell) and the platform (managers) do what they're told.

Thanks. I suppose my real question though is how is the proposed arrangement is different from what I have now in terms of the risks to my life savings. The Quilter website doesn't go on about platforms other than it being part of the URL (platform.quilter.com), while Fundment don't seem to talk about Collective Retirement Accounts. Having money in a pension I can understand. That pension fund being managed via a software platform, and being able to switch to a different service provider to manage the same pot, I can also understand. Beyond that I am not sure what I am letting myself in for and my instinct is not to meddle with it.

I might be wrong but the way I see it, IFAs use various software platforms to control their client's investments, and Qulter and Fundament are different software platforms that allow the adviser to control all your investments - even if your investments are of various types with various providers, they can control it all from one interface.  You need to ask your adviser what is the advantage to you (rather than to him/her) of doing this (e.g. lower charges that are passed on to you?) and why is the adviser doing this now?

I think that Timeline is slightly different - Timeline is a software modelling tool that financial advisers use to stress test your investments against history - so, for example, your adviser could say to you - based on 120 years of economic history data, your investments and pensions have a 98% chance of lasting until you are 100 years old based on your intended spending plan.  Timeline can probably load data from the other platform so that the adviser can automatically update Timeline with your investment profile.

(this makes it sound like Timeline knows how every single investment will perform, but actually what it does is that it splits your current investments into a range of categories like "UK Equities", "US Equities" and so on and then knows the historical performance of those categories).

dunstonh

I think that Timeline is slightly different - Timeline is a software modelling tool that financial advisers use to stress test your investments against history - so, for example, your adviser could say to you - based on 120 years of economic history data, your investments and pensions have a 98% chance of lasting until you are 100 years old based on your intended spending plan.  Timeline can probably load data from the other platform so that the adviser can automatically update Timeline with your investment profile.

What you describe is a piece of software offered by Timeline but is different to the MPS service offered by Timeline.

Same company.  Different offering from the company

CaptainParkingspace

Pat38493 said:
so, for example, your adviser could say to you - based on 120 years of economic history data, your investments and pensions have a 98% chance of lasting until you are 100 years old based on your intended spending plan.  Timeline can probably load data from the other platform so that the adviser can automatically update Timeline with your investment profile.

Now that you mention it, my advisor has shown me something like this in the past. (I still think it's optimistic.)

dunstonh

CaptainParkingspace said:

Pat38493 said:
so, for example, your adviser could say to you - based on 120 years of economic history data, your investments and pensions have a 98% chance of lasting until you are 100 years old based on your intended spending plan.  Timeline can probably load data from the other platform so that the adviser can automatically update Timeline with your investment profile.

Now that you mention it, my advisor has shown me something like this in the past. (I still think it's optimistic.)

Not sure how that could be optimistic as Timeline modelling shows the ranges of what happened in the 20th century using real data.   It then splits the main chart to indicate best case, optimistic, median, pessimistic and worst case.  So, the the charting has all of them on there and not just optimistic.   It also displays a success rate based on your life expectancy and spending needs.  That again is based on most of the 20th century.

CaptainParkingspace

Thanks all. Reply below from my FA says the same thing. I think it is a good idea and I’ll go for it, but glad I checked. 

"At present, you have a pension with Quilter and your funds are invested with various tracker funds. The funds cost 0.33% and the pension with Quilter costs 0.21%.  As mentioned in email and above attachments we constantly look to reduce these costs and my advice is to switch your pension to Fundment with a cost of 0.12% and move the investment funds to Timeline who will provide a portfolio of tracker funds for 0.22%. When combined this reduces your current costs by £1,940 per annum (37%). You will also see in the report that the portfolio with Timeline has produced slightly better returns whilst not taking any more risk."