Moving to Vanguard to save on investment fees

Aminatidi

What are the actual investments?

Have you decided you no longer need financial planning at all?

Bostonerimus1

Prudent3 said:

I am a novice when it comes to investments so have relied on a financial advisor to date.  I have a pot of around £200k split between a stocks and shares ISA and SIPP.  Recent review of costs are working out at 2.1% which seems high in comparison to the Vanguard Life Strategy portfolio.  I’m inclined to move but obviously concerned that I’m not seeing the full picture.  Would appreciate any thoughts on this.

I'm a big advocate for DIY and saving the IFA fees as long as you have the common sense and knowledge to manage your own investments and make financial decisions. I believe that most people can DIY with a little research and by following a few basic principals; ie spend less that you make, don't take on debt except a mortgage, save 15% of your gross wages to a pension, invest in low cost index funds or multi-asset funds etc. Moving to Vanguard, H&L, Fidelity etc will save you money in fees, but you should ask yourself what you will do when your investments fall by 20%. Don't DIY until you can answer that question and have read this.

https://www.bogleheads.org/wiki/Investing_from_the_UK

Prudent3

Aminatidi said:

What are the actual investments?

Have you decided you no longer need financial planning at all?

I have actually retired so things are pretty straightforward.  I very rarely need support from my financial advisor, the monies are in a SIPP and Stocks and Shares ISA so not really sure what he brings to the table now that everything is in place.

thunderroad88

Theoretically leaving your IFA sounds sensible from purely a cost saving point of view BUT the information you’ve given on your circumstances and objectives is much too limited for anyone here to offer anything more than pretty vague thoughts. I started a similar thread last week although my personal circumstances and financial position is different to yours. However, have a read and see what info I provided and the replies that generated, it may or may not help.

https://forums.moneysavingexpert.com/discussion/6514385/dumping-ifa-portfolio-to-go-diy/p1

dunstonh

Theoretically leaving your IFA sounds sensible from purely a cost saving point of view BUT the information you’ve given on your circumstances and objectives is much too limited for anyone here to offer anything more than pretty vague thoughts.

I think the costs involved with this particular IFA are expensive from what the OP has given.  However, they have mentioned about going into VLS.    If the adviser was to use similar options to VLS (including the MPS version of VLS) and was charging 0.5% pa. then the returns net of charges would have seen the performance betteron the alternatives than the OEIC version of VLS excluding the adviser charge.    Unlike your thread, we don't know the current investments.     So, the OP is at risk of potentially reducing charges but reducing returns.   We know the IFA who put together your portfolio has done a good job and you have done well out of but you are considering comparable options.  We don't know about the portfolio in this thread and the OP is considering weaker options.

thunderroad88

dunstonh said:

Theoretically leaving your IFA sounds sensible from purely a cost saving point of view BUT the information you’ve given on your circumstances and objectives is much too limited for anyone here to offer anything more than pretty vague thoughts.

I think the costs involved with this particular IFA are expensive from what the OP has given.  However, they have mentioned about going into VLS.    If the adviser was to use similar options to VLS (including the MPS version of VLS) and was charging 0.5% pa. then the returns net of charges would have seen the performance betteron the alternatives than the OEIC version of VLS excluding the adviser charge.    Unlike your thread, we don't know the current investments.     So, the OP is at risk of potentially reducing charges but reducing returns.   We know the IFA who put together your portfolio has done a good job and you have done well out of but you are considering comparable options.  We don't know about the portfolio in this thread and the OP is considering weaker options.

Exactly..the op needs to provide much more background if he wishes people like yourself to be able to properly comment on his potential course of action. I was merely trying to show him what type of info I’d posted, not suggesting he follows any of the ideas given to me as they were specific to my case.

Prudent3

I should have also stated that I don’t need or expect to dip into my SIPP for around 5 years so happy to leave it invested.  There is also a 25% tax free element still in the pot.  I’m presently living off my government pension, a small company pension and my S&S ISA.  Biggest issue is the 2.12% I’m being charged by my FA and the platform.  

Aminatidi

What are the current investments?

Millyonare

A 2.1% fee is stratospheric!

I'd be looking to get that ratio down to 0.3% or less. It would save £10-100k per decade.

Prudent3

It’s a managed portfolio, usual 60/40 spread across UK/overseas equities
and bonds.