Do I need keep my IFA

GerryFP

Hi all. I'm retired with a Pru Cautious fund of about 800k and we have ISAs with Pru with a total of about 100k. From the Pot I take a monthly income. Our IFA is paid out of the funds at 0.25%. i.e about £2,270 PA. We have annual reviews which seem a tick box exercise and an APP to see our monies etc. No other activity SEEMS to take place.  Do I need the IFA ? I'd appreciate opinions . TIA

Linton

Are you confident that the Pru Cautious fund is providing sufficient returns that will meet your (and any dependents) income  needs until you reach say 95 or more? Plus anything you wish to leave as an inheritance?

What are the ISAs invested in? is it just the Cautious fund? Where is the £800K invested?  Pensions or unsheltered? There are different Cautious Pru funds and you havent said which one you hold. 

 If everything is working well, your investments aren't being drained and you are confident that you undertake any management required ( eg moving any unsheltered investments into the ISAs, changing the monthly withdrawals)  and you dont want to make major changes to your investments then I dont believe you need the IFA.  Cautious Pru funds are unlikely to do anything very exciting (good or bad).

El_Torro

Most of the people on this forum will tell you that you don't need an IFA. That is because most of the people on this forum manage their own investments and know what they're doing. 

Are you happy that you can manage your investments yourself? What if the global stock markets crash tomorrow and drop in value by 50%? Will you still know what to do? If you're happy that you can do it yourself and not make costly mistakes then yes, you can get rid of your IFA. Time will tell if your confidence in your own abilities is well placed.

dunstonh

I would have thought more was going on than that.  The Pru funds are typcally held in pensions and life funds. 

So you would expect annual events such as bed & ISA and bed & pension (assuming no reasons exist for that not happening).   Are these happening?

0.25% p.a. is a low fee for that fund size.  So, maybe it's a cut-down service that you are paying for rather than a full advice service.

Albermarle

An ongoing IFA fee is usually minimum 0.5%, do you know why yours is lower.
Maybe as it is mainly all in one fund, there is less work. Did the IFA suggest that Pru fund ?