took advice on here and spoke to a Financial Advisor

dunstonh

Their charges are damned expensive. Many firms have decency caps of around £5k-£10k.

Are they are larger firm or a small one?

A common model with larger firms is that they keep a good chunk of the fee whilst the adviser gets a smaller portion of it. In our area, quite a few firms work on the basis that if the adviser brings in the business they keep 80% and the firm gets 20%. But if the firm gives the client to the adviser, then the adviser get 20% and the firm keeps 80%.

What you typically find with firms that appear on the various internet site listings is that the firm keeps 80% and the adviser gets 20% (or variations around that). Plus, with a couple of the internet sites, they take a chunk as well. So, the fees are higher to reflect the costs of distribution.

A smaller "independent" IFA (i.e. not part of a group so doesn't need to share income) should come in cheaper.

With the fees you are being quoted, you are not getting value for money and you are either better off staying put or finding an IFA offering around 0.5% p.a. with no more than £5k up front.

jimboger1

https://forums.moneysavingexpert.com/discussion/comment/81875780#Comment_81875780

https://www.mapfinances.co.uk

thanks for your input, they are certainly not a JP Morgan, and they contacted me after I responded to an ad on 'unbiased'

cloud_dog

@jimboger1 name the adviser, you may allow others to offer you a broader opinion?

For my simple head, the charges are horrendous (albeit 1% all in ongoing charges could appear quite reasonable).

Using your own numbers (and I'm not commenting on the relativity of the comparison), but aren't you ignoring the adviser cost in looking at the performance numbers?

dunstonh

thanks for your input, they are certainly not a JP Morgan, and they contacted me after I responded to an ad on 'unbiased'

unbiased is no longer an IFA directory. It's a lead generation site for mostly regional and national FAs and Wealth Management firms. You can still get it to appear like a directory by going into it a different way and unticking a tick box, but if you go in the normal way, it's effectively selling your details to the firm and will also show firms willing to pay.

Most IFAs no longer pay to be on unbiased any more.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81875815#Comment_81875815

He shared a link in the post immediately before yours, perhaps cross-posted?

QrizB

MAP do claim to be independent on their "About" page:

https://www.mapfinances.co.uk/about-map/

wjr4

they have a very old school charging structure and are very expensive!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81875773#Comment_81875773

I could find hundreds of funds that have performed worse, and hundreds of funds that have performed better.

I would suspect that the SW funds have more UK investments in them than the AJ Bell funds, but just guessing.

US share market has led the way for the last few years, although the UK did well last year.

One thing is more certain though, higher growing funds tend to come down with more of a bump when the markets turn downwards. That is regardless of if you have an advisor, or pick them yourself.

FrugaiMacDugal

Dazed_and_C0nfused Today at 12:54PM

''Not quite seeing how AJ Bell fit into things though if it is SJP?''

jimboger1 Today at 2:47PM

''they are certainly not a JP Morgan.''

Are you getting confused with SJP and JP Morgan?

You can swear at me if you want if it helps relieve stress and makes you feel better.

ian16527

Looking at the returns you could open an AJ Bell or even cheaper Vanguard SIPP, and use VLS80 (80% shares) which has similar results to what the company are offering.

VLS 80 Your FA fund

1yr 11.2% - 13.74%

3yr 38.3% - 33.2%

5yr 50.4% - 47%

This would cost 0.2% fund charge which you don't see and £375 pa with Vanguard (0.15% capped at £375) platform fee.

But this is a higher risk fund than what you have quoted and may be above your risk level. VLS60 (60% stocks) has a similar return as your current funds

VLS 60

1yr 9.4%

3yr 29.9%

5yr 32.3%