Need a fixed fee IFA for sipp drawdown advice

TheSecretLemonadeDrinker

Hi, I’m in the fortunate position of having a sipp which will provide the 25% tax free max LTA amount.

I would like to pay a fix fee to an IFA, who can give me the pros and cons of how manage a drawdown strategy ,taking into account my specific circumstances.

Can anyone recommend an IFA they have used ? I spoke to a couple and they both wanted a percentage of the portfolio and I specifically don’t want this as am capable of managing it myself on a low cost platform.

Any help appreciated into how I find a suitable IFA.

Ibrahim5

How exactly do you think this will help the IFAs business? The IFA needs funds under management. Fees year after year. Sell their business and retire. You are no use to them.

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81974057#Comment_81974057

OP you will find this poster has rather fixed ideas about IFA's.

What you are asking for is possible, but not all IFAs will offer it From reading here small firms may be more flexible in their approach. Try looking for firms local to you on Google or similar, but then check that they are authorised / registered before phoning to find out if they can offer what you want.

https://www.fca.org.uk/firms/financial-services-register

MeteredOut

https://forums.moneysavingexpert.com/discussion/6665351/need-a-fixed-fee-ifa-for-sipp-drawdown-advice

I can't recommend an IFA, but for what you're after, have you considered any of the online calculators (eg, Guiide) where you put in all your details, and it gives you output based on various scenarios.

Or, if you are handy with spreadsheets, there are quite a few available that do something similar.

daveyjp

Youtube has plenty of videos from advisers which will give you an initial understanding of drawdown strategies to maximise income and minimise tax.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81974542#Comment_81974542

Also some of the pension providers themselves have good info on their websites. Some of them also offer paid for one off financial advice, although they will only ever recommend their own products of course.

Linton

https://forums.moneysavingexpert.com/discussion/6665351/need-a-fixed-fee-ifa-for-sipp-drawdown-advice

It seems to me that the big problem with what you want is that the advisor is financially liable for the advice given. Merely providing a strategy for you to follow could be a greater risk for the advisor and his insurer than if he implanted it himself.

If you want to do all the management yourself from the outset self education is in my view the best approach. An alternative would be to ask the IFA to manage everything until you are confident you could takeover.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81974858#Comment_81974858

AFAIK, some advisors are OK to do one off advice. I think @dunstonh has said he does quite a few .

They would only be liable if the advice was wrong- if the client did not follow it then that would be their problem.

I think also it is often not just 'one off', but further reviews later down the line often occur.

dunstonh

AFAIK, some advisors are OK to do one off advice. I think @dunstonh has said he does quite a few .

You tend to find the small local general practitioner IFA firms have no issue with transactional. Nationals and regionals tend to be more about expanding assets under management and don't like transactional.

What the OP is after is possible but there are issues:

1 - The fee would be VATable. (intermediation is non-vatable but there is no intention to purchase a product and that means VAT comes into play)

2 - Nowadays, software is increasingly integrated, either directly or through APIs. So, platforms, providers, MPS etc available to IFAs have their data either on the software or easily ported through. DIY platforms don't appear on that and a bespoke DIY portfolio would require manual input. So, I would expect any fee for the work to be higher because of the extra time it will take to manually input everything.

3 - DIY platforms do not produce any of the regulatory documentation that is needed for advice. So, the advice would need a lot of limitations put in place and would actually make it closer to guidence.

Most of the small independents I know are working above capacity and I can imagine that many just wont be interested in giving regulated advice in this scenario because of the faff involved and the higher risks involved. Some may be open to offering generic guidence.

Linton

https://forums.moneysavingexpert.com/discussion/comment/81974912#Comment_81974912

In raising the question of the risk for the adviser I was not so much concerned about the one-off nature of the engagement as about the provision of a strategy which the OP could use to manage his retirement finances for the long term future despite possibly having a lack of understanding of the issues that could be involved.

One-off transactional advice would usually seem to be about implementing a specific short term objective like transferring a pension or initially setting up an investment pot. If the OP personally implemented and managed a portfolio on the basis of necessarily incomplete strategic advice from a regulated adviser where would the liability lie in the event of a major failure?

That is why I believe the focus should be on personal education and feel that using an IFA could be problematic. I would be interested to know whether there is a way to avoid the issue.

LHW99

3 - DIY platforms do not produce any of the regulatory documentation that is needed for advice. So, the advice would need a lot of limitations put in place and would actually make it closer to guidence.

is this an area where the proposed / new "Targeted Support" could be an answer?