Drawdown pension advice

meester

dunstonh wrote: »

Why?

You dont see the execution only providers rebating when there is no advice a little or no FOS protection. So, why should an adviser who will carry a lifetime of liability on this have to rebate trail? The only reason I would rebate some of the trail is if it is execution only. I certainly wouldnt on advice.

You can run your business as you choose. But when I go to a lawyer, or a doctor, I pay them as I use their services. I pay for their time. If they are negligent (and they do obviously have considerable liabiltiy), then I sue them. Their liability insurance is paid for out of their hourly rate. If I want better advice, I pay for a better lawyer, or a better doctor.

I don't see any justification for keeping trail commission as a kind of insurance policy for you. Everybody else pays for insurance out of their general revenue.

I appreciate that various people in the industry have historically taken very high charges out of investors' capital and that 0.5% might be low in this context, but it doesn't make it valid to charge for work that isn't necessarily being performed.

Are you not obliged to have liablity insurance to cover you? I am.

BTW, how much time would you spend per year in hours managing a portfolio like this?

There has been no comments made to suggest what sort of portfolio is built. Some of the things you mention are not within the remit of most advisers as they are quoted stocks. You would need a stockbroker on board.

That looks like what the OP has got:

https://www.jbrearley.co.uk/content/dynamic/homepage.asp

samspain_2

Think I make it £9800 up front payment and I'm really not sure what work is involved in setting the drawdown investments up, if he is using an investment provider' I can't see what that will take in terms of expertise!

meester

samspain wrote: »

Think I make it £9800 up front payment and I'm really not sure what work is involved in setting the drawdown investments up, if he is using an investment provider' I can't see what that will take in terms of expertise!

Are you dealing with James Brearley directly/someone who works for them?

Or is your advisor farming it out to them?

samspain_2

If paying more money for better guaranteed returns is possible then I'm sure we would all be happy to pay more, but I'm not sure you can equate it to lawyers and doctors in that way. I just want to know I'm not being conned I suppose, and it isn't easy to know how to avoid that, if I want to compare IFA charges for the work I want can I ask several for quotes as I would if I were having other work done

samspain_2

My IFA says he will deal directly with Brearley

dunstonh

Sounds like Brearley will be running the portfolio. This is known as discretionary fund management. It is typically more expensive at advice level but can utilise a wider range of investments such as shares, investment trusts etc which do not pay any direct trail.

Discretionary fund management has far more reviews.

BTW, how much time would you spend per year in hours managing a portfolio like this?

25 or so.

samspain_2

Anyone any idea how Brearley has performed over the last 7 years? It would be useful to know what sort of track record we are paying for.

meester

samspain wrote: »

Anyone any idea how Brearley has performed over the last 7 years? It would be useful to know what sort of track record we are paying for.

I'm unclear what service you are getting.

Dunstonh seems to suggest that you are getting Brearley's discretionary management service:

https://www.jbrearley.co.uk/content/dynamic/popup_port_man_discretionary.asp

It's impossible to say how good their management is, because it's discretionary - it should be tailored to the indiviual, and they will switch investments on a regular basis as they feel fit.

However from what you have said it seems that Brearley are providing "services for IFAs", per:

https://www.jbrearley.co.uk/content/dynamic/services_IFA_main.asp

Dunstonh may has a better idea what this means, but the subheadings are:

'share dealing, online valuations, portfolio management, ISAs, PEPs and research'

I would have thought that they are just providing stockbroking facilities and the IFA is managing the choice of investments

Perhaps you should clarify? And also question why you should go through the IFA to get the discretionary service, if that is indeed what you are getting, if it is one you could get direct from Brearley.

EdInvestor

Brearley is the in-house stockbroker at Sippdeal, to which the OP could transfer his fund for very low setup fees, take the tax-free cash and then put the rest into drawdown, leaving the money earning interest in the cash fund at first while spending a bit of time figuring out how to invest it.

This is not rocket science, and it's worth spending a bit of time getting to grips with it as the savings are substantial.


https://www.sippdeal.co.uk