Starting up a Pension with a IFA?

jks01

Hi everyone,

I want to start a pension scheme but I don't know what I should be looking out for. I'm worrying if someone could point me into the right direction.

I have discussed some of the basics with an Independent Financial Adviser, who said he isn't charging a fee for his services.

I'm wondering if I should get a second opinion before continuing and if so who would I need to go to.

EdInvestor

What has the IFA suggested?

dunstonh

I'm wondering if I should get a second opinion before continuing and if so who would I need to go to.

Another IFA?

However, you will probably get a different response as investing is about opinion and you may say things differently to the other adviser which gives them a different opinion of you.

whiteflag_3

jks01 wrote: »

Hi everyone,

I want to start a pension scheme but I don't know what I should be looking out for. I'm worrying if someone could point me into the right direction.

I have discussed some of the basics with an Independent Financial Adviser, who said he isn't charging a fee for his services.

I'm wondering if I should get a second opinion before continuing and if so who would I need to go to.

Why?

Whats the problem with the IFA?

jamesd

jks01, if you have any reservations about this IFA you should try another.

For a second opinion you could also describe your situation, objectives and attitude to risk (how much down movement you'll accept in a year - 20% or more is really best for greatest long term benefits, but you have to be able to sleep at night). Then say what the IFA suggested and some people here may comment on whether it looks sensible.

As well as fees you should discuss the level of commission being taken. This is variable and some will charge more than others. Commonly the IFA might take 3% initial commission and 0.5% a year, paid for out of an initial charge on the investments and the annual management charge for the investments. Sometimes it can be best to pay a fee instead of this, or to have a fee and use the commission to reduce or eliminate it. Which is best depends on how the numbers work out in your specific situation, what services you want and how much your contributions will be each month (since the IFA really needs higher commission percentage for lower contribution levels to pay the same for the time involved in the work).