Changing IFA

dylanfan

Hi
many thanks to all those who answered my earlier post re my IFA's charges. From your replies it looks like I am being seriously overcharged for arranging income drawdown ( 3% commission amounting to £3900 on top of trail commission ) So, before going ahead I reckon I should change my IFA. My naive questions are - is it easy enough to change IFA ? Is it like changing bank accounts where the new provider makes the arrangments, contacts the other provider and gathers in the relevant papers - or do I have to do that ? Are there any "exit " fees? Would my current IFA hold on to any trail commission or have anything to do with my plans thereafter ?

Or should I bite the bullet and handle my SIPP myself - and if so what would that entail ?

many thanks

Dylanfan

dunstonh

is it easy enough to change IFA ?

yes.

Is it like changing bank accounts where the new provider makes the arrangments, contacts the other provider and gathers in the relevant papers - or do I have to do that ?

In many cases the IFA will write to your providers with a letter of authority template you have signed agreeing that the new IFA should be your agent. This is the nil cost option. Where trail/renewals are being paid, the new IFA would be paid these instead of the old one.

Or should I bite the bullet and handle my SIPP myself - and if so what would that entail ?

Little or no difference in annual management charges and you would have to do research, reviews and switches. It depends if you feel you are up to it and would actually do it.

EdInvestor

dylanfan wrote: »

Or should I bite the bullet and handle my SIPP myself - and if so what would that entail

It would be helpful if you could provide some info about what you already have so we could see how easy or difficult it would be to self manage what is, after all, supposed to be a Self Invested Pension Plan

Who is the SIPP provider?
How is the money invested at the moment?

I think you said elsewhere you would have around 130k left after taking the tax free cash. How much income were you planning to take every year from the SIPP in drawdwon? Has the IFA told you how much income you are entitled to?

Retired_I.F.A.

Shop around IFA's and i eckon you'll find plenty that'll get you into drawdown and be happy to just have the 1/2 tial commission.

1/2% of 130k is £650 a year purely for investment advice that's more than adequate in my book.

dylanfan

Thanks Dunstonh, EdInvestor and Retired IFA

Thanks - sounds like I could probably find another IFA easily enough. I would also clarify charges up-front and see what they would agree to handle for the trail commission ( £1600 last year !) . Would I have to pay a fee for them taking me on board and sorting things out ?

My SIPP provider is a company called EPML ( European Pensions Management Ltd) and I have three Trustee Investment Plans between Scottish Equitable and Legal and General - two in property and the other in a mix of five different funds. In addition there is a Winterthur Life Personal Pension ( protected rights only ) which is also invested in about three different funds. It seems a lot for me to take on myself if I was to manage my own SIPP and without the experience and background I would fear making mistakes. So maybe I will put it in the hands of another IFA - but one with more reasonable charges who is also a bit more up-front ? Does it take long to switch - days, weeks or months ?

Regards

Dylanfan

dunstonh

Does it take long to switch - days, weeks or months ?

days potentially although some may take a week or two.

There may be scope for consolidation as well using a fund supermarket pension.

dylanfan

dunstonh wrote: »

There may be scope for consolidation as well using a fund supermarket pension.

Hi there
sounds interesting - but don't fully understand. What would this entail ?
thanks
Dylanfan