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  • FIRST POST
    • PingEye
    • By PingEye 4th Mar 18, 12:16 PM
    • 7Posts
    • 0Thanks
    PingEye
    Dispensing with IFA
    • #1
    • 4th Mar 18, 12:16 PM
    Dispensing with IFA 4th Mar 18 at 12:16 PM
    I have a pension pot of 70,000 invested in a SIPP as a cautious investor. I am not unhappy with how it is chugging along however my IFA is paid 1% monthly in arrears and this is soon to rise which seems quite onerous for a pot of this size and given that I have very little contact with him. Can I dispense with my IFA and go it alone - I am having difficulty in finding out whether the SIPP can be DIY or is intermediary based only.
Page 1
    • Keep pedalling
    • By Keep pedalling 4th Mar 18, 12:26 PM
    • 5,102 Posts
    • 5,687 Thanks
    Keep pedalling
    • #2
    • 4th Mar 18, 12:26 PM
    • #2
    • 4th Mar 18, 12:26 PM
    I doubt if he is charging that much, 1% pa is more likely with the payments spread on a monthly basis.

    The performance of your SIPP is almost certainly down to your low risk profile. How far off retirement are you?
    • dunstonh
    • By dunstonh 4th Mar 18, 12:47 PM
    • 93,038 Posts
    • 60,430 Thanks
    dunstonh
    • #3
    • 4th Mar 18, 12:47 PM
    • #3
    • 4th Mar 18, 12:47 PM
    With a small value of 70,000 you are not really in IFA territory. Fine for transactional advice but not really something that needs ongoing advice.

    1% is common for small values (typically common for under 100k a or).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • PingEye
    • By PingEye 4th Mar 18, 1:12 PM
    • 7 Posts
    • 0 Thanks
    PingEye
    • #4
    • 4th Mar 18, 1:12 PM
    • #4
    • 4th Mar 18, 1:12 PM
    Thanks, but how do I find out whether my SIPP is DIY - the provider is not responding and the IFA is naturally loathe to answer the question. I am retired already with my only other income being the State pension so approx 60 per month to the IFA is dipping into the fund somewhat.
    • dunstonh
    • By dunstonh 4th Mar 18, 1:40 PM
    • 93,038 Posts
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    dunstonh
    • #5
    • 4th Mar 18, 1:40 PM
    • #5
    • 4th Mar 18, 1:40 PM
    but how do I find out whether my SIPP is DIY
    Name it here or ask them if you can self manage.
    so approx 60 per month to the IFA is dipping into the fund somewhat.
    If you do not value the 60pm then its a waste of money. However, if the investment strategy is outperforming the 60pm then it could be false economy to get rid of them. However, again noting the value, its unlikely many IFAs would run model portfolios on that size. So, that is less likely to be an issue.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Brynsam
    • By Brynsam 4th Mar 18, 1:55 PM
    • 1,161 Posts
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    Brynsam
    • #6
    • 4th Mar 18, 1:55 PM
    • #6
    • 4th Mar 18, 1:55 PM
    As above - who is the SIPP provider? Have you tried ringing them?
    • ProDave
    • By ProDave 4th Mar 18, 2:07 PM
    • 901 Posts
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    ProDave
    • #7
    • 4th Mar 18, 2:07 PM
    • #7
    • 4th Mar 18, 2:07 PM
    SIPP = SELF invested personal pension

    There is a clue in the name that says you can do it all yourself.

    The IFA may be advising you what funds to invest your money in. Without his advice it would be entirely your choice.
    • whatsup7
    • By whatsup7 7th Mar 18, 11:11 PM
    • 87 Posts
    • 26 Thanks
    whatsup7
    • #8
    • 7th Mar 18, 11:11 PM
    • #8
    • 7th Mar 18, 11:11 PM
    SIPP = SELF invested personal pension

    There is a clue in the name that says you can do it all yourself.

    The IFA may be advising you what funds to invest your money in. Without his advice it would be entirely your choice.
    Originally posted by ProDave
    Is that true of all sipp providers, like aj bell for instance?
    • dunstonh
    • By dunstonh 7th Mar 18, 11:30 PM
    • 93,038 Posts
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    dunstonh
    • #9
    • 7th Mar 18, 11:30 PM
    • #9
    • 7th Mar 18, 11:30 PM
    Is that true of all sipp providers, like aj bell for instance?
    Originally posted by whatsup7
    Its true for every investment/provider on the market.

    Either you take responsibility for the investment selection or you pay an adviser to do it for you.

    Some providers may have a default fund but its your choice to go in the default fund. Some providers have (usually poor quality) pre-built in-house options. Again, its your choice if you use those.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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