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    • bigalxyz
    • By bigalxyz 8th Mar 18, 12:00 PM
    • 52Posts
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    bigalxyz
    Pension Planning...
    • #1
    • 8th Mar 18, 12:00 PM
    Pension Planning... 8th Mar 18 at 12:00 PM
    Hello forum,

    I'm in the middle of having a close look at my pension arrangements to look at the pros & cons of various options available to me.

    I've got a number of DB (final salary) and DC pension pots.

    My first thought was that I should leave the DB stuff where it is, and concentrate on the pros & cons of transferring my DC pots into a suitable low cost SIPP arrangement. Possible expense savings & more flexibility, etc.

    However I'm now thinking of looking at transferring out of the DB pots as well. Controversial topic and I gather some people have been given very iffy advice on this. In my particular case though (48yo, in quite poor health and unmarried), the value to me of the future DB pension might be quite a lot less than for the typical 48yo scheme member, which might tilt things in favour of a move out.

    A reputable IFA has quoted 2,000 for a full review of all this stuff (and various "lifestyle planning" type projections). I'm not sure if this is a competitive price - does anyone have any thoughts? At any rate I gather than for DB pots > 30k (which mine all are), IFA advice is mandatory before transferring out, so the option to weigh up the odds myself & make my own decision doesn't exist - so I'm probably going to have to pay *someone* a four figure sum!

    Is 2k a sensible price for this sort of thing?

    (IFA also punted other fees going forward for investment advice, etc. but I'll give all that a miss - I'm quite confident in my ability to do that stuff myself)

    Does anyone have any particular IFA recommendations (in terms of competitive prices and/or good quality advice)?

    Grateful for anybody's thoughts/comments.

    Thanks,
    A.
    Last edited by bigalxyz; 08-03-2018 at 12:40 PM.
Page 2
    • dunstonh
    • By dunstonh 12th Mar 18, 6:27 PM
    • 93,034 Posts
    • 60,418 Thanks
    dunstonh
    Update: have found an IFA offering to advise on my 3 DB schemes for a total fee of 3,000. No obligation to then have him manage things thereafter - quite happy to see me set up my own SIPP if transfers are deemed worthwhile. Progress, perhaps...(still not cheap though!).
    Originally posted by bigalxyz
    That is cheap.
    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.
    • justme111
    • By justme111 12th Mar 18, 7:56 PM
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    justme111
    on reading your thread the first advisor comes across as not honest - not stressing that 2k is for analysis only and then implementation would be 5 k. I would not go with them just because of it even if fhey were not more expensive.
    • bigalxyz
    • By bigalxyz 12th Mar 18, 8:04 PM
    • 52 Posts
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    bigalxyz
    That is cheap.
    Originally posted by dunstonh
    Well...I haven't found anything cheaper (and I suspect I won't) so in a sense you are correct! Will try to speak to him to discuss in more detail later this week.
    • bigalxyz
    • By bigalxyz 12th Mar 18, 8:06 PM
    • 52 Posts
    • 0 Thanks
    bigalxyz
    on reading your thread the first advisor comes across as not honest - not stressing that 2k is for analysis only and then implementation would be 5 k. I would not go with them just because of it even if fhey were not more expensive.
    Originally posted by justme111
    Yeah I did feel a little bit irked by that. He gave up the full pricing info but not without being pressed a bit, which was disappointing.
    • Peter314
    • By Peter314 13th Mar 18, 9:44 AM
    • 31 Posts
    • 24 Thanks
    Peter314
    Update: have found an IFA offering to advise on my 3 DB schemes for a total fee of 3,000. No obligation to then have him manage things thereafter - quite happy to see me set up my own SIPP if transfers are deemed worthwhile. Progress, perhaps...(still not cheap though!).
    Originally posted by bigalxyz
    What if your IFA advises that the transfers are not worthwhile? If you choose to go ahead and do it anyway, will they be prepared to sign something to say that they have given you advice?
    • bigalxyz
    • By bigalxyz 13th Mar 18, 11:54 AM
    • 52 Posts
    • 0 Thanks
    bigalxyz
    What if your IFA advises that the transfers are not worthwhile? If you choose to go ahead and do it anyway, will they be prepared to sign something to say that they have given you advice?
    Originally posted by Peter314
    Unsure at this stage but I'm hoping to speak to him a few days and this is something I'll be asking him about.
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 13th Mar 18, 12:21 PM
    • 5,110 Posts
    • 30,677 Thanks
    Blackbeard of Perranporth
    Well...I haven't found anything cheaper (and I suspect I won't) so in a sense you are correct! Will try to speak to him to discuss in more detail later this week.
    Originally posted by bigalxyz
    I will give you something that is free about your DB scams. Leave them where they are and I'll take your 2,000!


    My SIPP that I run is growing with contributions and market related performance. It moves daily. At the beginning of February it went on a slide, yet I bated my breathe. Today it has regained most of its losses for that correction. can you bear to do this?


    Also, some adviser when he presented his skill to me, told me that every year I should equalise my funds! My funds drift during the year by around 10% against each other, yet today, one pension is within 1% of each fund as per payment. The side running ISA has one fund last year that has well performed, and two that since February this year under performed, I have kept them running, as overall, the three funds have grown around 9% this year. Can you bear to do this as well?


    If you are not prepared to play the market for the long term pension wise, then ... pay for advise, and it will not come cheap!
    Commemorate Celebrate Inspire
    #RAF100 A century of service!
    • lisyloo
    • By lisyloo 13th Mar 18, 12:30 PM
    • 21,877 Posts
    • 10,581 Thanks
    lisyloo
    pay for advise, and it will not come cheap!
    I pay 0.5% and get institutional rates on charges, so it doesn't have to be expensive.
    I get a review every 3 months and ad-hoc if required.

    I am very happy to pay 0.5% as the gains could be higher but more importantly the diversification (that I could not provide) provides a great deal of safety.
    As my SIPP is diversified worldwide then it falls less dramatically when events hit a a certain country or region and if sterling falls some regions may fall but some will benefit.
    It would be very difficult for an individual to replicate the knowledge worldwide.
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 13th Mar 18, 1:12 PM
    • 5,110 Posts
    • 30,677 Thanks
    Blackbeard of Perranporth
    As my SIPP is diversified worldwide then it falls less dramatically when events hit a a certain country or region and if sterling falls some regions may fall but some will benefit.
    It would be very difficult for an individual to replicate the knowledge worldwide.
    Originally posted by lisyloo
    Most funds have a breadth of stocks and bonds. The fund managers run these quite well for me, and I read the paper to get suggestions. I don't change at some scammers whim!


    The last adviser to me suggested I should equalise my funds every year! Guess what, I have not done so. My main pension still varies from 10% divergence to 1% over the years. I have only see growth in negative amounts in 1987 and 2008, which were regained some months later. Not once have I considered cutting and running.


    As for my ISA, the divergence this year is a bit sharper than normal, but overall, this years top fund maybe next years under performer, yet I do not rush to put my money into the favourite, forsaking the mix.


    Each to their own, and each has a differing financial obligation to use their funds for. Myself, I was stung by an endowment that failed, and I now take 20 a quarter and place bets, it provides more fun, sometimes I win and get a meal out and it is a far more exciting that lining the pocket of the insurance company!
    Commemorate Celebrate Inspire
    #RAF100 A century of service!
    • lisyloo
    • By lisyloo 13th Mar 18, 1:16 PM
    • 21,877 Posts
    • 10,581 Thanks
    lisyloo
    Each to their own
    Agreed.
    I prefer not to have to worry about it at all in the same way that I prefer not to service my car. It's all down to how you want to spend your time.
    I know that many people really HATE deally with finances and lose out as a result of doing nothing. Those people would benefit from paying someone else to do it rather than neglecting it completely.
    Lining someone else's pocket can sometimes be worthwhile. It depends what the likely alternative is. Doing it yourself requires constant vigilence and only people who actually enjoy it are going to keep that up effectively.
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