IFA - personal recommendations sought
Discussion
Hi, I/we are at a point where some good advice is needed.
Just turned 57, really don't want to keep working as I am, having had a heart scare earlier this year, and as I have an 8y.o. daughter. I have the classic mixed bag of a couple of DB Plans, a couple of DC Plans, some cash, some equities, a good amount of property equity, full state pension, wife who hasn't worked for some years who has a DC Plan and a below par state pension.
Classic 'pick the bones of of that please, and tell us what the options are' scenario for an Advisor (we haven't had one for a while since he retired, hence the query).
Any personal recommendations for us please? Based near Bicester in Oxon, but don't mind travelling a reasonable distance to meet the right individual - or they can come to us for better-than-average coffees
Thanks in advance - by all means PM if preferred.
Just turned 57, really don't want to keep working as I am, having had a heart scare earlier this year, and as I have an 8y.o. daughter. I have the classic mixed bag of a couple of DB Plans, a couple of DC Plans, some cash, some equities, a good amount of property equity, full state pension, wife who hasn't worked for some years who has a DC Plan and a below par state pension.
Classic 'pick the bones of of that please, and tell us what the options are' scenario for an Advisor (we haven't had one for a while since he retired, hence the query).
Any personal recommendations for us please? Based near Bicester in Oxon, but don't mind travelling a reasonable distance to meet the right individual - or they can come to us for better-than-average coffees
Thanks in advance - by all means PM if preferred.
Hi John, long time no speak! Sorry to hear about the heart scare and I hope everything is is good now.
My only recommendation would be to try and find one who charges an hourly or fixed fee rather than a percentage (and certainly not an ongoing percentage of your assets).
But before you start paying for advice there is quite a lot you can do yourself for free which is not difficult and will give you a better handle on your situation.
With the DB schemes you need to ask the trustee of each scheme (1) when you can start drawing an income (2) what the starting rate of the income will be (3) what level of indexation is provided (4) what is the level of widows pension payable (5) is there an option to tax a tax free lump sum (6) if so how does that impact on point 2 and (7) what is the cash equivalent transfer value (you might be able to better in income drawdown - though this is usually not the case - and your heart scare my entitle to to an impaired life annuity that could be higher than the scheme funds but with the same level of certainty).
With the DC plans you need to look at the charges and performance and see if you are getting good value for money. It may we easier to consolidate these with one low cost provider into a balanced managed fund.
The same is true with the cash and equities. Are you getting value for money and have you got enough/too much in cash.
Your properties are more straightforward and not really within the scope of a financial adviser anyway.
Finally, are you and your wife doing everything you can to reduce your tax bill (ISA etc.) and use all of your tax allowances. That is something your accountant can also help you with.
Good luk and PM me if you want to chat over any of this off forum.
Cheers mate!
My only recommendation would be to try and find one who charges an hourly or fixed fee rather than a percentage (and certainly not an ongoing percentage of your assets).
But before you start paying for advice there is quite a lot you can do yourself for free which is not difficult and will give you a better handle on your situation.
With the DB schemes you need to ask the trustee of each scheme (1) when you can start drawing an income (2) what the starting rate of the income will be (3) what level of indexation is provided (4) what is the level of widows pension payable (5) is there an option to tax a tax free lump sum (6) if so how does that impact on point 2 and (7) what is the cash equivalent transfer value (you might be able to better in income drawdown - though this is usually not the case - and your heart scare my entitle to to an impaired life annuity that could be higher than the scheme funds but with the same level of certainty).
With the DC plans you need to look at the charges and performance and see if you are getting good value for money. It may we easier to consolidate these with one low cost provider into a balanced managed fund.
The same is true with the cash and equities. Are you getting value for money and have you got enough/too much in cash.
Your properties are more straightforward and not really within the scope of a financial adviser anyway.
Finally, are you and your wife doing everything you can to reduce your tax bill (ISA etc.) and use all of your tax allowances. That is something your accountant can also help you with.
Good luk and PM me if you want to chat over any of this off forum.
Cheers mate!
Hi Julian, thanks for your reply, and apologies for my delayed response - busy time!
I will take you up on that PM suggestion, if I may - I think that each element is in pretty good order tbh, so everything's in an ISA wrapper that can be, tax minimisation is good via our own company, sharing income with wife, but what I perceive I need is someone to help us with the big picture stuff so I can create a definite glide path to 'screw this I'm out of here' time, as it were!
I will take you up on that PM suggestion, if I may - I think that each element is in pretty good order tbh, so everything's in an ISA wrapper that can be, tax minimisation is good via our own company, sharing income with wife, but what I perceive I need is someone to help us with the big picture stuff so I can create a definite glide path to 'screw this I'm out of here' time, as it were!
JulianPH said:
My only recommendation would be to try and find one who charges an hourly or fixed fee rather than a percentage (and certainly not an ongoing percentage of your assets).
Regarding fees, it's a complex one (as has been discussed before!), but main thing is to ensure transparency and that you are happy you are getting value for money. If you decide you do need the services of an IFA, speak to a few, find one that really cares about you, your fears, goals and objectives and creates a plan that allows you to lead the lifestyle you want without fears of running out of money in retirement (or leaving behind too much!). Ignore those that spend too much time waffling on about managing your money. Best of luck.
Derek Chevalier said:
JulianPH said:
My only recommendation would be to try and find one who charges an hourly or fixed fee rather than a percentage (and certainly not an ongoing percentage of your assets).
Regarding fees, it's a complex one (as has been discussed before!), but main thing is to ensure transparency and that you are happy you are getting value for money. If you decide you do need the services of an IFA, speak to a few, find one that really cares about you, your fears, goals and objectives and creates a plan that allows you to lead the lifestyle you want without fears of running out of money in retirement (or leaving behind too much!). Ignore those that spend too much time waffling on about managing your money. Best of luck.
I'm pretty OK in the investment space, but we have a slightly sprawling pensions landscape
That may be right, that may be suboptimal, but what we need to come out of the exercise with is a plan which looks at everything as a whole.There's also the dynamic, as Julian correctly identified, of a heart issue which exercises and focuses the mind like no other
I visited the Regulator this week, and we were chatting about various bad practice. I am working with many major life and pension companies to eradicate bad transfer advice, to improve standards at some pension companies, and to better inform DB scheme members.
One thing that struck me was that trustees have this split personality. On one hand they are being tacitly urged almost, by the employer, to divest themselves of risk and future liability and almost want scheme members to transfer out. Yet on the other hand, they are chronically aware that Miss-selling claims are going to haunt them, so are trying to stop people leaving.
One person said something that struck me “Of course, how do trustees identify those people who should transfer out, but don’t?”. If you genuinely have limited life expectancy, then you should explore the possibility.
Frankly, if you are medically unwell with a heart defect (not ‘just’ physically unwell) consider firing off an email to the trustees (copy in your declared next of kin and solicitor!), advising them of the same, and asking them if they have any suggestions in light of that fact.
Then, if you peg it a little later, there’s an audit trail for your solicitor to ask "why didn’t you tell Mr ‘X’ he may have been advised to transfer instead of his wife enduring a survivor’s pension for the best part of thirty years?".
One thing that struck me was that trustees have this split personality. On one hand they are being tacitly urged almost, by the employer, to divest themselves of risk and future liability and almost want scheme members to transfer out. Yet on the other hand, they are chronically aware that Miss-selling claims are going to haunt them, so are trying to stop people leaving.
One person said something that struck me “Of course, how do trustees identify those people who should transfer out, but don’t?”. If you genuinely have limited life expectancy, then you should explore the possibility.
Frankly, if you are medically unwell with a heart defect (not ‘just’ physically unwell) consider firing off an email to the trustees (copy in your declared next of kin and solicitor!), advising them of the same, and asking them if they have any suggestions in light of that fact.
Then, if you peg it a little later, there’s an audit trail for your solicitor to ask "why didn’t you tell Mr ‘X’ he may have been advised to transfer instead of his wife enduring a survivor’s pension for the best part of thirty years?".
The trustees can’t advise you of course, but if it does transpire that transferring is the right thing to do, at least you have an audit trail to point to, evidencing your seriousness about best intentions. There are many, many more reasons why you shouldn’t transfer out, one of which is the possibility that if you do it because you are unwell and die quite shortly afterwards, you are exposed to the risk of The Treasury coming after your executors, beneficiaries, estate for some cash.
Derek Chevalier said:
Bonefish Blues said:
There's also the dynamic, as Julian correctly identified, of a heart issue which exercises and focuses the mind like no other
Sorry to hear about the ticker and best of luck with getting everything sortedBonefish Blues said:
Yes, I've read the thread, and I've had IFAs previously so that's sound advice. What I think I want is almost a one-off audit and review, and then, depending on the outcome & actions I'd be pretty happy managing affairs myself.
I'm pretty OK in the investment space, but we have a slightly sprawling pensions landscape That may be right, that may be suboptimal, but what we need to come out of the exercise with is a plan which looks at everything as a whole.
There's also the dynamic, as Julian correctly identified, of a heart issue which exercises and focuses the mind like no other
A one-off audit and review sounds like a great service offering that I bet more of us would be interested in. I'm pretty OK in the investment space, but we have a slightly sprawling pensions landscape
That may be right, that may be suboptimal, but what we need to come out of the exercise with is a plan which looks at everything as a whole.There's also the dynamic, as Julian correctly identified, of a heart issue which exercises and focuses the mind like no other
Of course, it would negate some longer-term earning ”opportunity” an IFA might prefer to have with clients.
Interested to hear more if you find someone to offer this: I too am pretty happy managing financial things, but feel that kind of external wiser-head “audit” could be worth paying for!
& good luck with staying in good health for another X years (where X>30!)
Edited by mikeiow on Sunday 9th September 11:13
rockin said:
Ginge R said:
Yet on the other hand, they are chronically aware that Miss-selling claims are going to haunt them, so are trying to stop people leaving.
Any evidence to support that sweeping generalised comment?By the way, it's either "mis-selling" or "Miss-spelling".
After all, they have not sold anything!!!
Also, ever noticed how some financial advisers constantly state they are professionals who provide advice (rather than selling products) and then let their language slip when off-guard and talk about mis-selling... Surely they mean misadvising!
Edited for annoyingly stupid typo!
Edited by JulianPH on Sunday 9th September 13:32
rockin said:
Any evidence to support that sweeping generalised comment?
By the way, it's either "mis-selling" or "Miss-spelling".
Having spoken in the past few days with trustees of three schemes in the biggest twenty five schemes in the country, yes. I would remind you of the context of that statement. I referred to miss-selling. Not that trustees were trying to prevent members leaving unilaterally. I know that you will be aware of the conflicts that many trustees currently face. By the way, it's either "mis-selling" or "Miss-spelling".
Edit - my final contribution, I won’t be party to another angst filled derail. Sorry thus far, OP.
Edited by Ginge R on Sunday 9th September 12:34
Ginge R said:
rockin said:
Any evidence to support that sweeping generalised comment?
By the way, it's either "mis-selling" or "Miss-spelling".
Having spoken in the past few days with trustees of three schemes in the biggest twenty five schemes in the country, yes. I would remind you of the context of that statement. I referred to miss-selling. Not that trustees were trying to prevent members leaving unilaterally. I know that you will be aware of the conflicts that many trustees currently face. By the way, it's either "mis-selling" or "Miss-spelling".
Edit - my final contribution, I won’t be party to another angst filled derail. Sorry thus far, OP.
Edited by Ginge R on Sunday 9th September 12:34
mikeiow said:
A one-off audit and review sounds like a great service offering that I bet more of us would be interested in.
Of course, it would negate some longer-term earning ”opportunity” an IFA might prefer to have with clients.
Interested to hear more if you find someone to offer this: I too am pretty happy managing financial things, but feel that kind of external wiser-head “audit” could be worth paying for!
It shouldn't be too hard for you to find a financial planner to build a plan for you for a one-off fee.Of course, it would negate some longer-term earning ”opportunity” an IFA might prefer to have with clients.
Interested to hear more if you find someone to offer this: I too am pretty happy managing financial things, but feel that kind of external wiser-head “audit” could be worth paying for!
Bonefish Blues said:
And in the spirit of always aking the obvious question, he or she is the same animal as an IFA?
They could be independent (the "I" of IFA) or restricted (although much more likely to be the former in my experience). The main thing is that they prioritise the planning over the investment management of the money (which is very much a commodity). There are a number of very good firms out there but they lack the marketing budget of the traditional asset gatherers.
Gassing Station | Finance | Top of Page | What's New | My Stuff