Ditching a Financial Advisor
Discussion
Some years ago - probably around 2011 - I used a Financial Advisor to transfer out of my final salary pension and into a SIPP. I've been "using" him ever since. I'm perfectly happy with everything that's happened, but I don't feel like he's adding any value at all. He doesn't charge a massive amount (sub 0.5%), but I've got a fairly chunky pension pot so it isn't chicken feed.
The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
omniflow said:
Some years ago - probably around 2011 - I used a Financial Advisor to transfer out of my final salary pension and into a SIPP. I've been "using" him ever since. I'm perfectly happy with everything that's happened, but I don't feel like he's adding any value at all. He doesn't charge a massive amount (sub 0.5%), but I've got a fairly chunky pension pot so it isn't chicken feed.
The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
dunno what size your "fairly chunky pot" is but sub 0.5% could be annually £500 for each £100k in your chunky pot.The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
ask him bluntly "WTF are you actually doing for me?" then bin him and find an alternative every few years for £1k max to reassess and give you a written report or approach eg IM for iirc £450 to do that for you
omniflow said:
Some years ago - probably around 2011 - I used a Financial Advisor to transfer out of my final salary pension and into a SIPP. I've been "using" him ever since. I'm perfectly happy with everything that's happened, but I don't feel like he's adding any value at all. He doesn't charge a massive amount (sub 0.5%), but I've got a fairly chunky pension pot so it isn't chicken feed.
The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
I transferred out a small DB pension a few years back before it got impossible. The financial advisor put it in Royal London 5 and arranged a monthly payment to my bank account.The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
When it clicked he was still taking fees about 15 months later and doing naff all I contacted Royal London who arranged for me to DIY and stopped his fees. I never heard a thing back from him.
I can see it online and if I want to change my withdrawals they do it over the phone.
I'm not sure if this is the same scenario as you.
We also DIY our Investments (and my wifes SIPP through) Vanguard.
I transferred a DB pension out in 2020 and used the financial advisor for a year. When I looked at what I paid in charges for the year I told them I wanted to diy and moved it to Interactive investor which is very cheap for a reasonably sized pot. Withdrawals are easily arranged too and it’s easy to buy a low cost global tracker or replicate what you have in AJ Bell without the fees.
Richonenope said:
Perhaps ask for one last review, as there are some big changes to pension legislation coming in to play post 6 April 2024, with the abolition of the lifetime allowance and a general election coming soon. Threats and opportunities.
See if this isn’t beneficial?
I guess you could then miss out on the next big change and next big change etc once the relationship ends.See if this isn’t beneficial?
Tye Green said:
omniflow said:
Some years ago - probably around 2011 - I used a Financial Advisor to transfer out of my final salary pension and into a SIPP. I've been "using" him ever since. I'm perfectly happy with everything that's happened, but I don't feel like he's adding any value at all. He doesn't charge a massive amount (sub 0.5%), but I've got a fairly chunky pension pot so it isn't chicken feed.
The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
dunno what size your "fairly chunky pot" is but sub 0.5% could be annually £500 for each £100k in your chunky pot.The platform that my SIPP is on is AJ Bell, and the funds are managed by Brewin Dolphin. I'm fairly sure that the setup I have on AJ Bell means that everything needs to be done by my financial advisor, but I've now reached the stage where I'd far rather do it myself. All I do is draw down a variable sum of money once a year to take my total "earnings" up to just below the point where you start to pay 40% tax. I work all of this out myself based on my other income.
Is there anything stopping me from doing this? Will I be missing out on something if I do?
ask him bluntly "WTF are you actually doing for me?" then bin him and find an alternative every few years for £1k max to reassess and give you a written report or approach eg IM for iirc £450 to do that for you
Ah, the old Platform + DFM + IFA setup, I ended up there too. The DFM will likely churn at just under the tier threshold - mine did - and the IFA collects the rent. Add fund charges and you've got four layers of costs eating away at your savings.
Obviously if you approach the IFA he will tell you how terribly complicated it is and how you need him to avoid disastrous mistakes. So how do you escape? In your position I would call AJ Bell, along the lines of 'I've got a SIPP with you that an IFA set up, I want to run it myself, how do I do that please?' AJ Bell can't give you advice but they can give you information.
One transaction a year should be easy to do. Once you escape, make sure all commissions are turned off and check share classes if relevant - you want unbundled/clean funds, as other classes have higher charges to pay the IFA. Every investment will have a 'key facts sheet' which will clearly show its charge.
Your mileage may vary of course, but that's how it worked for me.
As for general pension info, you can get that here
Obviously if you approach the IFA he will tell you how terribly complicated it is and how you need him to avoid disastrous mistakes. So how do you escape? In your position I would call AJ Bell, along the lines of 'I've got a SIPP with you that an IFA set up, I want to run it myself, how do I do that please?' AJ Bell can't give you advice but they can give you information.
One transaction a year should be easy to do. Once you escape, make sure all commissions are turned off and check share classes if relevant - you want unbundled/clean funds, as other classes have higher charges to pay the IFA. Every investment will have a 'key facts sheet' which will clearly show its charge.
Your mileage may vary of course, but that's how it worked for me.
As for general pension info, you can get that here
I have been simmering for a couple of years what the boss pays for IFA-DFM-Platform- trade charges etc , SIPP, ISA, GIA ( split half in offshore ) which turns out to be ~1.3% last year and a touch more year before ( cant remember / bothered checking , another 0.1% ish)
Anyway, not feeling so down about it . Same DFM as above, different platform and diff IFA ( assumed)
I struggle accepting the ongoing IFA charge size , as apart from reporting .....I might say ( if uncharitable ) takes the rent is a good expression.
Anyway, not feeling so down about it . Same DFM as above, different platform and diff IFA ( assumed)
I struggle accepting the ongoing IFA charge size , as apart from reporting .....I might say ( if uncharitable ) takes the rent is a good expression.
PM3 said:
I have been simmering for a couple of years what the boss pays for IFA-DFM-Platform- trade charges etc , SIPP, ISA, GIA ( split half in offshore ) which turns out to be ~1.3% last year and a touch more year before ( cant remember / bothered checking , another 0.1% ish)
Anyway, not feeling so down about it . Same DFM as above, different platform and diff IFA ( assumed)
I struggle accepting the ongoing IFA charge size , as apart from reporting .....I might say ( if uncharitable ) takes the rent is a good expression.
Mine’s not in place yet, apart from an EIS, but the proposal sounds otherwise the same as your wife’s. It has been much more work getting it all together than I expected, but even so I had quite a Gulp! moment when my IFA explained what the ongoing charges would be, and at first I thought his fee was already wrapped up in Brewin Dolphin’s charges! To be fair, he has explicitly stated that I can walk away at any time.Anyway, not feeling so down about it . Same DFM as above, different platform and diff IFA ( assumed)
I struggle accepting the ongoing IFA charge size , as apart from reporting .....I might say ( if uncharitable ) takes the rent is a good expression.
Gassing Station | Finance | Top of Page | What's New | My Stuff