Transferring FSAVC to SIPP

[Jazzer]

Hi, I need some advice and hope you can help.

I have a FSAVC, going back the way due to high charges and poor investment strategy.

I'm contemplating transferring out to a SIPP and will be speaking with an IFA in due course.

There seems to be little transparency about SIPP charges, making providers hard to compare.

I'm looking to transfer around £50K and maximise monthly contributions.

Can anyone recommend a good provider or offer words of wisdom?

Jazzer

[Ginge R]

Jazzer,

Have a beauty parade, chat with a few advisers - it shouldn't cost you anything and you'll get a better feel for things.

Ask them what type of pension is most suitable for you; traditional SIPP, personal pension etc, and ask them why. Crucially, ask them to talk you through the reduction in yield, the impact of costs on your fund.

There are some great pensions out there (cheap really isn't always the best) and there are some absolute dogs. Which one you'll opt for will ultimately depend on the specific detail that you exchange with someone such as adviser, one to one.

[Jazzer]

Thanks Ginge.

I have a solid final salary pension in place, so I can afford to be a bit adventurous with the investment strategy.

Could you possibly suggest some better providers so that I can go and do some homework on them?

[Ginge R]

I guess they're all pretty much the same in many ways; the trick is in determining what functionality you might need now - and in the future. Take a look at Aviva, Scottish Widows, Royal London (through IFA only), Aegon, Stranded Life, Axa, Friends Life, Legal and General, LV etc.

[Jazzer]

Thanks for your help, I'll look into your suggestions further.

[Ozzie Osmond]

Jazzer said:

FSAVC, going back the way due to high charges and poor investment strategy.

If you say which provider you're with and what funds your invested in you may get some initial guidance on here.

[JulianPH]

Jazzer said:

Hi, I need some advice and hope you can help.

I have a FSAVC, going back the way due to high charges and poor investment strategy.

I'm contemplating transferring out to a SIPP and will be speaking with an IFA in due course.

There seems to be little transparency about SIPP charges, making providers hard to compare.

I'm looking to transfer around £50K and maximise monthly contributions.

Can anyone recommend a good provider or offer words of wisdom?

Jazzer

Hi Jezzer

SIPP charges are an absolute nightmare. One reason is that there are so many options (a good thing) and another being that SIPP companies seem to use this to hide the true charges behind this (a very bad thing).

What are you looking for... Will help if I can.

[Jazzer]

Hi!
It's a unit linked FSAVC with Abbey Life, worth about £55K.
There is a 5% bid-offer spread, plus an annual management charge of around 0.75%.
Despite putting in £2K in the last year, it is actually worth less than a year ago.
I believe it's in the Abbey Managed Series Three fund.
I'm aware the charging structure on these things is not good for growth.....I wish to transfer to a more efficient fund, where the capital will grow faster. I aim to maximise monthly contributions, I top of the transfer value of about £46K.....and I'd like to dip into it when I'm 55.
I'm happy to retain the services of a good IFA.
Thanks for the help chaps.
Jazzer

[JulianPH]

Jazzer said:

Hi!
It's a unit linked FSAVC with Abbey Life, worth about £55K.
There is a 5% bid-offer spread, plus an annual management charge of around 0.75%.
Despite putting in £2K in the last year, it is actually worth less than a year ago.
I believe it's in the Abbey Managed Series Three fund.
I'm aware the charging structure on these things is not good for growth.....I wish to transfer to a more efficient fund, where the capital will grow faster. I aim to maximise monthly contributions, I top of the transfer value of about £46K.....and I'd like to dip into it when I'm 55.
I'm happy to retain the services of a good IFA.
Thanks for the help chaps.
Jazzer

Hi Jezzer

Abbey Life are not exactly regarded as being at the cutting edge of investment management!

I think getting a good IFA is the first place to start as you need to make sure there are no additional benefits with Abbey Life that you would lose and get a proper recommendation on the best SIPP/Portfolio to move into.

Of course you could do all of this yourself but then you would be responsible for risk assessment/asset allocation/underlying investment select and the ongoing monitoring of this. Some people love this, some people are daunted by it. Always your choice though.

Ginge R (above) is an IFA otherwise know as Al at www.fiveraday.co.uk and I am sure he would be able to help.

I can also highly recommend Simon at www.thepensionreviewbusiness.com as this is exactly what they specialise in (but must state that I have a connection to this company). As for Simon if you call them, all the review work is free, you only pay them a fee if you choose to proceed with their recommendation.

[Jazzer]

Thank you so much for the help.

There is nothing to lose by transferring out, it's just where to go.

SIPPS charges are far from transparent.

I've contacted Ginge and will see how he can help.

[JulianPH]

Jazzer said:

Thank you so much for the help.

There is nothing to lose by transferring out, it's just where to go.

SIPPS charges are far from transparent.

I've contacted Ginge and will see how he can help.

Hi Jazzer

No worries, try The Pension Review Business too, there is no cost unless you want to take out their recommendation.

This will give you two options to compare side by side - including all costs.

Have a great Easter,

Julian

[Jazzer]

Thanks again for the suggestions.

I'm just waiting on a call back from Simon, then we'll set the wheels in motion.

Jazzer
(Feeling better off already!!!)

[Jazzer]

Simon, from the Pension Review Business, is now on the case.

All very professional, efficient and transparent, so refreshing in such a murky world.

I will keep you informed of the progress and outcomes.

Jazzer

[Jazzer]

Thanks to Ginge too for the help.

Great stuff!

[Ginge R]

Jazzer, really nice chatting. Julian, thanks for the kind reference.

One of the things we touched on, and more generally, if anyone is caught in an old style pension product and wants to get out despite punitive exit costs, it may be worth keeping your powder dry for a little longer yet.

[Ginge R]

Et voila.

http://www.professionaladviser.com/professional-ad...

It might be worth getting in touch with the thievi.. er, your particular company in question asking if their policy remains extant or is at least under review.