ISA - Running / Transferring - Fees
Discussion
I have zero knowledge on investments but my mother has handed the running of an ISA she opened for my kids as it seems every FA she's had, has added fees onto it and done very little / nothing with it
So I have an ISA in my name, for the benefit of my children, registered to her address
I'm told that it is currently under performing in various Fidelity "things" and to move it to a Fidelity Global tracker
The value is circa £20k
Is it as simple as contacting Fidelity direct and asking them to move it or do I need a FA ?
I've had a quick look and there are mentions of loads of different types of fees - I just want the Mondeo of the ISA world
Thanks
So I have an ISA in my name, for the benefit of my children, registered to her address
I'm told that it is currently under performing in various Fidelity "things" and to move it to a Fidelity Global tracker
The value is circa £20k
Is it as simple as contacting Fidelity direct and asking them to move it or do I need a FA ?
I've had a quick look and there are mentions of loads of different types of fees - I just want the Mondeo of the ISA world
Thanks
Yes, you can do lots of stuff without an adviser. Look at your last valuation, find the Fidelity phone number and say you want to switch an investment. They'll tell you what you need to do.
Fees - the fund will have an AMC (annual management charge) and if you're on the Fidelity platform, a platform fee. Fidelity have a huge range of offerings, not just their products but many more (and shares).
Fees - the fund will have an AMC (annual management charge) and if you're on the Fidelity platform, a platform fee. Fidelity have a huge range of offerings, not just their products but many more (and shares).
Edited by Simpo Two on Monday 22 November 18:14
As you get your head round things, I'd suggest you do the sums on fees for a fidelity global track and ISA fees vs someone like Vanguard for the ISA and tracker - you may find it is worth moving which company holds the ISA.
Typically equity(shares) investments return an average of say 8% a year with the important caveat that they can significantly diverge from that average for several years in a row up and down.
Let's say inflation is ~3%. That gives you an average real return of ~5%. Even a .5% total fee structure at that point is 1/10 of your real return. This is why chasing down what the total cost of fees is matters so much, although it is rarely emphasised by fee charging institutions.
Typically equity(shares) investments return an average of say 8% a year with the important caveat that they can significantly diverge from that average for several years in a row up and down.
Let's say inflation is ~3%. That gives you an average real return of ~5%. Even a .5% total fee structure at that point is 1/10 of your real return. This is why chasing down what the total cost of fees is matters so much, although it is rarely emphasised by fee charging institutions.
xeny said:
As you get your head round things, I'd suggest you do the sums on fees for a fidelity global track and ISA fees vs someone like Vanguard for the ISA and tracker - you may find it is worth moving which company holds the ISA.
'ISA and tracker'? Isn't the tracker (fund) in the ISA?I'd add that fees for a tracker will be much lower than a managed fund.
The Vanguard platform will only let you hold Vanguard funds, but that's probably not an issue for you. I found them very responsive when I was making enquiries a few years ago.
Also check the cost of holding an investment 'direct' as opposed to on a platform. You probably don't need the extra functionality of a platform.
b
hstewie said:
hstewie said: Check with Fidelity that they remove the IFA "rights" to control the investments.
I don't know the exact name but the IFA may be down on the account too even though it's in your name.
Good point. If you feel you have no need for the IFA, tell Fidelity that you're taking over, and to remove the IFA from their records. They may be talking his fees from your account, so that needs to be stopped asap.I don't know the exact name but the IFA may be down on the account too even though it's in your name.
Simpo Two said:
Good point. If you feel you have no need for the IFA, tell Fidelity that you're taking over, and to remove the IFA from their records. They may be talking his fees from your account, so that needs to be stopped asap.
Yes it seems there are several IFA all taking fees for doing nothingbhstewie said:
hstewie said: Possibly stating the obvious so apologies but rather than just asking Fidelity to remove them I'd make sure your mum has terminated any contract first.
The problem was that mum has many investments and has moved FA many times because most of them seem to be pretty useless, then the last one refused to advise as this was "my" investment not hersI'll take a look at all the points raised, I don't want to become an expert but nor do I want to be paying more than necessary
KTMsm said:
The problem was that mum has many investments and has moved FA many times because most of them seem to be pretty useless, then the last one refused to advise as this was "my" investment not hers
I'll take a look at all the points raised, I don't want to become an expert but nor do I want to be paying more than necessary
Honestly and respectfully if it's "only" £20K I don't see many IFA's being interested let alone at a cost that would make it worthwhile for you (because it probably wouldn't be worthwhile for them).I'll take a look at all the points raised, I don't want to become an expert but nor do I want to be paying more than necessary
If you're looking at a tracker it's as simple as "Fidelity Index World Fund" and done.
The most annoying thing with that is that you'll be paying Fidelity more to hold it for you in platform fees than you are in actual fund fees.
But likewise remember that as it's "only" £20K you're not paying that much in fees to start with and probably not enough to lose much sleep over moving platform just yet IMHO
bhstewie said:
hstewie said: Honestly and respectfully if it's "only" £20K I don't see many IFA's being interested let alone at a cost that would make it worthwhile for you (because it probably wouldn't be worthwhile for them).
If you're looking at a tracker it's as simple as "Fidelity Index World Fund" and done.
The most annoying thing with that is that you'll be paying Fidelity more to hold it for you in platform fees than you are in actual fund fees.
But likewise remember that as it's "only" £20K you're not paying that much in fees to start with and probably not enough to lose much sleep over moving platform just yet IMHO
Exactly - I just want a simple "that one" if possibleIf you're looking at a tracker it's as simple as "Fidelity Index World Fund" and done.
The most annoying thing with that is that you'll be paying Fidelity more to hold it for you in platform fees than you are in actual fund fees.
But likewise remember that as it's "only" £20K you're not paying that much in fees to start with and probably not enough to lose much sleep over moving platform just yet IMHO
Mum's guy won't touch anyone under 100k which I understand is fairly standard
xeny said:
Yes, and I'd expect Fidelity are cheerfully charging a % fee for each.
AFAIK there's no fee for just having an ISA account, just a platform charge. That's either a tiered percentage for funds, or a max of £45 for ETFs and shares. https://www.fidelity.co.uk/services/charges-fees/f...Vanguard are cheaper but I had a big mix of stuff so no use for me.
KTMsm said:
Yes it seems there are several IFA all taking fees for doing nothing
I know a chap who's several K in debt - and still pays an IFA to 'manage' his very small pension.Edited by Simpo Two on Monday 22 November 23:06
You will be able to do everything via their portal. Register online for an account and get the JISA's added. Nice of your mother too et them up but technically she shouldn't have been able to do so as you are asked if you are the childs guardian. This may be a niggle when you want to discuss with the Fund Manager. Edited to say that no doubt the IFA filled out the forms. Good should on making sure you remove the IFA. Years ago when I was a mere pup I had a Fidelity fund set up via an advisor who did the mortgage at the time. I remember looking at the statement and seeing £950/month when i was paying 1k. That's the advisors cut!. I removed that straight away-5% off the top. They are sneaky bds!
ds!Edited by Burwood on Tuesday 23 November 17:54
xeny said:
Simpo Two said:
AFAIK there's no fee for just having an ISA account, just a platform charge.
Given he doesn't hold anything outside the ISA, de facto in this scenario it is a charge for holding the ISA.Perhaps if it's only one fund perhaps he could take it off the platform - but then the AMC might be higher. I once had three different Fidelity funds, one on their platform and two not. Either way it's total costs that matter. He can't move it in specie to Vanguard.
OP, give them a ring and ask about your options and charges in various scenarios. Much easier than reading us all waffling on about it, and you'll know you've got the right answers
Simpo Two said:
I clarify, you mix it up.
Perhaps if it's only one fund perhaps he could take it off the platform - but then the AMC might be higher. I once had three different Fidelity funds, one on their platform and two not. Either way it's total costs that matter. He can't move it in specie to Vanguard.
The goal in the OP was to move it to _one_ global tracker as I read it?Perhaps if it's only one fund perhaps he could take it off the platform - but then the AMC might be higher. I once had three different Fidelity funds, one on their platform and two not. Either way it's total costs that matter. He can't move it in specie to Vanguard.
At that point lowest total of ISA/platform and fund fees surely wins all else being equal, and global trackers are about as commodity as it gets?
markiii said:
No one suggesting transferring to IM
Second post But if he wants a Fidelity fund it's not an option.
xeny said:
The goal in the OP was to move it to _one_ global tracker as I read it?
Then does he need a platform at all? He needs to add up the fees and decide. As I understand it fund charges can be discounted if on a platform so it might be six of one and half a dozen of the other.Edited by Simpo Two on Tuesday 23 November 22:04
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