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Savings and Investments thread
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The drawdown pension set up is with Royal London. It’s a question of what fee is fair for a pot of say £1M and what I should expect in terms of service.golfaddick said:
Did your IFA set up your Drawdown plan with HL ? That's very unusual as they are a client-led site rather than adviser-led and I don't believe that he can take an ongoing fee from them.HardyAddick said:
The IFA set up my pension -a Drawdown by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice.
Advisers wont take fees from non-investment assets such as Cash deposits or BTL's.
I'd be very interested in what he proposes to charge you as the company I work for are in the process of changing the fees charged & for almost all my clients this would mean an increase.....some by a big margin.0 -
I'm currently doing one for a client. With Royal London so just need to "turn the tap on" so to speak. I didn't actually charge a fee in this case as the ongoing was only 0.3% so agreed to increase it to 0.5% in lieu of a fee (fund was way lower than £1m though - around a quarter of it !). But usually if the pension was already in a pension that could facilitate drawdown then I would charge a fee of around £500-£750 to start the drawdown process as there is a lot of work involved (FCA requirements as well as Network/Company procedures).HardyAddick said:
The drawdown pension set up is with Royal London. It’s a question of what fee is fair for a pot of say £1M and what I should expect in terms of service.golfaddick said:
Did your IFA set up your Drawdown plan with HL ? That's very unusual as they are a client-led site rather than adviser-led and I don't believe that he can take an ongoing fee from them.HardyAddick said:
The IFA set up my pension -a Drawdown by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice.
Advisers wont take fees from non-investment assets such as Cash deposits or BTL's.
I'd be very interested in what he proposes to charge you as the company I work for are in the process of changing the fees charged & for almost all my clients this would mean an increase.....some by a big margin.
As I said earlier, I usually charge 0.5%pa as an ongoing charge, although for a fund of £1m (plus anything else you might want managing) I would probably reduce that a bit.
In terms of service - the FCA say that if you are paying an ongoing fee you should (as a minimum) get an annual meeting where your investments (and the platform/provider) are reviewed to see if they are still suitable for your needs and continue to meet your attitude to risk. This will probably necessitate checking if there has been any changes to your personal & financial situation as well as completing a new attitude to risk questionnaire. Also, during the 12 months between meetings, your adviser should be available to answer any questions you may have or to make any changes to your portfolio and facilitate any ad-hoc withdrawals in a timely manner.0 -
See what the advisors says and report back here!! Ultimately advice comes at a cost you just need to satisfy you feel what they deliver is worth the ‘investment’.HardyAddick said:
The IFA set up my pension -a Drawdown by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice.I know finances aren’t everyone’s cup of tea, but what exactly are you looking for by way of advice on the pensions and ISA? Fund selections? Provider etc?0 -
Yes, albeit there are slightly different influences at work in the ex-commie countries.bobmunro said:PragueAddick said:
Czechia isn't a benchmark for Europe because it still has the Communist legacy, and because less people are well-off by UK standards, but most of Europe operates more like here than like the UK, AFAIK. Yes, annuities exist as a means to access your capital, but the basic system has been designed as a top-up to the State pension which is pretty modest too. There are a limited number of licensed pension providers for the system, a paltry mix of crap funds, and very high charges compared with the UK. I think that is a similar story in most EU countries. I doubt that, let's say, Schalke 04 Life has a Savings and Investment thread😉. Feyenoord Life might, though, the Dutch are probably the closest to us in being used to managing their own portfolios. Fidelity had a Dutch version of their Fund Supermarket, but I think they have closed it, also in the UK?golfaddick said:
What do the locals do then ? If the funds in Czech pension are "poor" do they stay invested, take it all out or buy an annuity out there ?PragueAddick said:
I can’t, mate. A competent IFA 😉😉😉looked into it for me and found that none of the major players will touch a non-res.golfaddick said:
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Interested to know what other countries do.That's surprising, especially as Czechoslovakia, as was, split from the Soviet Union getting on for forty years ago.So no real incentives to provide for retirement? And you say most of Europe is the same?I have to reluctantly concede that the British lead in this is a result of the Thatcher push to a “share-owning democracy”. There were also negatives within that push, especially privatising utilities. But as a result I was already gently investing in funds in the late 80s, so when I opened my SIPP in the mid-90s I understood how to work with it. Most Europeans have been slower to face up to the issues of how the State can provide for them as the population ages. They have just assumed it’s the State’s job to solve the problem. My foreign friends whom I have met out here often have company pensions, so it doesnt feature on their agenda. Smart Czechs who have twigged the problem have responded to it by investing in property, which results in Prague dwellings being almost as unaffordable for ordinary people as London’s are.1
