Retiring

sky tot said:
I had a zoom meeting last week with a FA . First meeting is free , and then if you use them he gonna charge 1.5% of my wife’s pension value .. She has 6 pensions accumulated through her working life . I’ve give him the plans to chase up valuations and gonna take it from there
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I have never used an IFA so I don't know the current rates, but unless you're doing something incredibly complicated, 1.5% seems incredibly high?

What are they charging that much for? Are they putting your wife pension into an actively managed fund?
 
frothy said:
I will send you my Bank sort code, put into my account and i will look after it for you I promise
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That's cool, will you send your account number and password too so I can check it got there safely
 
Don't think i can do it. Get bored over a weekend if not challenged. Have a few new business things going aside from the Apartments which i may work on more in coming years. Looking to get on holiday 5 days a month every month from now on - that will do me for a few years.
 
Manchester33 said:
I have never used an IFA so I don't know the current rates, but unless you're doing something incredibly complicated, 1.5% seems incredibly high?

What are they charging that much for? Are they putting your wife pension into an actively managed fund?
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It’s not high at all (value dependent obviously). There will be well over 20 hours of work in transferring 6 DC’s and then they have PI Insurance etc on the advice.

I recently transferred a DB pension for a client after they’d previously been quoted 2% of the value (which was over £1.25m) just to even give the advice (which could have still been a no) and they wanted the cheque before they wrote the report.

If the transfer went ahead they wanted another 1% initial and 1% pa ongoing.
 
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Manchester33 said:
Well, you're retired which is something that millions of people won't achieve now! So you've definitely done something right.
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Thanks for reply. Draw down options were not available and pension funds not transferable so frozen.
In fact the whole process of checking for guarrenteed rates and transferring funds to better rate options (for annuities) was made difficult by offers lasting less than a week yet transfer times taking 2 or more weeks.

Yes I am now claiming my own money back in all cases here in Almeria (paying Spanish Income Tax) but am plagued by a annual letters from them asking me to verify I am still alive. Actually they claim money laundering as a reason but we know what they mean.
 
give it to gordon said:
How many money do I need ?!! Well my rent is 900 a month ! So would need around 1600 a month, ( that's cheap for the area ) but cant see that being possible to be honest. I have another 5 yrs before the state pension
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There is a crypto stable coin that currently pays between 18-20% a year. I know it sounds too good to be true but it’s pegged to the dollar.
 
Manchester33 said:
I have never used an IFA so I don't know the current rates, but unless you're doing something incredibly complicated, 1.5% seems incredibly high?

What are they charging that much for? Are they putting your wife pension into an actively managed fund?
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Thanks for replying. They haven’t actually come back yet with any recommendations but he did suggest all 6 going in 1 pension . Mine I think is quite simple having had 1 personal pension since I was 23 now I’m 56 .. There’s no way I will be paying 1.5% . The main reason to speak to the FA was wether to invest our surplus cash ( finish our mortgage end of month) in my pension or bump some into Mrs Tots . I will wait and see what he suggests
 
SWP's back said:
It’s not high at all (value dependent obviously). There will be well over 20 hours of work in transferring 6 DC’s and then they have PI Insurance etc on the advice.

I recently transferred a DB pension for a client after they’d previously been quoted 2% of the value (which was over £1.25m) just to even give the advice (which could have still been a no) and they wanted the cheque before they wrote the report.

If the transfer went ahead they wanted another 1% initial and 1% pa ongoing.
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Yea he did mention 1% per year management.
 
SWP's back said:
It’s not high at all (value dependent obviously). There will be well over 20 hours of work in transferring 6 DC’s and then they have PI Insurance etc on the advice.

I recently transferred a DB pension for a client after they’d previously been quoted 2% of the value (which was over £1.25m) just to even give the advice (which could have still been a no) and they wanted the cheque before they wrote the report.

If the transfer went ahead they wanted another 1% initial and 1% pa ongoing.
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Wow - I'm in the wrong profession!

I've got it quite sweet in my current job, so don't think I'd ever change. But I've genuinely always wanted to get into being an IFA - just don't think I have the tolerance to go through all the red tape involved though! :')
 
sky tot said:
Thanks for replying. They haven’t actually come back yet with any recommendations but he did suggest all 6 going in 1 pension . Mine I think is quite simple having had 1 personal pension since I was 23 now I’m 56 .. There’s no way I will be paying 1.5% . The main reason to speak to the FA was wether to invest our surplus cash ( finish our mortgage end of month) in my pension or bump some into Mrs Tots . I will wait and see what he suggests
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As SWP has said it's not an extortionate rate, and I would definitely heed his advice before taking mine (do your own research and all that jazz).

But in the grand scheme of investing, 1.5% is a lot when you consider the 4% rule. There's essentially no evidence to suggest the average actively managed fund does any better than the market and when you consider the costs, they often perform worse than your average index fund.

I've attached a flow chart that does a really good job of explaining what to do with your surplus cash. It's the best one I've seen for this type of discussion.

If you're happy with it I'll only charge you 1% of your entire retirement fund :P
 

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Manchester33 said:
As SWP has said it's not an extortionate rate, and I would definitely heed his advice before taking mine (do your own research and all that jazz).

But in the grand scheme of investing, 1.5% is a lot when you consider the 4% rule. There's essentially no evidence to suggest the average actively managed fund does any better than the market and when you consider the costs, they often perform worse than your average index fund.

I've attached a flow chart that does a really good job of explaining what to do with your surplus cash. It's the best one I've seen for this type of discussion.

If you're happy with it I'll only charge you 1% of your entire retirement fund :P
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Cheers pal
 
Manchester33 said:
But in the grand scheme of investing, 1.5% is a lot when you consider the 4% rule. There's essentially no evidence to suggest the average actively managed fund does any better than the market and when you consider the costs, they often perform worse than your average index fund.
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The 1.5% isn’t anything about the fund mate. It’s the advice and administration of consolidating 6 pensions into 1. And it’s a one off thing.

It’s obviously cheaper to do it yourself, same with decorating your own house or building your own extension.

If the total value of the six pensions is, say, £150,000 then he’s getting a steal. I personally wouldn’t be doing it for less than £6,000 gross. As my share of that would just about make it worthwhile. I’m not taking the micky there or playing billy big bollocks, just trying to put it into perspective. And I am very fortunate enough that I’ve been able to choose the clients I take on over the past half decade or so. Sometimes it’s easier to have ten bigger clients (in terms of funds under management) than 50 smaller ones from a time/work perspective.
 
SWP's back said:
The 1.5% isn’t anything about the fund mate. It’s the advice and administration of consolidating 6 pensions into 1. And it’s a one off thing.

It’s obviously cheaper to do it yourself, same with decorating your own house or building your own extension.

If the total value of the six pensions is, say, £150,000 then he’s getting a steal. I personally wouldn’t be doing it for less than £6,000 gross. As my share of that would just about make it worthwhile. I’m not taking the micky there or playing billy big bollocks, just trying to put it into perspective. And I am very fortunate enough that I’ve been able to choose the clients I take on over the past half decade or so. Sometimes it’s easier to have ten bigger clients (in terms of funds under management) than 50 smaller ones from a time/work perspective.
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That's a lot better if it's one off. I agree with you - I just can't help but think it's expensive. But then again I feel relatively comfortable with these types of things, so it's less daunting for me to do it myself perhaps.
 
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