Stocks and shares ISA - set up alone or use an IFA?

[GoByTrain]

That's it really.

Have spoken with our IFA who says he is happy to set one up for me.
There is a 3% commission and a 1% annual fee; plus 3% on any extra lump sums invested.

Does it therefore make sense to just set one up myself & save on the fees (as I've done with a normal cash ISA = bog standard Lloyds).
Or will it be worth paying an IFA since ultimately they'll handle the ISA and review it each year etc. (PS have never switched or 'reviewed' the state of my cash ISA in all the years I've had it...but maybe few people do?!)

Am new to s&s ISAs so any tips or experience gratefully rcvd. Thanks!

[Notmadeofrib]

I would suggest that if you have the time, energy and interest then do it yourself. However if you don't then the 'opportunity cost' attached to having poor performing fund outweighs any saving.

Hargreaves Lansdown www.hl.co.uk/ is as a good place as any (although slightly controversial as they do keep some kick backs from providers).

I would however query the cost of your IFA. 1% trail is quite high, but it may be that your investments don?t really cover their standard fees. For that 1% I would expect bells and whistles and if it's just one ISA I would argue you can't really be exploiting them anyway.

The 3% input charge is standard to cover the insurance costs the IFA needs to have to practice.
I would argue 3 + 0.5% OR a straight annual review fee rather than a trail commission...

[onemorebite]

sounds steep to me.

suggest you do it yourself. Read some financial press and choose a reasonable fund. Fundsmith in particular has low charges if you invest directly - and has had good reviews.

[GoByTrain]

Thank you both. Onemore I will look into Fundsmith.

Naive qu: but do people tend to switch their S&S ISAs each year? (As mentioned, I have never changed my cash ISA - in fact, do people look for new cash ISAs each year?!)

Notma interesting. For 1% they say they review your ISA each year. Well, I can review my ISA each year too...

PS My main reason for opening a S&S ISA is because I want to save for our son - and I want to shut down his CTF. I.e. I'm looking at looking up the cash for a good 16 years. (My second reason is to save for myself - for retirement.)

Based on this info - any further advice on where to start/who might be good?

[GoByTrain]

locking up the cash I mean