IFA & pension commissions

[winegummms]

Hi - so I'm looking at reviewing whether our combined 7 pension pots totalling £200k+ are performing.... How do I see an IFA who charges 5% or sthg on any pots I switch to a different one...? What if they're doing ok where they are and I'm just going to pay ££ for not much? Where is the incentive for an impartial review?

I can't speak for all IFA's, but personally I offer clients a report analysing their existing arrangements and how well they match their circumstances and objectives. This will also include any recommendations for action or confirmation that things are ok as they are. This report would be charged at a fixed fee. If the client chose to act upon my recommendations to move things about (if that's what is in their best interests) then a percentage of monies being moved would apply.

It sounds to me that you need to ask your IFA to provide you with a report on a fixed fee basis so that you just know where you are at now.

You can sometimes save on the charges being lower in a new one - the report willl show this, or not.
You may want to gain more control which is hard across those pots. The cost can be shown.
A fixed fee assessment is a norm n our company.

I’m an ifa as well and in your case after an initial hour meeting at my cost I would email you, telling you how long I think what you want done will take me and what my hourly rate is.

If you agree, we’d meet again to get the necessary paperwork started and then I’d prepare a report. Once you have the report detailing your pension recommendations you can take it anywhere if it means transferring your pensions into one pot, or indeed whatever recommendation is made including doing nothing.

Please be aware though it can be time consuming depending on how current the info on your pensions is. The more work you do in this respect the less the ifa will have to do and charge for it.

Perhaps ringing 3 or 4 local to you ifa’s and having a quick chat may help you feel comfortable with one.

A comprehensive pension report could comfortably take between 4-6 hours including presenting and discussing the report. As a guide my hourly rate is £147 but that is relatively low so don’t be surprised to find them much higher. By the way it is common for people to think wow that’s a lot of profit, however the net profit after regulation fees and office costs plus staffing probably leaves a third as profit.

Finally I hope you get with your new adviser as lots of Ifa’s rarely take on new clients as they are too busy servicing their current clients.

Sorry pressed post to soon. I meant to say I agree with Sunseed. Pay for a report it’ll be worth it in the long run

£147 p/h my paraplanner is £125, I’m £275

IFAs don't charge commission it's a fee and you should agree these before work commences.

Littlebillie, I don’t disagree but sometimes due to external factors (inept insurance companies) you can’t always guarantee the time frame.

OK - luckily I’m at the twilight of my 34 year career as an adviser and 10 years ok changed to fees ahead of the curve, sold my entire client base apart from 40 or so who I’ve looked after since. Work from my pleasant garden and everything is enjoyable as the 40 have been with me over 25 years so it’s like working with friends.