Charges to Invest

[Bromptotoo]

Inherited a set of Unit Trust type investments from my Mother. They're run by a well known form of 'Wealth Managers' who take an ongoing management charge of around 1.5%.

We have approx £80k cash to invest. About half is in Cash ISAs though I don't think that's relevant.

They want 5%, so approx £4000, as a fee to add our cash and invest it in their products.

Is that a reasonable/competitive charge?

form = firm

No, that's a very high expense ratio & a crazy high access fee. Over time you would lose out a lot compared to e.g. a broad based index tracking etf which you can find charging only 0.43% & basically no fee to put your cash in it.

Can’t remember what we are paying Royal London but it is nothing like that.

You could use a Stocks & Shares ISA to invest £20k of your cash this tax year (and transfer in the Cash ISA's assuming they are previous tax years, without that money leaving the ISA wrapper). The remainder could go into a General Investment Account (note, capital gains tax may apply when assets are sold), and sold in April 2024 and used to fill 2024/25 tax year ISA allowance. If there is more than one adult involved, then you can each have ISA accounts, so may be able to get all the money in this tax year.

£4000 - what are they doing? If they are doing full financial planning, cash flow modelling, reviewing pensions and protection policy's then that may be reasonable. If they are just moving money into an ISA, it is extreme!

You can get your own S&S ISA for a fee of 0.15% (such as Vanguard, Dodl) and have a fund within that at say 0.22%, so total annual fees of 0.37% (give or take a bit, due to transaction charges). So may cost you under £300 in first year (may be higher as there may be some growth on the investment).

Op that's ridiculous.
It's very easy to DIY investing these days.

No, that is high. Is it because they provide financial advice? You can invest directly in funds without any dealing charges, just ongoing manage fees.

That sounds like St James Place, and if it is then check the smallprint carefully for exit charges too.

Are they SJP?

Sounds very high, you need to shop around. It is also possible to move your mum's investments away from them but seek advice as there could be tax implications if not done correctly.

Very high. Look for .5 to 1% for advice plus platform charges.

Indeed.

I wasn't naming them but since you guessed....

Go on vouched for and get 3 ifa in your area. Can’t believe an ifa would charge more than 1.25% initial and possibly .5% - .75 % ongoing .