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  1. #1

    IFA charges and recommendations- thoughts please.

    Hi all,
    Sorry if this is duplicating a thread...

    I have between around 50-60k currently sitting in premium bonds and various accounts. I haven't used my ISA allowance yet.
    I am a total novice but am starting to read some literature. My problem is that I am incredibly indecisive so deciding how to proceed with investing is tricky!

    I have had quotes from 2 IFAs to help.

    1) 3% of initial amount up yo 50k and 1000 plus 1% over 50k.
    1% ongoing fee. All deducted out of the investment. Advice= 20k in a S and S ISA and then create a general portfolio with the rest. 1.11% active funds charges.
    Dividend income- 3% growth (asset price increase). Price increase- 10%.

    2) From a brief phone conversation- 3% initial cost. Ongoing- 0.5%-1% ongoing charges. Plus transitional costs. Seems pretty similar costs and charges.

    I am confused how you would split the lump sum into an ISA and a general portfolio.
    Presumably the idea is that you move the money from the general portfolio into the ISA yearly to use up the allowance?

    I am low/medium risk (a bit of a worrier).

    How do these charges sound to you?
    Am I better doing it DIY?
    How easy is it to take money out if it were needed (beyond my emergency fund)? I have been advised that accumulation also means that you can sell. But at a charge?

    Thanks in advance.

  2. #2
    With your value, they sound ballpark. Investment values under 100k (amount varies with firms) tend to pay more than higher investments.

  3. #3
    Sorry, I don't know what you mean there. If you are referring to the type of unit, then it is doesnt matter if its income or accumulation. And charges are unusual unless you have an illiquid investment or a product with a fixed term tie in (unusual nowadays but still exist).

  4. #4
    Thanks for your speedy reply.


    Sorry, I don't know what you mean there. If you are referring to the type of unit, then it is doesnt matter if its income or accumulation. And charges are unusual unless you have an illiquid investment or a product with a fixed term tie in (unusual nowadays but still exist).[/QUOTE]

  5. #5
    If I were to do it DIY, I set up the S and S ISA, but how do I go about setting up a 'general' portfolio which is not wrapped in an ISA?

    There is a potential 0.5% annual fee difference between the 2 IFAs. How much difference would that make? Could that be renegotiated or is that an IFA faux pas?

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