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Stocks n Shares ISA

dave hedgehog said:
Thanks i'll try that. Im aware of their reputation its one of the reasons thats made me question committing to them
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It's the fees rather than the quality of advice that is the issue. I have had a few colleagues use them, and the fees were something like 5% - 7% from the initial investment, up to 1% annual fee for "ongoing advice" (when mostly invested in passive funds), and then they would invest in their own funds which would have their further fees attached. Very difficult to see the full cost of their "service", but I reckon you'd give your annual investment performance a 3% head start by using a lower cost provider.
 

NYMackem said:
It's the fees rather than the quality of advice that is the issue. I have had a few colleagues use them, and the fees were something like 5% - 7% from the initial investment, up to 1% annual fee for "ongoing advice" (when mostly invested in passive funds), and then they would invest in their own funds which would have their further fees attached. Very difficult to see the full cost of their "service", but I reckon you'd give your annual investment performance a 3% head start by using a lower cost provider.
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This is one of main aspects im questioning. Quoted 3% 1st year then 1.8% yearly fee.

As you say once your tied in any additional fees will come to the table.

Any advice for whom to speak with?
 
NYMackem said:
No, I just look after my own SIPP. Never used an adviser. Plenty people on here more knowledgeable than me re IFAs and low cost pension providers / advisers.
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I've never taken any investment advice so far but I'm planning to in the next few years as I'm one of those in the transition group born between 6 April 1971 and 5 April 1973 affected by the increase in the minimum age to 57 which gives me a short window where I could access my lump sum before it closes again.
 
NYMackem said:
They will take your eyes out and come back for the sockets. The most ludicrously overpriced option in the retail investment market.
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Is the reputation on fees not a legacy thing?

I switched a work pension to SJP when I left and the fees were less or equal to what I was paying and I was paying a very good rate due to the size of the organisation I was working for.

I’m not an expert and there’s plenty people on here with more knowledge than me but didn’t SJP change their model a few years back to move away from the stigma of ‘being expensive’ and reduce the cost to invest for everyone which actually led to more and more IFA’s joining the SJP model and become FA’s.

They must be doing something right as they seem to be getting bigger and bigger, plus my pension is flying the past year or so.
 
NYMackem said:
It's the fees rather than the quality of advice that is the issue. I have had a few colleagues use them, and the fees were something like 5% - 7% from the initial investment, up to 1% annual fee for "ongoing advice" (when mostly invested in passive funds), and then they would invest in their own funds which would have their further fees attached. Very difficult to see the full cost of their "service", but I reckon you'd give your annual investment performance a 3% head start by using a lower cost provider.
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Nowhere near those sorts of figures.
 
im not roland rat said:
Is the reputation on fees not a legacy thing?

I switched a work pension to SJP when I left and the fees were less or equal to what I was paying and I was paying a very good rate due to the size of the organisation I was working for.

I’m not an expert and there’s plenty people on here with more knowledge than me but didn’t SJP change their model a few years back to move away from the stigma of ‘being expensive’ and reduce the cost to invest for everyone which actually led to more and more IFA’s joining the SJP model and become FA’s.

They must be doing something right as they seem to be getting bigger and bigger, plus my pension is flying the past year or so.
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It's not as extortionate as it was previously, but it's still a very expensive option.

They are doing something right, they are great at selling themselves to unconfident and inexperienced investors. And everyone's pension is flying over the past year - the main stock markets have shot up. The question is how much more growth would you have had without their fees.
im not roland rat said:
Nowhere near those sorts of figures.
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I have seen those fees historically with my own eyes.

They also used to tie people in with very heavy penalties for early withdrawal in the first 5 or 6 years.

Even now, assuming you started investing after they cleaned up their act, their fees are 3% on initial advice for an investment below £250k, plus 0.8% a year for "advice", plus product fees for the wrapper of 0.27% - 0.35% and fund fees of 0.09% - 0.69% for their proprietary funds.

Most SIPP providers will allow you to swerve the initial advice fee, the ongoing advice fee, have a similar product fee and allow you to spread your investment across lower fee funds (ishares and vanguard lowest cost trackers have fees of 0.05%).
 
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