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Should I move L&G SIPP to Fusion Wealth platform?

Retirement | SIPP Helpful? 11

Asked by DJClack, submitted 09 June 2013.

Open Quote My wife and I (both 61 years old) each currently hold an L & G Portfolio Plus Self Invested Pension.

We have been happy with the growth over the past 3 years. However, our present advisor is recommending we move all funds to Fusion Wealth Wrap Platform. We are confused as we have had someone else from St James's Place offering to take us on.

We lost significant funds during the financial crash, so a big decision like this has unsettled us, particularly in view of the fact that we would like to be able to drawdown funds in 4 years time. Up to this point we have been happy with our present advisor for the past 15 years.

Any thoughts gratefully received,
End Quote

Answered by Justin on 23 August 2013

In simple terms the Fusion Wealth platform does much the same as your existing L&G Portfolio Plus pension – that is allow you to invest your pension across a range of funds from different fund managers. Fusion Wealth is more complex in that it's not an off the shelf proposition, more a technology company that adapts versions of its platforms for advisers.

Fusion has the ability to offer a wider investment choice than L&G, but unless you are a particularly keen investor I doubt the additional choice will make a fundamental difference to your pension. So the bottom line is probably making the move will save you any money.

While platform choice is important, far more significant is your financial adviser's investment expertise and the level of fees that they charge, as both could have a significant impact on your long term wealth.

If you are happy with your existing adviser then there is probably little need to change, but I would carefully examine why he is recommending the move to Fusion and how it will benefit you. Plus ensure you understand how much it will cost in total versus your existing L&G arrangement and how much the adviser is charging you in fees for the advice.

St James's Place is an adviser tied to their own products. In fairness their investment funds generally tend to be quite good, but charges are high with a 5% initial charge and on going annual charges in excess of 1.5% commonplace. By contrast, the 'clean' versions of funds used by most advisers these days have no initial charge and total annual charges in the region of 0.75% to 1% (ignoring funds of funds).

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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