Reply to: Independent Financial Advice - Retirement Planning for Contractors

[TheFaQQer]

Hmm, interesting. IR35 never came in to my conversations but he knew all about small companies and about low pay+divis without me prompting him. Did it have an impact on the product you chose or whatever he did for you out of interest?

Not really - we were discussing pensions, and he immediately said that if I was inside IR35 then by sticking more money through the pension plan from the company, that would reduce the personal tax bill.

[TheFaQQer]

Oh, forgot to mention. I think to say you know nothing about what is available is not a good start. To start investing in anything without finding a bit out yourself is irresponsible and a bit daft really.

Do some research on google and at least become familiar with the terms and products at a very high level and learn some terminology. Basics of how a pension works, lump sum and yearly payments options etc. I really can't see how he can advise you if you don't have a scooby about what he is talking about.

To a certain extent, I disagree - you may get better advice by being completely up front and admitting that you know nothing, so they have to explain things to you in more basic terms. If you don't understand what they are saying, then tell them, and make sure you understand before you make any decisions.

You also need to tell him what your plan is. Is it untouchable until you retire? A pot you can dip in to? Ask him about spreading it across products and levels of risk etc. Sitting there with a blank face helps no one. He can only advise. It is up to you in the end.

You can explain at the level without needing to know what kinds of options are available.

So far, all I've done with SJP is to arrange a pension plan for me and the Mrs, since that was the main thing that we're lacking (IMO). There will be other things to discuss next year, but we need to sort out houses etc. before we discuss investment plans and so forth.

[northernladuk]

I was impressed with the guy from SJP who understood the IR35 implications etc. of the kind of thing I did, even though he knew very little about my background before we met face-to-face.

Hmm, interesting. IR35 never came in to my conversations but he knew all about small companies and about low pay+divis without me prompting him. Did it have an impact on the product you chose or whatever he did for you out of interest?

[TheFaQQer]

I don't think it makes that much difference IMHO. They may know a little more about the taxation of your money and how to use it but we are small businesses, contracting is our trade. IFA's often deal with people with small businesses so they will be quite competent in dealing with you. I often think the 'contractor' term is used as targeted marketing. E.G Fitness Industry Accountants, Flintham UK Fitness accountant? Are the financials of a one man owned gym that much more different to the accounts of a one man owned IT co?

Anyway... take advice, pick an IFA and interview him when he speaks to you. Ask him how many small companies he has on the books, how many directors he deals with. Does he offer other services to small companies such as payroll services or something to gauge his involvement.

But saying that I know F all, it's just my thoughts.

I was impressed with the guy from SJP who understood the IR35 implications etc. of the kind of thing I did, even though he knew very little about my background before we met face-to-face.

[northernladuk]

Oh, forgot to mention. I think to say you know nothing about what is available is not a good start. To start investing in anything without finding a bit out yourself is irresponsible and a bit daft really.

Do some research on google and at least become familiar with the terms and products at a very high level and learn some terminology. Basics of how a pension works, lump sum and yearly payments options etc. I really can't see how he can advise you if you don't have a scooby about what he is talking about.

You also need to tell him what your plan is. Is it untouchable until you retire? A pot you can dip in to? Ask him about spreading it across products and levels of risk etc. Sitting there with a blank face helps no one. He can only advise. It is up to you in the end.

[northernladuk]

I would appreciate more thoughts on the 'value for money' question I originally asked

I don't think it makes that much difference IMHO. They may know a little more about the taxation of your money and how to use it but we are small businesses, contracting is our trade. IFA's often deal with people with small businesses so they will be quite competent in dealing with you. I often think the 'contractor' term is used as targeted marketing. E.G Fitness Industry Accountants, Flintham UK Fitness accountant? Are the financials of a one man owned gym that much more different to the accounts of a one man owned IT co?

Anyway... take advice, pick an IFA and interview him when he speaks to you. Ask him how many small companies he has on the books, how many directors he deals with. Does he offer other services to small companies such as payroll services or something to gauge his involvement.

But saying that I know F all, it's just my thoughts.

[Submariner]

guys, many thanks for your assistance and responses to date.

In response to a few comments - Firstly by 'St James Place' - I assume you mean:- Wealth management and financial planning - St. James's Place Wealth Management

Secondly, I don't have the time, energy or skill to be my own IFA but I am thankful for the suggestion!

I would appreciate more thoughts on the 'value for money' question I originally asked

[TheFaQQer]

I would encourage you to be your own IFA. There is tons of literature out there. I suggest you start out by looking at Hargeaves Lansdown who I find have second to none customer service (I have my SIPP with HL). They also have IFA's should you really feel you need one.

In the same way that I haven't got time to be my own accountant, so I bring in someone who can do a better job in less time for less money than it would cost me, I have neither the time nor the inclination to do it myself.

[Fred Bloggs]

I would encourage you to be your own IFA. There is tons of literature out there. I suggest you start out by looking at Hargeaves Lansdown who I find have second to none customer service (I have my SIPP with HL). They also have IFA's should you really feel you need one.

[Maslins]

There's been a big move from commissions (ie you don't pay them anything directly, they get paid based on the products they encourage you to take) to fees for IFAs.

IMHO this is a good thing, removes the temptation to be biased towards larger commission products. It does however mean that for the punter the advice that used to be "free" you now have to pay for.

When it comes to things like what pension is suitable, I don't really see why a contractor would be any different to anyone else. Appreciate the contributions might be a bit more erratic...but beyond that?

Make sure you find someone you trust, and that you understand how much you're paying and what it's for.

[northernladuk]

Not one of your clients, but that's who I use as well. My came recommended by other family members, and I like the guy that we deal with.

Same.

[malvolio]

One point to consider though - advice (including this advice) is usually worth what you pay for it.

If the IFA is charging you they aren't getting a rake-off from the supplier so are rather more likely to be offering an unbiased view of the whole market. And St James Place are a little different in that in effect they have their own market.

[TheFaQQer]

Many of our clients use St. James's place.

They have advisors based all over the UK so it is fairly easy to arrange a free consultation from wherever you are based.

I hope this helps.

Martin

Not one of your clients, but that's who I use as well. My came recommended by other family members, and I like the guy that we deal with.

[Martin at NixonWilliams]

Many of our clients use St. James's place.

They have advisors based all over the UK so it is fairly easy to arrange a free consultation from wherever you are based.

I hope this helps.

Martin

[cojak]

I'm aware of Contractor Financials from this thread.

http://forums.contractoruk.com/showt...00#post1794600