Questions for IFAs
Jon_W
Posts: 108 Forumite
Sorry for starting another thread but any replies to this could help quite a few other people and any valuable info could be lost if in one of the other threads I started.
Here's what I think I will be asking:
1. Are you self-employed or en employee of the organisation this appointment has been organised through? (Important for liability in case he does a runner with my cash
)
2. Your fees for:
i) Implementation
ii) Ongoing management
iii) Future appointments to discuss strategies if I go DIY but want advice on an ad hoc basis
3. How often will you update me as to the progress (or regression) of the portfolio?
4. If I choose a definite asset mix I want and if the funds held depart from it by more than a few % will you rebalance the portfolio, automatically?
5. My brother is also seeking to invest do I get a referral bonus if he goes with you as well?
6. If any of the funds I invest in are income and not accumulatory, will you invest the dividends, etc, and keep my chosen asset mix %ages?
7. What is the value of your liability insurance? (Is it a bit cheeky/insulting to ask this?)
8. How many other clients' portfolios do you manage?
9. Would you be happy for me to contact any of your other clients (with their permission) regarding your work? (again, is this cheeky?)
Have I made any glaring omissions?
Here's what I think I will be asking:
1. Are you self-employed or en employee of the organisation this appointment has been organised through? (Important for liability in case he does a runner with my cash
)2. Your fees for:
i) Implementation
ii) Ongoing management
iii) Future appointments to discuss strategies if I go DIY but want advice on an ad hoc basis
3. How often will you update me as to the progress (or regression) of the portfolio?
4. If I choose a definite asset mix I want and if the funds held depart from it by more than a few % will you rebalance the portfolio, automatically?
5. My brother is also seeking to invest do I get a referral bonus if he goes with you as well?
6. If any of the funds I invest in are income and not accumulatory, will you invest the dividends, etc, and keep my chosen asset mix %ages?
7. What is the value of your liability insurance? (Is it a bit cheeky/insulting to ask this?)
8. How many other clients' portfolios do you manage?
9. Would you be happy for me to contact any of your other clients (with their permission) regarding your work? (again, is this cheeky?)
Have I made any glaring omissions?
0
Comments
-
1. Are you self-employed or en employee of the organisation this appointment has been organised through? (Important for liability in case he does a runner with my cash )
Irrelevant. The IFA does not handle your money. They cant do a runner with it.4. If I choose a definite asset mix I want and if the funds held depart from it by more than a few % will you rebalance the portfolio, automatically?
That would require discretionary investment management permissions and IFAs are not DFMs. You also want the move apart from the target allocations for a sufficient period before rebalancing. Moving it back too quickly can be counter productive.
What is the point of asking it? The FCA take data on IFAs PI insurance every year. It has to meet the FCA criteria.7. What is the value of your liability insurance? (Is it a bit cheeky/insulting to ask this?)8. How many other clients' portfolios do you manage?
What has that got to do with anything? What answer is better in your eyes? An IFA with 50 or an IFA with 500? What if the IFA with 50 does everything himself and the IFA with 500 has a team?9. Would you be happy for me to contact any of your other clients (with their permission) regarding your work? (again, is this cheeky?)
If I recall, your investment amount is not very high. I would think you are in multi-asset territory for an IFA recommendation. Not a full blown bespoke portfolio.
Don't try and act like a high roller when you don't have the chips to back it up. Let the IFA do their job and then ask questions that are relevant and important. Don't come across like a Daily Mail reader (someone that acts like they know it all but knows nothing). Don't focus on irrelevant areas as an IFA that can pick their clients may think you are going to be high maintenance and you don't have the investment value for them to be interested in taking you on. We turned away a £150k investor a few weeks back as we considered them a complaint waiting to happen if we took them on. Established IFAs don't want trouble. That would leave you with the sales type (who dont care) or the new advisers who dont have the client bank to be picky.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Cheers. Oh, I know there's a quid pro quo and that I am not calling all the shots, don't worry on that score. I just don't want them to think I'm a total moron and/or ask things which are pointless and none of my effing business.0
-
-
Don't try and act like a high roller when you don't have the chips to back it up. Let the IFA do their job and then ask questions that are relevant and important. Don't come across like a Daily Mail reader (someone that acts like they know it all but knows nothing). Don't focus on irrelevant areas as an IFA that can pick their clients may think you are going to be high maintenance and you don't have the investment value for them to be interested in taking you on. We turned away a £150k investor a few weeks back as we considered them a complaint waiting to happen if we took them on. Established IFAs don't want trouble. That would leave you with the sales type (who dont care) or the new advisers who dont have the client bank to be picky.
Spoken like a true IFA !
Forget who's paying them (Don't try and act like a high roller when you don't have the chips to back it up.)
Patronizing ( Don't come across like a Daily Mail reader)
Want money for old rope (Established IFAs don't want trouble)
Think they are doing you a favour ( That would leave you with the sales type (who dont care) or the new advisers who dont have the client bank to be picky.)0 -
Spoken like a true IFA !
Forget who's paying them (Don't try and act like a high roller when you don't have the chips to back it up.)
Patronizing ( Don't come across like a Daily Mail reader)
Want money for old rope (Established IFAs don't want trouble)
Think they are doing you a favour ( That would leave you with the sales type (who dont care) or the new advisers who dont have the client bank to be picky.)
Really?
IFAs are businesses.
Any business gets to chose its clients. If the business is a UK wide supermarket, then the business can afford to have some disruptive clients.
If the business is a small local concern, then a few disruptive clients can cause a massive impact to its smooth running and profitability.
The best IFA/client relationships are built on mutual trust and understanding. Without this being present, there would be little benefit to the client, and little value to the IFA, to start working together.
I too have recently had to decline to deal with a new client with a six figure sum to invest, as the IFA/client relationship was clearly not going to exist. (One of the first comments made was "I don't like IFAs, but feel I'm being forced to come here.")
IFAs are not looking for "money for old rope", rather, to add value to the client and make a profit for the IFA.I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
I did wonder whether I should shake hands or bow... ;-D
Joking aside, dunstonh has been incredibly helpful to me on here, all for free. He's a top fella in my book.0 -
No doubt about that but I still think you're burning hundreds unnecessarily, it's your money though, well it is until the bill arrives.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
-
I met one last night. He doesn't want me as my investment is too small. Which begs the question as to why he met me when I made it very clear in my emails about the extent of my investment?!
He said to have a look at Vanguard LS options. I was going to meet with a few other IFAs but was leaning towards this until I saw someone on another thread say 'it's the elixir of life but so were endowment mortgages'.
But I suppose there, there was always the risk there that the endowment wouldn't cover the mortgage amounts. Whereas the Vanguard LS are a diversified, multi-asset passive fund with diversified risk, so relatively 'safe' as far as investments go, if you have the nerve to hold.0 -
I met one last night. He doesn't want me as my investment is too small. Which begs the question as to why he met me when I made it very clear in my emails about the extent of my investment?!
Because there could easily have been other areas on which the IFA could add value that you hadn't considered before you met him. Pension funds, a substantial protection requirement, future lump sums. You probably knew there weren't but the IFA doesn't know that.0 -
Malthusian wrote: »Because there could easily have been other areas on which the IFA could add value that you hadn't considered before you met him. Pension funds, a substantial protection requirement, future lump sums. You probably knew there weren't but the IFA doesn't know that.
I agree but as soon as we began talking and I confirmed the extent of my investment, he said he was out (adding in the average amount of his client :T ) and then we just chatted generally.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards