Financial advice - ignore it and then DIY

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capital0ne
capital0ne Posts: 872 Forumite
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in Savings & investments
Do you need a financial adviser?
If you’re looking to invest, buy a financial product or plan for the longer term, whether or not you need financial advice will depend on a number of factors such as what product you are looking for, how complicated your finances and personal circumstances are and your short and long-term goals.

Fair enough, but a little known fact is that once you've received the advice you don't need to take the specific advice, you can do what ever you like.

So knowing that, shop around for the cheapest advice you can get, then do your own thing.

Simple!
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  • msallen
    msallen Posts: 1,494 Forumite
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    Are you so fed up of waiting for a mention of IFAs in a real thread (so that you can continue your campaign against them) that you have to start a ludicrous thread just for the purpose?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    I'm continually amazed that personal responsibility and agency in money matters seems to be a strange idea in the UK. I believe it stems from entrenched class/financial attitudes held across society and vested interests that make things more complicated than needed.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    edited 17 March 2018 at 6:04PM
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    Unfortunately, most of the world doesn't have the same wise leadership, financial honesty and free rights as your utopia. There is a lot to be learned from the good old USA.
  • greenglide
    greenglide Posts: 3,301 Forumite
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    Is this FA under a pseudonym?
  • Linton
    Linton Posts: 17,172 Forumite
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    It all depends on your circumstances. If you are relatively young aiming for retirement in 30-40 years time steadily earning and drip feeding money into a currently relatively small portfolio then there is no complexity, no need to consult an IFA etc. Just put it into a global, preferably All-Cap, Tracker, at least for the first 20 years.

    However at the other extreme, if you have £1M currently in cash to support yourself for the next 40 years with no other income putting all your money in a global All Cap Tracker would be foolish. Even with some experience it would be sensible to get professional advice.
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    Fair enough, but a little known fact is that once you've received the advice you don't need to take the specific advice, you can do what ever you like.

    Correct. However, you still have to pay for the advice fee.

    Plus it would be a bit daft to pay for advice, then DIY the product when the advice product is often cheaper than the DIY product. It is the cost of advice that makes the total cost more expensive.
    Unfortunately, most of the world doesn't have the same wise leadership, financial honesty and free rights as your utopia. There is a lot to be learned from the good old USA.

    The USA is behind a lot of the rest of the developed economies in terms of financial products. The only thing it really has going for it is economies of scale allowing it to be cheaper. However, even then, it often isnt.
    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.
  • dmelife
    dmelife Posts: 133 Forumite
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    It!!!8217;s a well known fact that all people who use pseudonyms starting with the word !!!8216;Capital!!!8217; are totally useless at their job and you should avoid dealing with them at all costs.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    This proposal reminds me of the people that discover a great new book in a local bookshop and then put it back on the shelf to buy on Amazon.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    dunstonh wrote: »
    The USA is behind a lot of the rest of the developed economies in terms of financial products. The only thing it really has going for it is economies of scale allowing it to be cheaper. However, even then, it often isnt.

    Yes the US banking system is very fragmented and inefficient. However, no one tells you what to do with your pension money and transfers of the equivalent of SIPPs and ISAs are trivial and cost nothing. But it's possible to invest far more tax free in the UK than the US. Whatever the differences in the financial products available in the US and the UK the main difference is the way people in the UK have barriers placed between them and their money and are continually made to jump through hoops and justify their decisions. This might be useful sometimes if it stops fraud, but it's also often just a way to get a "pound of flesh".
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • AlanP_2
    AlanP_2 Posts: 3,252 Forumite
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    bostonerimus wrote: »
    Yes the US banking system is very fragmented and inefficient. However, no one tells you what to do with your pension money and transfers of the equivalent of SIPPs and ISAs are trivial and cost nothing. But it's possible to invest far more tax free in the UK than the US. Whatever the differences in the financial products available in the US and the UK the main difference is the way people in the UK have barriers placed between them and their money and are continually made to jump through hoops and justify their decisions. This might be useful sometimes if it stops fraud, but it's also often just a way to get a "pound of flesh".

    I know you think the US approach is better and not everyone agrees.

    But, what barriers do you see in the UK from what you read on here?

    The main one I would think is the DB pension transfer advice requirement and I'm struggling to think of any others that come up on a frequent basis.

    As regards the DB transfer can anybody in the US just transfer 250k, 500k, 750k, 1m or whatever it may be from the equivalent of a UK DB scheme with no hoops to go through?

    If they can are there lots of scammers encouraging people to transfer out and invest it in their "wonder investment", car parking spaces, South American forests and the like as we hear about over here?
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