Is there such a thing as a truly independant IFA

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  • dunstonh
    dunstonh Posts: 116,296 Forumite
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    Don't believe I have said that at all. What I am trying to establish is how I find someone who gives advice that I can trust as being in our best interests and not based on their best interests!

    Well, that is all IFAs.
    Unfortunately we are of the era who, had our IFA at the time to be believed, should have drawing on a pot of endowment money next year that would not only pay off our mortgage but would, and I quote "see any kids through university and let you have a nice holiday".

    Different era. Also, most were not put in place by IFAs. IFAs came about in 1988. Endowments were already on their way out by around 1995. FAs dominated the retail of them. However, it is easy to look back with hindsight. Had this site existed back then, it would have recommended endowments. The media did and so did Which? (consumers association). Even people with shortfalls are usually better off because of the economic events that affected the ability of the investment element to fail to hit target. The bigger picture needs to be looked at. Had the economy continued the way it used to when endowments paid big surpluses, peopel would have been worse off.
    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.
  • Amanda65
    Amanda65 Posts: 2,076 Forumite
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    dunstonh wrote: »
    Well, that is all IFAs.

    I wish I had your faith. Unfortunately I have heard too many horror stories from friends to be able to be so confident, hence me asking the question!

    I have been on the unbiased website though and am going to give a couple of local companies a call and see what their charges are likely to be and go with 'gut instinct' - very scientific ;)
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    UsernameAlreadyExists wrote: »
    No IFA is truly independant - because they are biased towards themselves, and not you ;)

    Put all you post in a pile, read it all carefully ... and DIY :D

    totally agree - couldn't have put it better myself

    fj
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    dunstonh wrote: »

    Are you saying you dont want to pay for advice?

    theres paying for advice trouble is that ifas have a bad reputation for taking ongoing payments and not doing anything to justify it - rdr may alleviate that but being in finance no doubt these charges will be reapear in another guise

    also ifas dont seem to take responsibility when things go bad - allegedly

    i would like to see ifas taking on the risk them selves and drop all charges id their advice fails to meet an agreed outcome -it will never happen tho; becaise as we all know no one can actually predict how an investment will pan out - they may as well just give you odds like a turf accountant

    just my ramblings to upset all those ifas out there

    cheers

    fj
  • UsernameAlreadyExists
    UsernameAlreadyExists Posts: 1,194 Forumite
    GhIFA wrote: »
    And this is a fatal flaw because.......?
    ... errr ... because they're going to charge you a load of money?

    I wouldn't trust an IFA as far as I could throw one :) They can NOT see into the future. And neither can I. You can either flip a coin, or .. as they'd rather you do ... pay out time & time again to have them regularly review things and make the "necessary" modifications and adjustments each time.
  • atush
    atush Posts: 18,726 Forumite
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    UsernameAlreadyExists wrote: »
    Well indeed ... but you have identified the fatal flaw.
    " they need to make a living. "

    All that means a fair price paid for work done. They got it before from commission. Now, no commission. so you pay an agreed fee. which has not been set by a regulator.

    You are in the driver seat. If you find the seat too hot, get out.
  • atush
    atush Posts: 18,726 Forumite
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    Amanda65 wrote: »
    I wish I had your faith. Unfortunately I have heard too many horror stories from friends to be able to be so confident, hence me asking the question!

    I have been on the unbiased website though and am going to give a couple of local companies a call and see what their charges are likely to be and go with 'gut instinct' - very scientific ;)
    Don't believe I have said that at all. What I am trying to establish is how I find someone who gives advice that I can trust as being in our best interests and not based on their best interests!


    As said, an IFA (as opposed to FA) wants you to be happy. That is their best interest.

    Your horror stories are 3/4th hand from many who do not understand pensions or money in fact.

    Call 3/4 from unbiased, go to see 2.
  • UsernameAlreadyExists
    UsernameAlreadyExists Posts: 1,194 Forumite
    atush wrote: »
    As said, an IFA (as opposed to FA) wants you to be happy. That is their best interest.
    You sound like a closet IFA yourself. Just admit it ... you want to take money money money, over & over again. Why else do you get up in the morning? :D
  • tell_it_how_it_is
    tell_it_how_it_is Posts: 555 Forumite
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    With respect, how the heck does "I have heard too many horror stories from friends" become "Your horror stories are 3/4th hand from many who do not understand pensions or money in fact."?!

    While I have no real desire to slate IFAs (I'll leave that to others lol), it's clear on here that some of you feel they can never do any wrong.

    All the experts got endowments wrong, but hey, that's life, no case to answer, they got their money, it's the poor b*ggers who put faith in them that lost out.

    All this is not to say there aren't good, clever, conscientious IFAs etc., but for me the undoubted love-in, and excuses for bad practice and outcomes that goes on in here just grates somewhat.
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • Amanda65
    Amanda65 Posts: 2,076 Forumite
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    atush wrote: »
    Your horror stories are 3/4th hand from many who do not understand pensions or money in fact..

    Told to me directly by family and friends who were affected - hardly 3rd or 4th hand!

    Whilst I am certain that there are some excellent IFA's out there, and I have no problem whatsoever paying for advice that will be beneficial, my question was are any truly independent and if so, how do I find them. I did not realise IFA's were quite so sensitive ;)
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