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    • capital0ne
    • By capital0ne 2nd Dec 17, 4:27 PM
    • 146Posts
    • 80Thanks
    capital0ne
    Do IFAs take their own advice?
    • #1
    • 2nd Dec 17, 4:27 PM
    Do IFAs take their own advice? 2nd Dec 17 at 4:27 PM
    Why do IFA's work or even exist, surely if they took their own advice the could design a plan to provide all of their income, once of course they had created the capital they needed.

    They can't be doing it as a service to us ill-informed masses because their fees are so high.

    Just a thought for dismal Saturday afternoon
Page 1
    • Linton
    • By Linton 2nd Dec 17, 4:39 PM
    • 8,614 Posts
    • 8,581 Thanks
    Linton
    • #2
    • 2nd Dec 17, 4:39 PM
    • #2
    • 2nd Dec 17, 4:39 PM
    Surely IFAs have designed a plan to provide all of their income - being an IFA is part of the implementation. Presumably, like most of us, when they have sufficient capital they will stop working and cease being IFAs.
    • ChesterDog
    • By ChesterDog 2nd Dec 17, 6:07 PM
    • 808 Posts
    • 1,475 Thanks
    ChesterDog
    • #3
    • 2nd Dec 17, 6:07 PM
    • #3
    • 2nd Dec 17, 6:07 PM
    You'd rather this was a world with no IFAs?

    Just FAs/salespeople or your own resources?

    It's a free country. Those who wish to use an IFA can do so. Those who do not need not.
    I am one of the "Dogs of the Index".
    • HappyHarry
    • By HappyHarry 2nd Dec 17, 6:32 PM
    • 456 Posts
    • 712 Thanks
    HappyHarry
    • #4
    • 2nd Dec 17, 6:32 PM
    • #4
    • 2nd Dec 17, 6:32 PM
    Why do IFA's work or even exist, surely if they took their own advice the could design a plan to provide all of their income, once of course they had created the capital they needed.

    They can't be doing it as a service to us ill-informed masses because their fees are so high.

    Just a thought for dismal Saturday afternoon
    Originally posted by capital0ne
    I certainly do. I have a plan, which will allow me to retire at an age I think i will be happy with the income I want, with no mortgage, In the meantime, I am regularly investing and saving into a pension whilst living a comfortable lifestyle. I don't have the advantage of a large lump sum or windfall which many of my clients have, and have around 20 years less working life so far than many of my clients. My income is also far lower than many of my clients.
    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.
    • bowlhead99
    • By bowlhead99 2nd Dec 17, 6:43 PM
    • 6,985 Posts
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    bowlhead99
    • #5
    • 2nd Dec 17, 6:43 PM
    • #5
    • 2nd Dec 17, 6:43 PM

    They can't be doing it as a service to us ill-informed masses because their fees are so high.

    Just a thought for dismal Saturday afternoon
    Originally posted by capital0ne
    Do you go to work as a charitable donation to the community, or as a public service - rather than charging market rates for your skills and knowledge? If you do that (i.e., undercharge) you're in a minority. Most people want to charge their employer a salary that the market will stand, so they stay in a job, but not doing themselves a disservice in terms of turning down a higher level of income that people would be willing to pay them.

    Similarly most people setting up their own business (whether a regulated investment firm or IFA shop, or a solicitor, doctor, consultant, mechanic, plumber, roofer, taxi driver etc), will charge a level of fee for their service per hour that's higher than their take-home pay, and therefore quite likely to be higher than the take-home pay of their clients, but not actually set so low as to be a non-profit public service.
    • Aegis
    • By Aegis 2nd Dec 17, 7:03 PM
    • 4,792 Posts
    • 2,912 Thanks
    Aegis
    • #6
    • 2nd Dec 17, 7:03 PM
    • #6
    • 2nd Dec 17, 7:03 PM
    Why do IFA's work or even exist, surely if they took their own advice the could design a plan to provide all of their income, once of course they had created the capital they needed.

    They can't be doing it as a service to us ill-informed masses because their fees are so high.

    Just a thought for dismal Saturday afternoon
    Originally posted by capital0ne
    Being an IFA doesn't make a large enough pot of money to retire on miraculously appear it of thin air. That's why IFAs work: to generate the capital need to retire throughout a hopefully productive working life.

    Don't use one if you think the fee are too high, noone will make you.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • dunstonh
    • By dunstonh 2nd Dec 17, 7:07 PM
    • 89,863 Posts
    • 56,530 Thanks
    dunstonh
    • #7
    • 2nd Dec 17, 7:07 PM
    • #7
    • 2nd Dec 17, 7:07 PM
    Why do IFA's work or even exist, surely if they took their own advice the could design a plan to provide all of their income, once of course they had created the capital they needed.
    You need money to make money. Why would an IFA stop working if they are happy with the job and it continues to provide 6 digit income?

    How about you asking all the DIY investors why they are not working as the same would apply to them.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • capital0ne
    • By capital0ne 2nd Dec 17, 11:10 PM
    • 146 Posts
    • 80 Thanks
    capital0ne
    • #8
    • 2nd Dec 17, 11:10 PM
    • #8
    • 2nd Dec 17, 11:10 PM
    All investors are working for because they're not actually that good at investing and don't have the conviction just to go it alone.
    Also you need an amount of capital to begin investing. if investors where any good at it they would then just rely on their investments.

    Only a small few can actually cut it - good old WB for one.

    The rest cannot so they have to continue working and selling there skills in investing to those who don't even have a clue.
    • ChesterDog
    • By ChesterDog 3rd Dec 17, 8:44 AM
    • 808 Posts
    • 1,475 Thanks
    ChesterDog
    • #9
    • 3rd Dec 17, 8:44 AM
    • #9
    • 3rd Dec 17, 8:44 AM
    Okay, I will bite...

    Investment/speculation is a spectrum of risk and return.

    There are all sorts of reasons, unique to each individual, whereabouts on that spectrum they fit their finances.

    To say that most investors are working because they are no good at investments in just nonsense.

    I think Warren Buffet will be at work tomorrow.
    I am one of the "Dogs of the Index".
    • Glen Clark
    • By Glen Clark 3rd Dec 17, 8:59 AM
    • 3,906 Posts
    • 2,910 Thanks
    Glen Clark
    Perhaps the OPs question should have been more like 'Why don't those cold calling strangers to sell so called 'investments" just buy them themselves.
    ďIt is difficult to get a man to understand something, when his salary depends on his not understanding it.Ē --Upton Sinclair
    • TheTracker
    • By TheTracker 3rd Dec 17, 9:50 AM
    • 1,129 Posts
    • 1,120 Thanks
    TheTracker
    I think most posters have missed the point. The OP is saying since IFAs have secret sauce around what funds to buy over others, surely their time would be more profitably spent making that sauce instead of meeting with Bob the guy who wants to transfer his DB to a SIPP.

    Itís a relatively common misconception IFAs hold such magic ability. They have zero ability to make such prognostications. Many do play this way, one on this forum is fond of saying how his firms portfolio making machine beats the market. Laughable!! Thankfully many donít, and itís somewhat heartening to see the challenge go unrecognised against your post.

    No, IFAs are there to help those with low financial literacy navigate financially uncertain times, and wealthy risk-averse individuals not make a silly mistake. Itís a visit to the financial GP. Your family doctor wonít live to 100 by giving up her day job, but then she doesnít peddle the elixir of youth.

    The OP should ask the same question of all the media pundits who do explicitly make a living by saying they can read the tea leaves. Creators of this list or that, and what will be hot next year. And even those active managers who sort of put their money where their mouth is - and then the OP may realise they continue to do that day job because taking the management fee you are willing to pay is far more profitable than their ability to pick stocks.
    • BananaRepublic
    • By BananaRepublic 3rd Dec 17, 10:49 AM
    • 921 Posts
    • 663 Thanks
    BananaRepublic
    Why do IFA's work or even exist, surely if they took their own advice the could design a plan to provide all of their income, once of course they had created the capital they needed.

    They can't be doing it as a service to us ill-informed masses because their fees are so high.

    Just a thought for dismal Saturday afternoon
    Originally posted by capital0ne
    You answered your own question. Of course an IFA gets used to a champagne and caviar lifestyle, so it takes some time for them to build up a large enough retirement pot.

    Anyway, studies have shown that relative wealth is an important aspect of happiness. If you are making a lot more money than others, you have more job satisfaction, as you see yourself as more successful. So I would not be surprised if they tend to carry on working even if they have the funds to retire.
    • fred246
    • By fred246 3rd Dec 17, 2:50 PM
    • 912 Posts
    • 497 Thanks
    fred246
    When I started work in the 90s IFAs were a nightmare. You couldn't do your job for them. On the phone every few minutes. Trying to sell FSAVCs and endowment mortgages. When my dad and a few of his colleagues retired one IFA got them all. He took quite a large proportion of their lump sums. He was going to be with them every step of the way through retirement. A few months later my dad got a letter to say his IFA had retired. A relative of mine was one. All the family had to buy products from her. She didn't like me because I used to read the documents. They always contained details of how much commission she was getting. We still have her FSAVCs which are rubbish. I was saying to my wife the other day how it is so much better to do your own research and know what you are buying than to have an adviser stick a sheet of paper under your nose and say 'sign this'. I'm afraid I could never use one again.
    • Mr Costcutter
    • By Mr Costcutter 3rd Dec 17, 3:05 PM
    • 270 Posts
    • 638 Thanks
    Mr Costcutter
    Do IFAs take their own advice?

    The one I know most certainly does - lives in a 'very nice' house in Richmond and drives a smart car

    I've seen a couple of IFAs in the past and learnt a lot from doing so. I let them 'show me the ropes' and having done so I felt able to go it alone.
    • dunstonh
    • By dunstonh 3rd Dec 17, 4:49 PM
    • 89,863 Posts
    • 56,530 Thanks
    dunstonh
    We still have her FSAVCs which are rubbish. I was saying to my wife the other day how it is so much better to do your own research and know what you are buying than to have an adviser stick a sheet of paper under your nose and say 'sign this'. I'm afraid I could never use one again.
    The fact you still have an FSAVC from that period suggests your DIY research is not up to much either.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • OldMusicGuy
    • By OldMusicGuy 3rd Dec 17, 6:02 PM
    • 196 Posts
    • 359 Thanks
    OldMusicGuy
    I used an FA from HL (ok, not an IFA) and he took early retirement. So he can't have been doing too bad!
    • fred246
    • By fred246 3rd Dec 17, 6:45 PM
    • 912 Posts
    • 497 Thanks
    fred246
    The fact you still have an FSAVC from that period suggests your DIY research is not up to much either.
    Originally posted by dunstonh
    There is nothing DIY about it. It was mis-sold to me by an IFA. I asked another IFA to sort it out and she told me she would charge so much there would be nothing left. I should really claim for mis-selling. It's a bit difficult because the IFA was a relative.
    • Flobberchops
    • By Flobberchops 3rd Dec 17, 7:45 PM
    • 593 Posts
    • 428 Thanks
    Flobberchops
    I think the OP is based on the misunderstanding that they believe an IFA holds the keys to some kind of get rich quick formula, which surely they'd use themselves if they possessed it. I think it's obvious they don't make such claims - at least not any reputable IFA! The IFAs in the room can correct me of course, but I believe their line of work is more about financial planning, wealth management, recommending lifestyle-specific products, and so on.

    Having said that, perhaps you should avoid an IFA who turns up in a rust bucket of a car and wears stained jogging bottoms and t-shirt...
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • HappyHarry
    • By HappyHarry 3rd Dec 17, 8:50 PM
    • 456 Posts
    • 712 Thanks
    HappyHarry
    I think the OP is based on the misunderstanding that they believe an IFA holds the keys to some kind of get rich quick formula, which surely they'd use themselves if they possessed it. I think it's obvious they don't make such claims - at least not any reputable IFA! The IFAs in the room can correct me of course, but I believe their line of work is more about financial planning, wealth management, recommending lifestyle-specific products, and so on.

    Having said that, perhaps you should avoid an IFA who turns up in a rust bucket of a car and wears stained jogging bottoms and t-shirt...
    Originally posted by Flobberchops
    I wouldn't worry too much about the car the IFA turns up in. Many IFAs dont see their car as a status symbol, and see new cars as a waste of money
    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.
    • BananaRepublic
    • By BananaRepublic 3rd Dec 17, 9:36 PM
    • 921 Posts
    • 663 Thanks
    BananaRepublic
    I wouldn't worry too much about the car the IFA turns up in. Many IFAs dont see their car as a status symbol, and see new cars as a waste of money
    Originally posted by HappyHarry
    I've always considered cars an excellent way to throw away money. Anyone with any financial prudence either buys used, or buys new and runs it into the ground.
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