Independent Financial Advice

JOBEN

Hi
I thought that my husband and I should get some IFA predominately for pensions but obviously other stuff as well.

Anyway 2 friends gave me the details of their IFA's, I have spoke to both and dont know which one to choose (not very good at making decisions LOL) they are both independent but one charges and the other doesnt. The one that charges says will look at commissions etc but when getting the best deals etc sometimes the commission isnt good and thats why he charges. The other one said he gets paid on commision or fee but generally just commission unless loads to invest etc which might be better fees.

This is all a minefield to me, can anyone advise
Thanks in advance
Jo

dunstonh

Anyway 2 friends gave me the details of their IFA's, I have spoke to both and dont know which one to choose (not very good at making decisions LOL) they are both independent but one charges and the other doesnt. The one that charges says will look at commissions etc but when getting the best deals etc sometimes the commission isnt good and thats why he charges. The other one said he gets paid on commision or fee but generally just commission unless loads to invest etc which might be better fees.

What you have been told is logical. Smaller transactions do tend to be cheaper on commmission basis. Larger ones on fee basis.

This is all a minefield to me, can anyone advise

Either of the IFAs can

You have three main options.

1 - pay by fee and write a cheque for it but products are set up with no commission.
2 - the adviser is paid commission but the product charges are higher and will eventually cover the fee and possibly more
3 - agree a fee but have it taken out of the product to that value. (this is a more modern option but will be the standard from 2012).

Both advisers seem upfront with their charging options but its up to you which you prefer. However, the rule of thumb is that smaller amounts are cheaper on commission and larger are cheaper on fee.

whiteflag_3

JOBEN wrote: »

Hi
I thought that my husband and I should get some IFA predominately for pensions but obviously other stuff as well.

Anyway 2 friends gave me the details of their IFA's, I have spoke to both and dont know which one to choose (not very good at making decisions LOL) they are both independent but one charges and the other doesnt. The one that charges says will look at commissions etc but when getting the best deals etc sometimes the commission isnt good and thats why he charges. The other one said he gets paid on commision or fee but generally just commission unless loads to invest etc which might be better fees.

This is all a minefield to me, can anyone advise
Thanks in advance
Jo

Do they offer an ongoing service?

If not why not?

If yes how do you pay for that?

IMO fees are the clearer option.