Checking IFA advice before investing

dunstonh

So even with the NMA,apart from the initial costs, you've got annual charges of 1.5% AMC for the fund, up to 0.5% for the hidden fund charges and another 0.5% for the IFA. Annual 2.5%.

The IFA 0.5% is paid for out of the normal AMC and is not incremental. For example, if you bought your funds on fidelity fundsnetwork or through an NMA IFA, the difference would be 1% upfront. After that, the annual charges are the same. For many people, that 1% for advice and verification that the right tax wrapper, right product and right portfolio have been chosen is well worth it.

A diverse portfolio should include investments from overseas. It is still difficult to maintain a portfolio of individual shares from companies across the world.

EdInvestor

I've used an NMA too.

Good, I wonder if you two could post the names and addresses of these two NMAs, that will mean we have three (counting dunstonh) that posters could use if they wanted quality advice at a reasonable price.

EdInvestor

And methinks your investments are lazy...

Indeed so, that's the idea.:)Who wants to spend hours every day making money if it's not necessary?

That sort of boring stuff can be left to the professsionals

Chrismaths

All the best guys, I'm heeding the famous sell in May and go away this year. Portugal this evening! Anyone know a bar near Faro Airport where I can see the Mighty Boro go 3 down to Sevilla?

Friday

I have been checking back to this thread but stupidly failed to notice the pages link at the bottom so I thought it had died.

I've had a quick scan through the posts and will go back now for a proper read. Not sure its all strickly on topic but it looks entertaining.

As a small update I have made an appointment with a local IFA found from the unbiased web site and will see him tomorrow. I explained he would be a second opinion and he offered to see me without charge. Not asked the NMA question yet.

I'll post back with the outcome.

jem16

EdInvestor wrote:

Good, I wonder if you two could post the names and addresses of these two NMAs, that will mean we have three (counting dunstonh) that posters could use if they wanted quality advice at a reasonable price.

Sorry Ed - much as I'd like to help other posters on this forum, it's against forum rules.

MSE_Martin wrote:

Forum users should not post their or anyone else’s personal details (full names, email addresses, home addresses or telephone numbers).

I think it would be rather pointless too as it all depends on where you are and what you want from the IFA. I can only suggest that people phone up a few IFAs and ask if they are an NMA and what their terms are.

As you have often said;
"Do your own research"

EdInvestor

Does this apply to a business? Surely not.

I can't say I'm surprised at the lack of response, but it's a pity, nevertheless.

Methinks it will be a while before this New Model thing gets off the ground. Not a single article yet seen in the mainstream press.

Obviously nobody is bothering to do any marketing.

dunstonh

Citywire have a weekly publication called new model advisor. Each week you get about 5 IFA firms listed in it with profiles and they are all on new model basis.

Who does the marketing? Those that take/pay the biggest commissions. To run on 1.0% initial plus 0.5% means you have to be streamlined and monitor budgets. Many of the NMAs are small firms with a handful of advisers. None of whom have the budgets to run any mainstream advertising campaign. Also, there is no shortage of business going through NMAs and and natural growth occurs and is manageable without the need to force a load of business through.

The advertising for NMA is happening on IFA roadshows and network presentations. The need is to get the message to old model IFAs first.

schiff

Chrismaths - bonnes vacances!
Are you psychic or something? 0-3 isn't very far from 0-4. Impressed.

uberzoldat

EdInvestor wrote:

Good, I wonder if you two could post the names and addresses of these two NMAs, that will mean we have three (counting dunstonh) that posters could use if they wanted quality advice at a reasonable price.

I agree with Jem, it is against forum rules, and like you say, people should do their own research to find an NMA if that's what they want. It would be no good posting advisor's details on the site if the people that want to use them are on the other side of the country.

Does this apply to a business? Surely not.

I can't say I'm surprised at the lack of response, but it's a pity, nevertheless.

Methinks it will be a while before this New Model thing gets off the ground. Not a single article yet seen in the mainstream press.

Obviously nobody is bothering to do any marketing.

Maybe the newspapers aren't always the best place to be looking for accurate information..?

Sorry for going off topic, best of luck with your investments, Friday.