How to find a good IFA ?

Tammer

In addition to the sensible advice given in some of the earlier posts, the only extra advice I'd give you is to be clear on how the IFA will be paid (at a general level) and specifically for the products that are eventually recommended to you - and how these payments relate to services that will be provided to you now and in the future.

jem16

whiteflag wrote: »

The software wont, but an IFA asking you your attitude to risk and then putting together a portfolio wont either.

The last two IFAs I talked to asked me a lot more than my attitude to risk.

The skill of the financial planner is to help you find want you want, and then plan accordingly. The cashflow software is not the holy grail, it is merely a tool to help in the planning process.

To be honest I can't see much difference between what you are saying/doing and what the two IFAs I saw were saying/doing.

Not really! Jem i'm surprised that someone like you would dismiss the whole thing without having any knowledge or experience of the process.

You are correct that I personally don't have any experience of the lifestyle planning process. However I have talked to someone who has. Lots of pretty graphs but unfortunately this person seemed totally clueless about the whole process and more importantly the actual investments. There seemed to be no specific strategy to the investment itself.

Now I am quite sure that not all financial planners operate in the same way but this one didn't give me any confidence that the system is somehow much better than an IFA's system which you seem to be totally putting down these days. ( your recent signature says as much)

Most people I have come across never estimate their expenditure correctly so I'm not sure how you can use these estimations to form the basis for a 20/30 year plan.

However please do enlighten me as I'm always willing to listen.

Its quite bizarre that if a business didnt do cashflow forecasts they would be regarded as reckless to say the least, however the mere suggestion that individuals should do the same is met with cynicism.

Businesses have accountants and are used to running a business. They have to keep a tight rein on what comes in and what goes out otherwise the business wouldn't last long.

How many people do that?

whiteflag_3

The last two IFAs I talked to asked me a lot more than my attitude to risk.

Is there a particular reason you had to speak to two?

To be honest I can't see much difference between what you are saying/doing and what the two IFAs I saw were saying/doing.

Yes , its not easy to see via an internet forum

You are correct that I personally don't have any experience of the lifestyle planning process. However I have talked to someone who has. Lots of pretty graphs but unfortunately this person seemed totally clueless about the whole process and more importantly the actual investments. There seemed to be no specific strategy to the investment itself.

Pity- Goes back to what I said earlier about how important it is for businesses to have robust procedures and service that clients clearly understand.

Now I am quite sure that not all financial planners operate in the same way but this one didn't give me any confidence that the system is somehow much better than an IFA's system which you seem to be totally putting down these days. ( your recent signature says as much)

Yes but how many IFAs actually have a defineable system?

Most people I have come across never estimate their expenditure correctly so I'm not sure how you can use these estimations to form the basis for a 20/30 year plan.

Your right, thats why to do the best planning job involves a heck of alot of work, and one that clients really value once they a part of the process.

However please do enlighten me as I'm always willing to listen.

Ive been trying to.

Businesses have accountants and are used to running a business. They have to keep a tight rein on what comes in and what goes out otherwise the business wouldn't last long.

Well if you believe that to be the case, try and imagine that a financial planner is doing the same on an individual basis.

How many people do that?

In this country? Not many !!! Thats why we have the problems we have dont we unfortunately.

jem16

whiteflag wrote: »

Is there a particular reason you had to speak to two?

To make sure the gut instinct I had about one was not misplaced.

Yes but how many IFAs actually have a defineable system?

Define "defineable system".

Your right, thats why to do the best planning job involves a heck of alot of work, and one that clients really value once they a part of the process.

Agreed. However I don't think it's only financial planners that can provide this.

whiteflag_3

Define "defineable system".

A written process outlining exactly when, what & how their service will be delivered to their clients, what systems will be used, clearly stating how much that will cost and also critically stating what they wont be doing as well.

Jem, you and I have been on this forum long enough to know there is huge mistrust in financial advisers in general and I think that the problem is because the above has not been adopted, clients expectations have not been managed. For example even where a good job has been done you get irate posters saying "took a heap of commission and never saw him/her again"). The complaints about performance are normally because the clients didnt understand what they were invested in, but surely advisers need to have a system to make sure that there was understanding, before any investment goes ahead.

Agreed. However I don't think it's only financial planners that can provide this

Well we are going to have to agree to disagree on this one.

jem16

whiteflag wrote: »

Jem, you and I have been on this forum long enough to know there is huge mistrust in financial advisers in general

The problem with internet forums is that you always see the complaints because people are looking to vent their anger somewhere. You will very rarely see the people who are happy with the way things have been handled. You will also see many more complaints when times are bad.

The complaints about performance are normally because the clients didnt understand what they were invested in, but surely advisers need to have a system to make sure that there was understanding, before any investment goes ahead.

I totally agree. However the point I made about the financial planner earlier just highlights that it's not only IFAs who don't always do a good job with this.

Well we are going to have to agree to disagree on this one.

Looks like we are.

I feel there is room for both and if you can find a good financial planner or good IFA then either should do just as good a job. Planning usually ( although not always ) involves a product just as a product usually ( although not always ) involves planning.

I am glad you changed your signature though - IFAs and planners should be working together.

whiteflag_3

jem16 wrote: »

I feel there is room for both and if you can find a good financial planner or good IFA then either should do just as good a job. Planning usually ( although not always ) involves a product just as a product usually ( although not always ) involves planning.

So what your saying is a good financial planner who can also source products from the whole of market (IFA) would be a pretty good bet then?

I am glad you changed your signature though - IFAs and planners should be working together

Yep seemed liked a good idea after a few to many sherrys!:o

jem16

whiteflag wrote: »

So what your saying is a good financial planner who can also source products from the whole of market (IFA) would be a pretty good bet then?

Yes, just the same as a good IFA who takes into account his client's requirements would be a pretty good bet too.

Most importantly what I want both of them to do is actually make sure the client understands it all - planning and product.

Yep seemed liked a good idea after a few to many sherrys!:o

I hope you're on holiday today too then. Wouldn't want your clients getting confused.

whiteflag_3

jem16 wrote: »

I hope you're on holiday today too then. Wouldn't want your clients getting confused.

arent local holidays a wonderful thing

EdInvestor

jem16 wrote: »

Most importantly what I want both of them to do is actually make sure the client understands it all - planning and product.

This may be difficult to achieve, in that once someone understands how to plan his or her financial life and what products to use, the purpose and cost of a financial planner or IFA tends to appear surplus to requirements.

It is not actually after all rocket science once you have grasped the basic issues.

One strongly doubts that it is in planners or advisors' interest to educate their clients - rather, a lot better to keep them ignorant (and preferably bored by the subject) so the advisor can continue to do the work and pocket the fees and commissions.