How to pay IFA

ricky.patel89

I'm looking to start an investment portfolio, I know very little about investment, as you may have seen my previous posts I'm looking to have a well rounded and balanced portfolio one which I can expand over time.

When looking for an IFA, should I look for one which asks for a fee or commission? My Dad has one but i prefer not to use him as he is quite useless. Also how often do you have contact with them?

Thanks.

dunstonh

When looking for an IFA, should I look for one which asks for a fee or commission?

Whichever option is cheapest for you. Size of investment usually comes in to play here. Smaller is often better under commission. larger is better on fee.

Also how often do you have contact with them?

Depends on the service agreement you put in place (if you have one - some will be transactional rather than servicing - i.e. you contact them if you need them. Whilst servicing will contact you).

juicyjude

Dont know about this transactional/servicing. I suppose every IFA is different, but I have an annual assessment of how things are going in January. I also am free to contact my IFA at any time if I am concerned or need to know anything about my investments.

dunstonh

I suppose every IFA is different

Yes. There are many different business models.

Dont know about this transactional/servicing.

Transactional is one off advice. Or ad hoc advice each time you ask for it. Servicing is where there is a pro-active review in place to rebalance portfolios, review, bed&ISA and other things. Yours sounds like servicing juicyjude.