Financial Advisor - recommendations

darkpool

opinions4u wrote: »

Even if he only sells Everest glazing?

What a pointless example.

ok, how about a used car salesman calling himself "independent personal transportation advisor"

Sceptic001

darkpool wrote: »

ehhhhmmmm you really think it is a bad idea to read a book about investment? why do you think it bad advice to ask friends for advice on investments?

when you buy a car or house would you not read up on the subject or ask friends their opinion?

No, I would ask a qualified engineer or a chartered surveyor. They have insurance if they screw up.:D

darkpool

Sceptic001 wrote: »

No, I would ask a qualified engineer or a chartered surveyor. They have insurance if they screw up.:D

you've lost me. you'd ask an engineer or surveyor about investment? why would you do that?

dunstonh

you really think it takes a couple of years to get your head round the concept of ISAs and SIPPS? How about trackers? How many years study before you got to know the pros and cons?

I would say more than 2 years.

ohhhh i'm terrible sorry. i was under the impression that active funds paid "trail commission" to the IFA that flogged the fund to the punter.

i'm sure we can all agree that commission is a sign of being a salesman, and there's nothing wrong with that. but when salesmen label themselves "independent" and "advisors" it is a bit misleading.

it's a bit like a double glazing salesman calling himself a "independent wall visibilty advisor"

You do realise that going with a fee and agreed remuneration sees commission rebated or offset against the fee? Its not fee and commission.

i'd think a reasonable intelligent person could understand an ISA in well under an hour of study.

Well, that thread on basic investments a couple of weeks ago just showed that you couldnt grasp the basics and that went on for over a week.

Knowing you have google and can look it spoils it a little but try and be honest with yourself and tell us if you know the answer to his question. Its not difficult by any means but it highlights that there is more to it than you think:

1 - Why might a portfolio lying on the efficient frontier deliver less than optimal performance over the next five years

darkpool

dunstonh wrote: »

I would say more than 2 years.



You do realise that going with a fee and agreed remuneration sees commission rebated or offset against the fee? Its not fee and commission.


Well, that thread on basic investments a couple of weeks ago just showed that you couldnt grasp the basics and that went on for over a week.

Knowing you have google and can look it spoils it a little but try and be honest with yourself and tell us if you know the answer to his question. Its not difficult by any means but it highlights that there is more to it than you think:

1 - Why might a portfolio lying on the efficient frontier deliver less than optimal performance over the next five years

ehhhhhhmmmmm 2 years for someone to understand ISAs and SIPPs? is it a full moon tonight?

you speak for every IFA in the country? you suggest not one of them takes a "trail commission"? commission is what a salesman gets for selling something. true advisors like lawyers don't get commission.

efficient frontier? no i don't know what that is. but do i need to? i've been investing countless years and i've never heard of that. but knowing jargon doesn't mean you are intelligent or offer a good service. In all honesty that's the type of question david brent would ask in the office

dunstonh

efficient frontier? no i don't know what that is. but do i need to? i've been investing countless years and i've never heard of that. but knowing jargon doesn't mean you are intelligent or offer a good service. In all honesty that's the type of question david brent would ask in the office

Perhaps it would be better that you don't criticise those that do know when you don't understand.

ehhhhhhmmmmm 2 years for someone to understand ISAs and SIPPs? is it a full moon tonight?

what about all the other things you need to understand and then not just the terms but when its best to use them. I would say its 2 years at least just to understand the basics. It can take many many years to build up real knowledge and understanding and then application of that knowledge.

darkpool

dunstonh wrote: »

Perhaps it would be better that you don't criticise those that do know when you don't understand.



what about all the other things you need to understand and then not just the terms but when its best to use them. I would say its 2 years at least just to understand the basics. It can take many many years to build up real knowledge and understanding and then application of that knowledge.

ehhhhhhmmmmm i thought this forum was about debate? you suggest you shouldn't be criticised because you know what "efficient frontier" means?

i think you underestimate the intelligence of a lot of people in the uk. if someone has the intelligence and self control to save a sum of money i think it likely they have the ability to research and decide how to invest their money.

dunstonh

ehhhhhhmmmmm i thought this forum was about debate? you suggest you shouldn't be criticised because you know what "efficient frontier" means?

As usual, you miss the point. You are firing off scattergun accusations on a subject you know nothing about. Not knowing a subject is perfectly normal and fine. However, making accusations and snide comments on the subject you know nothing about is pointless. It isnt helping the OP and is their thread, not yours.

i think you underestimate the intelligence of a lot of people in the uk. if someone has the intelligence and self control to save a sum of money i think it likely they have the ability to research and decide how to invest their money.

So, if someone drives car, that makes them a mechanic. If someone turns a tap on, that makes them a plumber. If someone applies a plaster, that makes them a doctor?

darkpool

But you agree that someone that gets commission selling a product is a salesman?

dunstonh

darkpool wrote: »

But you agree that someone that gets commission selling a product is a salesman?

I don't think it is as easy to give a yes/no answer to that. Commission certainly allows business models to exist that are sales based. After all, lets remember that is how the banks work and all the old insurance tied sales forces (hint in the name there - salesforce).

It does allow some IFAs to work on a salesforce model. However, that doesn't mean all will. The figures the FSA publish on commissions show that the typical maximum was 3%. Yet the average taken was 1.8%. So, it clearly shows that many are agreeing remuneration in advance.

The fact that some salesforce business models do exist not mean all business models are salesforces. Client agreed remuneration is the only way many firms do business now. They dont do commission at all. it is going to be irrelevant anyway in 18 months when commission no longer exists.

The response I have frequently given (as have others) is never use a salesforce for advice. It doesn't matter if its independent, multi-tied or tied. Its not just because the sales pressure but also because they tend to have higher turnover of staff and many employ trainees are are just using the firm to get qualified and get clients handed to them on a plate. Experience matters and it does take many many years to understand thing. You dont want a trainee, even if they are a very nice person.