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Looking for an IFA - I will pay 5% maybe 10%!
Comments
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bigfreddiel wrote: »interesting twist on my conjecture - i wonder what the stats show private vs nhs?
Hard to judge due to selection bias, but you get more and faster diagnostics going private. If my father in law had benefited from this, his lymphoma would have been diagnosed far sooner, which would have given him a better outcome. My GP spent months giving him laxatives as he thought the lump was constipation!
Another way of looking at this would be to ask if anyone would use free investment/pension advice from HMG?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Nobody in the medical community would agree to pay you if you got ill, in much the same way nobody in the financial services sector will pay you if your investments fail. The doctor couldn't help the fact that an airborne pathogen gave you bronchitis, but they will try to help fix it. In the same way, your IFA can't help that in the last month or two the FTSE100 has shedded 15-20% of its value, but they can (and should have) made sure your investments married with your capacity to accept that losses are a natural part of investment.
If you want the return you have to be prepared to take the risk. The risk isn't the fault of the IFA, or the fund manager, or the man down the pub who reckons we'll all be using food stamps next year, it's a combination of myriad factors. Deal with it.
I am an IFA, but nothing I say on this forum constitutes financial advice. Always draw your own conclusions and always do your own research.0 -
i think the main difference between the medical profession and the financial services profession is that the medical profession can prove they have a positive impact on their "clients".
why does the financial industry find it so hard to prove that active management beat trackers? what type of mug buys unit trusts that charge 2.5% a year in fees?
It seems to me that clients of IFA's are expected to take all the risk, while IFAs take a good chunk of the rewards. Fair enough going to an IFA if your a bit stupid and inherit some money, but if someone is smart enough to save money they will likely be smart enough to invest it themselves.0 -
Fair enough going to an IFA if your a bit stupid and inherit some money, but if someone is smart enough to save money they will likely be smart enough to invest it themselves.
Broadly, I agree with your position. I'm quite happy to manage my own investments, and I have reduced my average TER from 1.8% to 0.3% over the last 3 years.
However, there is a good chunk of people who think they are smart enough to manage their own money, but don't really understand even the basics of asset allocation, tax efficiency, etc. (And maybe I'm one of them...:))0 -
why does the financial industry find it so hard to prove that active management beat trackers?
What has that got to do with this thread?what type of mug buys unit trusts that charge 2.5% a year in fees?
Typically one that does not want to do their own investments or will not pay for an IFA to do it. So, they pay for it in fund chargse where the fund manager will do it.It seems to me that clients of IFA's are expected to take all the risk, while IFAs take a good chunk of the rewards.
What risk?Fair enough going to an IFA if your a bit stupid and inherit some money, but if someone is smart enough to save money they will likely be smart enough to invest it themselves.
You have just accused the majority of the population as being stupid.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You have just accused the majority of the population as being stupid.
Being under-informed isn't stupid, choosing to remain so is.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Being under-informed isn't stupid, choosing to remain so is.
For many people, especially those using IFAs (rather than tied agents), its not about being stupid or under-informed. Its about having better things to do with their time.
You can DIY on anything if you want to. Some will do a perfectly good job, some will scrape by and others will make a complete pigs ear of it.
I will pay to get tradesmen in to do a job because they can do it better than me and it will cost me less than doing it myself. Financial advice is just the same.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I will pay to get tradesmen in to do a job because they can do it better than me and it will cost me less than doing it myself. Financial advice is just the same.
I get trades in to do some jobs, but I still find it extremely valuable to understand the fundamentals of what they are doing.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »I get trades in to do some jobs, but I still find it extremely valuable to understand the fundamentals of what they are doing.
Same applies to financial advice as well. I dont find many nowadays that dont want to know the basics. You do still get some that just say "tell me where to sign" but I find them extremely frustrating. They are the most dangerous type of client as they are the ones that are most likely to complain.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I'm not an IFA but I would be happy to enter into such an arrangement with you if it was possible, for a suitable time for having the money invested.bigfreddiel wrote: »I'mlooking foran IFA to handle £400k - I would be more than happy to pay him 5%, maybe even 10% + VAT on the increase in value of my portfolio on an annual basis - so if my portfolio drops in value he pays me - would any IFAs work on that basis - no doubt if they're any good they would!
But the targets would be key. Could I still get paid for beating the market even if the returns were low, or negative after inflation?bigfreddiel wrote: »In fact I would be happy to pay an increasing percentage if agreed targets were met.
How about us agreeing that if the investments I manage drop by less than say the FTSE I still get paid and that it's OK if they go up by a bit less than the FTSE when it goes up, provided they do at least go up when it does?
If you don't like that offer, how about me working to ensure that you don't lose any capital (£400,000 at the start, at least £400,000 at the end) and get at least some of any increase in the value of the FTSE? If you lose any money at all, I refund everything you've paid me.
There are active managers who avoided the areas with big drops and others who moved more into cash to reduce the effects. As an individual, I had also moved more into cash and reduced the effect of the drops. But there's no guarantee of success, investment managers aren't fortune tellers, who could retire rich in days if they were.Wait, you mean paying for active management won't get me out of the market before it drops?
I'm sorry that I can't guarantee that your health will improve but I am happy to agree to make you a payment if you become ill or die, perhaps we can agree a list of conditions that you don't get, what you'd like me to pay if they happen and how much you'll pay me for my service?The thing is I've got a really healthy body, and it only seems to make sense to me that a doctor should guarantee good, in fact, improving health. I'm happy to pay the doctor handsomely for every year my health improves, and I really do feel if the doctor is worth his salt this should be the case.
God forbid the doctor allows me to become unhealthy, well, he'd better compensate me for my troubles, after all, what am I paying him for otherwise?!.0
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