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Anyone been to an IFA and not been advised to buy Unit Trusts?

I was just wondering if anyone had been to an IFA and NOT been advised to buy Unit Trusts or similar managed investments?

If I was advising a friend/ relative etc about investment I would suggest a portfolio of blue chip shares to start with, and if they had millions I would suggest commercial property. I wouldn't suggest a UT etc as I believe the fees are simply not worth it.

Amongst my more financially sophisticated colleagues most are sceptical about the value of active management ;) I guess I'm a little bit intrigued about typical advice that IFAs give their clients.

So the more the merrier as they say, chip in with any good IFA stories.
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Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 3 December 2011 at 8:35PM
    darkpool wrote: »
    I was just wondering if anyone had been to an IFA and NOT been advised to buy Unit Trusts or similar managed investments?

    If I was advising a friend/ relative etc about investment I would suggest a portfolio of blue chip shares to start with, and if they had millions I would suggest commercial property. I wouldn't suggest a UT etc as I believe the fees are simply not worth it.

    Amongst my more financially sophisticated colleagues most are sceptical about the value of active management ;) I guess I'm a little bit intrigued about typical advice that IFAs give their clients.

    So the more the merrier as they say, chip in with any good IFA stories.
    A friend of mine was recommended a life assurance policy with no investment element. Are you saying they could claim a mis-sale?

    By the way, your single share suggestion is right up there in high risk and for most investors would be an idiotic approach.
  • tescobabe69
    tescobabe69 Posts: 7,504 Forumite
    I'll guess there is someone, but I doubt there are many.
  • jem16
    jem16 Posts: 19,454 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 3 December 2011 at 8:38PM
    darkpool wrote: »
    I guess I'm a little bit intrigued about typical advice that IFAs give their clients.

    An IFAs first and foremost job is to provide advice - that is what they are paid for. That advice may require an investment rpoduct, a non-investment product or it may be do absolutley nothing. It may also be spend some money.

    If a product is required the majority of IFAs can, at the moment, only provide access to packaged products as that is all they are authorised to do so. So they cannot provide shares or property - you would need to see someone different for that.
  • swiss69
    swiss69 Posts: 355 Forumite
    A recommendation of a portfolio of blue chip shares in 2007 would have no doubt included Hbos, RBS, Lloyds and Barclays..........

    A recommendation for commercial property in 2006 would see you looking at some big losses 5 years later......

    The role of an IFA is to assess a clients needs and more importantly the level of risk they are prepared to take.

    That advice could be to invest in 5 deposit based accounts if that is in the best interests of the client. The advice should never be product driven.

    The hard thing to convince people is that an Advisors time is NOT free. In the past, too many advisors have been able to hide behind plans paying commission, giving the client the impression that the provider is paying for the advice and not them.
  • fairleads
    fairleads Posts: 595 Forumite
    darkpool wrote: »
    I was just wondering if anyone had been to an IFA and NOT been advised to buy Unit Trusts or similar managed investments?

    On a similar theme, i've never heard of an IFA advising a client to invest in cash, and regardless of their age.
  • shackalak
    shackalak Posts: 111 Forumite
    I'm not an IFA but I do give advice on investment platform (or rather did for 25 years until I went off sick!). We are required to carry out a full financial review and ascertain the customers attitude to risk. Once we have established this, we have guidelines as to what percentage of the customers capital we can recommend in various asset classes. A customer always needs to have a suitable emergency fund in cash. We also take into consideration the customers existing investment experience (this alters the guidelines). We generally recommend a balanced portfolio across all asset classes, however, for certain customers, we can't recommend any property or equity investments as this falls outside our guidelines. I have definitely had situations where the best advice for the customer has been do do nothing or keep their money in cash.
    I've worked in the Financial Services industry for the last 25 years. When posting on this forum I am not providing any financial advice or representing anyone but simply posting my own personal views. Always make sure you seek suitable Financial Advice from an authorised professional based on your own personal needs and objectives.
  • Meeper
    Meeper Posts: 1,394 Forumite
    In response to the OP, I'm afraid you are showing, once again, your total lack of understanding of the financial advice process. One wonders why you continue this anti-IFA crusade you are on when you are exposed time and again as your points have no foundation or basis in truth and accuracy.
    fairleads wrote: »
    On a similar theme, i've never heard of an IFA advising a client to invest in cash, and regardless of their age.

    With regard to this wholly sensationalist remark which can only have been designed to highlight an inadequacy in IFA-based work, I ask this question - how much experience do you have with this? I ask this because I want to know how many times you have sat in the office of an adviser as he has carried out an appointment with a more senior member of society?

    I'll guess at zero times.

    Last time I advised someone to have an investment in cash was....about 2 weeks ago. The time before that was about 2 months previous. It doesn't happen all that often because someone being of a certain age doesn't necessarily require an investment in cash. There are a load of other factors involved, and your statement only confirms that, like the OP, you have no idea what you're talking about.
    I am an Independent Financial Adviser
    You should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Meeper wrote: »
    In response to the OP, I'm afraid you are showing, once again, your total lack of understanding of the financial advice process. One wonders why you continue this anti-IFA crusade you are on when you are exposed time and again as your points have no foundation or basis in truth and accuracy.



    With regard to this wholly sensationalist remark which can only have been designed to highlight an inadequacy in IFA-based work, I ask this question - how much experience do you have with this? I ask this because I want to know how many times you have sat in the office of an adviser as he has carried out an appointment with a more senior member of society?

    I'll guess at zero times.

    Last time I advised someone to have an investment in cash was....about 2 weeks ago. The time before that was about 2 months previous. It doesn't happen all that often because someone being of a certain age doesn't necessarily require an investment in cash. There are a load of other factors involved, and your statement only confirms that, like the OP, you have no idea what you're talking about.

    I'm not anti IFA, just anti misrepresentation. Typical of which is that in bold above.
    :T
  • lisyloo
    lisyloo Posts: 29,878 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    We had advice from a tied-advisor (Clerical Medical) before who pretty much "gave us the nod" to look at things like cash ISA and NS&I certificates.
    The written advice suggested unit trusts but I guess their superiors would have expected them to do that so they had no choice.

    If you went to a car showroom, would you honestly expect them to tell you to buy a bicycle or get the bus?
    On that basis is it a bit naive to expect fully independent advice (unless they are being paid).
    Be honest - which of us would be prepared to be unpaid to advise people for free?
  • browniej
    browniej Posts: 256 Forumite
    Part of the Furniture
    fairleads wrote: »
    I'm not anti IFA, just anti misrepresentation.

    You haven't actually answered his question though. Perhaps that would be a better way to address the misrepresentation.

    I recently saw an IFA with my 83yr old MIL who needed advice after the death of her husband. She was told that she had adequate income provision in the form of her state pension and husband's occupational pension and really didn't need any more. The advice was to use her cash ISA allowance each year as she is a taxpayer, use a fixed term bond for some of it and he would be in touch again when NS&I reopened their index-linked certificates.
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