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

Rollinghome

Meeper wrote: »

I think I stated that the total cost of investments that I did was 1.8 - 2.2% recently, I don't remember saying anything about the "TER normally given for unit trusts".

However, it's quite clear that the poster was referring to unit trusts. http://forums.moneysavingexpert.com/showpost.php?p=49088571&postcount=21 It seems somewhat pointless to discuss investments that are unknown and whose costs can't be verified.

Meeper wrote: »

Quote correct, I did. I provided a quotation for exactly what you and your contemporaries want - transparency and fee-based figures. The quotation of £250 + VAT was, IIRC, based on an assessment of the requirements of the individual and the time it would take to carry out the required research and present the results in an understandable format.

Charging £250 +VAT for your share tips on a value of £700 is a cost of around 45% before trading costs and spreads. Are you for a single moment claiming that anyone would be sensible to accept your offer? Are you so dishonest that you would take their money?

No reputable stockbroker, whom I would guess to have far greater research resources than you, would ever take on someone as an advisory client for such a tiny sum.

Are there really people out there gullible enough to employ someone like you on that basis?

Lokolo

Rollinghome wrote: »

Charging £250 +VAT for your share tips on a value of £700 is a cost of around 45% before trading costs and spreads. Are you for a single moment claiming that anyone would be sensible to accept your offer? Are you so dishonest that you would take their money?

No reputable stockbroker, whom I would guess to have far greater research resources than you, would ever take on someone as an advisory client for such a tiny sum.

Are there really people out there gullible enough to employ someone like you on that basis?

Not quite sure what that has do with anything? Just because that's how much he (she?) charges, doesn't mean anyone has to accept it.

Meeper

Rollinghome wrote: »

However, it's quite clear that the poster was referring to unit trusts. http://forums.moneysavingexpert.com/showpost.php?p=49088571&postcount=21 It seems somewhat pointless to discuss investments that are unknown and whose costs can't be verified.

Of course they were referring to Unit Trusts. The investments I am referring to are also Unit Trusts (and OEICs). My point is that you are saying that "the TER normally given for unit trusts", which is a generic matter. I am saying that my figures of 1.8 - 2.2% are inclusive of all costs in the portfolios I have done, which are portfolios of UTs and OEICs.

Charging £250 +VAT for your share tips on a value of £700 is a cost of around 45% before trading costs and spreads. Are you for a single moment claiming that anyone would be sensible to accept your offer? Are you so dishonest that you would take their money?

No, I'm sure that I wouldn't in this case. But that wasn't the question. The question was asked as to how much I would charge for such work, and the charge was as shown. I notice that you have ignored my explanation of this and that it would only have been 0.42% of the investment amount at £100,000. How convenient of you to miss this particular point.

No reputable stockbroker, whom I would guess to have far greater research resources than you, would ever take on someone as an advisory client for such a tiny sum.

Neither would I, but you're not being fair at all. I was asked for a quotation for a particular piece of work, and I provided it. The amount being invested is irrelevant, because that is the cost of the work involved. Or don't you want the new RDR-compliant fee-charging world of transparency to come about?

Are there really people out there gullible enough to employ someone like you on that basis?

If there are people gullible enough to buy into your annoying and nonsense-based rhetoric, anything's possible.

Rollinghome

Meeper wrote: »

Of course they were referring to Unit Trusts. The investments I am referring to are also Unit Trusts (and OEICs). My point is that you are saying that "the TER normally given for unit trusts", which is a generic matter. I am saying that my figures of 1.8 - 2.2% are inclusive of all costs in the portfolios I have done, which are portfolios of UTs and OEICs.

Would you care to name the UTs where that figure appears in the prospectus? Or would gpop who has thanked your post and says he also works for a financial adviser? Or have you just invented the figures?

Meeper wrote: »

No, I'm sure that I wouldn't in this case. But that wasn't the question. The question was asked as to how much I would charge for such work

No that was not the question referred to.

Let me remind you what you actually did say in response to the question which was from Westy22:

"Without wishing to add fuel to this heated debate, and on a purely practical basis, just what proportion of FAs (employed advisers) or IFAs (independent advisers) would actually be prepared to advise a brand new client wishing to purchase £1,000 of shares, plus invest £100 per month in shares, in a self-trade share trading account?"

To which you answered .

Meeper wrote: »

I would do that, as I recognise that the individuals £1k and £100 per month may be a significant sum for him personally and not something that should be "played around" with.

So would you take their money or not?

Nor did I miss your divertionary reference to the sum of £100,000 though I'm left wondering what sort of a gullible fool would invest that sum on the basis of your share tips rather than use the advisory services of reputable broker for just their normal dealing rate.

It seems as long as there are fools with money then there'll be characters like you willing to take it.

Rollinghome

Lokolo wrote: »

Not quite sure what that has do with anything? Just because that's how much he (she?) charges, doesn't mean anyone has to accept it.

That's right. No one has to accept a loan from a loan-shark either. It doesn't make it morally correct or good financial advice.

Meeper has thanked you for your post. He seems to agree with you that if anyone is mug enough to use him then he need feel no guilt in taking their money. 'Catch as catch can' seems to be his motto. And yours apparently.

Anyone seeking an IFA for advice should be aware that there are characters like him around. This board is nothing if not educational.

gadgetmind

Jegersmart wrote: »

really? and what lower risk instruments are these?

Traditionally, bonds, gilts, cash and property.

I'm not too sure about the first two right now. Or the latter two.

Ark_Welder

Perhaps pproperty management companies and consultancies can be brought into the topic. I'm thinking along the lines of the UK-based, FSA-authorised, fee-receiveing ones that manage collective property investments funds and other 'investment opportunities.

colinscott

Entertaining sparring going on here. As an ordinary member of the public, I have to say I'm with the skeptics on this one. I don't understand, for example, why IFA's need to charge initial and annual charges for putting their clients' in OEIC's (as it seemed someone was suggesting). Surely, these are long term investments, and if they were a decent enough pick in the first place, just leave them alone. Same with a portfolio of equities, which, I have to agree, would be a whole lot cheaper. What would Warren Buffett do?

Ark_Welder

colinscott wrote: »

What would Warren Buffett do?

Charge 4.7% for running a 30%-of-net-assets managed fund.

gadgetmind

colinscott wrote: »

I don't understand, for example, why IFA's need to charge initial and annual charges for putting their clients' in OEIC's (as it seemed someone was suggesting).

Because most people, including myself many moons ago, know so little about investing that they are happy to pay someone else to do it. In boom times, those fees seem irrelevant, but at other times ...

Fortunately, things are changing, and there are plenty of online resources and platforms were people can learn the fundamentals and start to see how important it is to have a balanced portfolio, with appropriate risk, and low fees.

Surely, these are long term investments, and if they were a decent enough pick in the first place, just leave them alone.

I tend to agree, other than pointing out the need for rebalancing. Of course, investment advisers would say that you need to ensure funds continue to perform, and be prepared to switch if a manager seems to lose his magic touch.