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Drop in well paid using IFA's
Comments
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the ifa i met with couldn't backup any of his advice with facts other than past performance and we all know from the dire warnings associated with investing that it cannot be relied upon.
when questioned in more detail he clammed up and refused to advise anymore nd did not return my emails - fantastic!
not surprisong then that we're all getting wise to them and its thanks to MSE that we are
fj0 -
Do you have any data to back up the "mostly poor advice" comments? The Financial Ombudsman Service statistics don't bear this out, as IFAs have a very low proportion of complaints compared with the volumes of business they transact for their clients.
Don't get me wrong, there are some absolute cowboys out there taking advantage of extremely high commission structures, but they're the exception, not the rule.
fj0 -
I use an IFA to manage my pensions and my other investments, I am very happy with the service and I don't feel ripped off in the slightest. Problem these days is everyone has the internet and is an expert on everything, I value my financial advisor as much as my hairdresser or my dentist.0
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If you're smart enough to DIY, then by all means DIY.
But if you think a sizeable sum should all be banged in to a trakcer fund and nothing else, you're not smart enough to DIY.
It's not just the IFAs who are seeing reduced business levels. Barclays have withdrawn from the advice market. Other high street providers have restructured their sales forces as volumes have declined.
If more people are savvy self-investors, that's great. But thinking you know what you're doing and actually knowing what you're doing are different things. Get it wrong on the taxation side and you could be saving up a rather nasty bill in the future. Or missing out on thousands of pounds.0 -
Also an article about the study by AT Kearney over on The Motley Fool website too:
http://www.fool.co.uk/news/investing/2012/02/10/3-awkward-questions-to-help-build-your-wealth.aspxNever let the perfume of the premium overpower the odour of the risk0 -
opinions4u wrote: »Get it wrong on the taxation side and you could be saving up a rather nasty bill in the future.
Absolutely. I left all of this to my accountant and IFA, and both of them messed up big time with pension input periods and carry forward. Fortunately I read up on it myself, spotted where they'd gone wrong, got previous tax returns resubmitted, and created far more comprehensive models for future years.
The IFA is now my ex-IFA, the accountant has redone everything FOC (and has sent a grovelling written apology) and it's all turned out OK in the end.
If you want a job doing right ...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 -
nearlyrich wrote: »I use an IFA to manage my pensions and my other investments, I am very happy with the service and I don't feel ripped off in the slightest. Problem these days is everyone has the internet and is an expert on everything, I value my financial advisor as much as my hairdresser or my dentist.
I do like the analogies.:rotfl:
I do my own hair.
I manage my own finances.
I don't do my own dentistry. But I am keen to understand what my dentist is doing. And I try to do my bit to keep my portfolio of teeth performing well, taking a regular interest and keeping costs down by doing my own brushing, flossing etc.0 -
i would say a closer analogy of an IFA is a used car salesman, or a double glazing salesman.0
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True, but then again if they want good adivce from an IFA (as opposed to an FA) they may also want to go that route.
FA or IFA, how do you know it`s "good advice".
All they can tell you is how an investment has performed in the PAST.
You`ll only know how good the advice was after you`ve paid and continued to pay through the nose a few years later.
Anyone can go online and check past performance but I`ve never seen a site that gave future ones only projected.
If this investment grows at x,y or z amount, you get this, that and the other back.
I`ve never seen a projected performance where it gives a minus one, which is very often the case.
Just like to add to Darkpool`s analogy
estate agents.0 -
opinions4u wrote: »But if you think a sizeable sum should all be banged in to a trakcer fund and nothing else, you're not smart enough to DIY.
there's another thread at the moment with someone who went to an IFA with 80k to invest. she was told to invest in a bond that has 3% annual fees.
tbh i think a tracker is a far better investment than what her IFA suggested.0
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