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Drop in well paid using IFA's
Comments
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And again, like in self-dentistry, the penalties for ignorance and incompetence can be very painful.
A dentist has to be trained for a number of years and qualify before they are let loose on the public.
It wasn`t all that long ago that some of these "professionals" were creating work that wasn`t really required just to get more money.
ie: taking perfectly good fillings out and redoing them.
Incidentally, IFA do this from time to time.
They advise that the fund you have could be bettered by switching to another, although there may not be anything wrong with it, just another excuse to get more commission/fees.
This is known as "churning"
While some people might try cutting their own hair, I doubt if many people would seriously try DIY dentistry so this analogy can be safely discounted.0 -
Do IFAs have to publish figures on their average client returns for a number of years?0
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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 like to think I was agreeing with you, and with style.
Thanks for that.
I thought your comment was a bit tongue in cheek in the first place about not taking 2% every year.
2% is a big enough rip off just the once for the little they do.0 -
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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: »Hey, that's not fair! Estate agents don't take 2% of the value of your property every year whether it's gone up or down.
What IFA takes 2%pa?
Traditional trail commission for IFAs is 0.5%.0 -
A dentist has to be trained for a number of years and qualify before they are let loose on the public.
I was in training for several years and still learn from those senior to me if I come across anything that I need help with. Modern IFAs train for quite some time before they are allowed to provide advice, with firms requiring a track record of giving advice without upheld complaints or progression through their own internal training scheme before they will authorise you to give advice.
There's then internal monitoring of cases either by a more experienced adviser or by a compliance team to ensure that the advice is complaint with FSA regulations.It wasn`t all that long ago that some of these "professionals" were creating work that wasn`t really required just to get more money.
ie: taking perfectly good fillings out and redoing them.
Some were, but I doubt you have statistics available as to how widespread it was.Incidentally, IFA do this from time to time.
They advise that the fund you have could be bettered by switching to another, although there may not be anything wrong with it, just another excuse to get more commission/fees.
This is known as "churning"
Churning is specifically against FSA regulations and any compliance department worth having would block such a transaction. Most fund switches these days are done on a platform, which means usually no switching fees and no difference in trail commission between funds.
If you're referring to rebalancing rather than churning, then that's a service that should be offered by IFAs and would need to be paid for somehow, either through trail commission or an agreed fee per review.
The accusation of churning is quite a serious one, do you have specific details as to who does it and how widespread it is, or are you just assuming the worst about IFAs again?While some people might try cutting their own hair, I doubt if many people would seriously try DIY dentistry so this analogy can be safely discounted.
Some people trying to manage their own finances make extremely poor decisions on a par with trying to extract their own teeth. I saw a case recently where someone was on the verge of losing about £30,000 over the next 20 years by failing to draw one of their pensions in time to retain their guaranteed annuity rate, simply because they didn't understand the policy enough to realise that it was a spot guarantee.
Charge for help in that particular instance was under £400, all offset by the annuity commission which would otherwise have gone to the product provider, before you make any assumptions about the cost.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Do IFAs have to publish figures on their average client returns for a number of years?
Naturally there won't be figures for how well an IFA manages the other aspects of financial planning, such as minimising tax, maximising retirement income, managing ongoing cash flows, financial protection, etc. Measuring those would be very difficult.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
I have seen people make horrendous decisions with their own money.
And I have never been contacted by a past IFA trying to churn. These days I do make most of my own investment decisions (and make most of them for the family too) but if I wanted something specialised such as an annuity I would consult an IFA. I would also contact one should I come into a huge life altering amt of money, but only after I'd seen a tax specialist.0
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