Questions to ask an IFA?

chris1

My friend has found three IFAs online with the relevant qualifications for retirement options (J04 and J05 or AF3, see https://forums.moneysavingexpert.com/discussion/3916687), and is about to call them.

What questions should he be asking please?

Thanks

Aegis

He should basically outline what he's looking to do and should ask them to give a brief outline as to how they would approach his issues if he appointed them. This gives the IFAs plenty of opportunity to demonstrate that they know what they're doing.

He should also ask any particular questions that are on his mind regarding how they do business, how they charge, etc.

1echidna

Has he got a crystal ball? If not all his wisdom is based on hindsight.

CannySaver_2

Hi

There are a huge range of questions that your friend should as his or her adviser, especially when embarking on a new relationship, I found the following article useful:

http://www.!!!!!!.uk/technical-area/retirement/nine-questions-to-ask-your-annuity-adviser/

I wanted someone who wasn't going to push me down one route, I wanted all the options laid out before me.

I also like to deal with people who are on my wavelength, so when I was looking for a new adviser I also wanted to get on with them and indeed like them. For others I realise this might not be important but for me it was. that's not to say they didn't have to come up with great advice

Hope this helps.

The Canny Saver

Aegis

1echidna wrote: »

Has he got a crystal ball? If not all his wisdom is based on hindsight.

Every decision ever made about the future has been based on hindsight to some extent, so I'm not sure exactly how that was supposed to contribute to the thread.

No-one working seriously as an adviser claims to have a crystal ball or to be able to see the future accurately in any other way.

dunstonh

No-one working seriously as an adviser claims to have a crystal ball or to be able to see the future accurately in any other way.

Although it is fair to say that some people seem to think that an IFA should have a crystal ball. It is wrong but that is the expectation of some.

Nearly_Old

Rather than just questions and answers (although that is the starting point) IMHO it could be better to find an IFA that engages fully in two-way discussion about all the aspects surrounding pensions and retirement as I found that very useful:

I retired last October and prior to that had consulted an IFA. At first the IFA asked me quite a few questions; e.g. had I prepared a retirement budget, had I a complete list of all pension assets, savings and investments, was there are list of "to do" things for after retirement, etc.

I provided all the details and the IFA produced a report that (thankfully) showed that we could achieve our retirement goals. We then had a discussion that focussed very much on our expectations during our retirement. Up to this point I had intended to use Drawdown but the IFA produced a further report comparing Drawdown with purchasing an Annuity. After further discussion I went with the Annuity as the process the IFA had gone through showed that it fitted better with the lifestyle we wanted during retirement. The IFA provided various forms, then went with the Open Market Option and negotiated with the 2 most favourable providers to get the best deal available.

1echidna

dunstonh wrote: »

Although it is fair to say that some people seem to think that an IFA should have a crystal ball. It is wrong but that is the expectation of some.

Isn't it a fair assumption given that the IFA tends to strongly suggests that you will prosper with his guidance?

dunstonh

Isn't it a fair assumption given that the IFA tends to strongly suggests that you will prosper with his guidance?

There are 28,000 advisers. I wouldnt want to assume what all of them do.

An IFA should ensure that your needs and requirements are made aware of and that suitable investments are in place. So, in that respect, they should be more suitable than someone who has no knowledge and goes DIY and picks at random.

1echidna

dunstonh wrote: »

There are 28,000 advisers. I wouldnt want to assume what all of them do.

An IFA should ensure that your needs and requirements are made aware of and that suitable investments are in place. So, in that respect, they should be more suitable than someone who has no knowledge and goes DIY and picks at random.

You talk about suitable investments. What exactly are the supposed implications of that?

dunstonh

1echidna wrote: »

You talk about suitable investments. What exactly are the supposed implications of that?

I don't know. Why don't you enlighten us as to what you think?