It's a bit pervy but...Can I Be An IFA????

Hey_Dude

Dudes,

I'm thinking of changing careers.

I love dealing with people and I just love money saving.

I've got a basic grasp of personal finances - the idea of working as an IFA really does appeal.

Any advice or anecdotes?

What are the options to get qualified - do I need to go to uny or the OU?

Can I learn part-time whilst still working in my current job??

Any help or advice would be most welcome,

Duder

TBeckett100

an independant financial adviser generally specialises in providing investment, mortgage or pension advice. there is little scope to be a money savinge xpert as the job really is to maximise client wealth and tax allowances etc

I am an IFA and have been in the industry. I can point out best savings rates and cash ISAs but bear in mind that you get paid for the business you place.

You do not need to go to university. I started out with a firm of IFAs doing admin and they put me through the financial planning exams https://www.cii.co.uk you can do these yourself privatley if you wish to get qualified in the CF exams (there are several modules).

After admin there is paraplanning where esentially you will look at client data and make decisions for thw IFA, the IFA will present your report and research.

I specialise in investments (100k plus) as I love investment funds and making people money, pensions is Zzzzz and mortgages are frankly a lot of work for little.

As an IFA though I do not turn people down if they need advice, but when you are paid 3% when someone asks for a meeting to discuss a £250 child trust fund voucher, £6.00 doesnt really go much towards a £10,000pm target yet you will spend hours on it.

I dont know where you live Dude but you can study or maybe work for an investment house if one is based locally

hope this helps.

ohmsoft

Hi

I'm not an IFA but did take the CFP exams as stated above part time - in total they took a year and I was not going full pelt (although did have alot of experience in finance) - You could also take CeMap for mortgages - that took me about 6 months on the same basis.

You will note however, that despite the above I say im not an advisor - tbh I find the prospect a tad daunting what with all the targets etc....maybe one day - best of luck to you though

dunstonh

tbh I find the prospect a tad daunting what with all the targets etc

Most IFAs are self employed or director/partners. So there are no targets. Some salesforces exist on the IFA side by they are mostly tied agent or multi-tied.

Problem for any newcomer is that they cant just walk into ownership, partnership or directorship most of the time. They have to spend time with an existing firm which, if you are lucky, will be a local firm who sees potential in you. More often it means spending time with a salesforce. Usually a tied one as well.

There is also the issue that being an IFA is considerably harder than being a tied agent. There is a greater liability as well so going straight into IFA from passing the exams is risky. I remember that it took a good few years to really understand what the training and exams actually taught. That is why most will tell you to go work for a bank for a few years as you get to make all the mistakes on bank customers who generally wouldnt know good advice from bad and you have no liaiblity for it either. And you will make mistakes. usually nothing too bad but the advice will be simplistic at the start. Best do that when you have no liability rather than when you have to pay redress out of your own pocket.

It is also an expensive business. Most people are shocked when you look at the costs of running an IFA firm.

It isnt something you should do on a whim. If you are successful, it will set you up for life. However, most new advisers do not make 2 years before leaving the industry because they cannot make it work. The biggest problem being how they get to see clients. This is also where a period as a tied agent with a salesforce can be useful. You can pinch their clients and change them to cheaper and better contracts when you move over.

Think to yourself, how would you get in front of people to give advice. Remember that you would be an investments adviser and you are not allowed to cold call on investments.

clareyp

The larger insurance companies quite often do schemes where you can retrain which I reckon would be a good bet - they will pay all of you exam fees etc & you get to liase with IFA's to get a feel of the job, Once you have a feel for it you can decide what to do!

TBeckett100

dunstonh wrote: »

Most IFAs are self employed or director/partners. So there are no targets. Some salesforces exist on the IFA side by they are mostly tied agent or multi-tied.

Problem for any newcomer is that they cant just walk into ownership, partnership or directorship most of the time. They have to spend time with an existing firm which, if you are lucky, will be a local firm who sees potential in you. More often it means spending time with a salesforce. Usually a tied one as well.

There is also the issue that being an IFA is considerably harder than being a tied agent. There is a greater liability as well so going straight into IFA from passing the exams is risky. I remember that it took a good few years to really understand what the training and exams actually taught. That is why most will tell you to go work for a bank for a few years as you get to make all the mistakes on bank customers who generally wouldnt know good advice from bad and you have no liaiblity for it either. And you will make mistakes. usually nothing too bad but the advice will be simplistic at the start. Best do that when you have no liability rather than when you have to pay redress out of your own pocket.

It is also an expensive business. Most people are shocked when you look at the costs of running an IFA firm.

It isnt something you should do on a whim. If you are successful, it will set you up for life. However, most new advisers do not make 2 years before leaving the industry because they cannot make it work. The biggest problem being how they get to see clients. This is also where a period as a tied agent with a salesforce can be useful. You can pinch their clients and change them to cheaper and better contracts when you move over.

Think to yourself, how would you get in front of people to give advice. Remember that you would be an investments adviser and you are not allowed to cold call on investments.

just to clairfy i work for an IFA but have a target which helps boost the paypacket. I agree, there is money in it if you are good. One cannot stress enough making contacts and building professional people who could refer to you,

you cant cold call, but I am sure a bit of publicity on here with a signature explaining what you do often helps ....