Is there such a thing as a truly independant IFA

doughnutmachine

atush wrote: »

But like you I am tired of the anti IFA agenda by some incl bigfreddie who I may have implied somewhere today was a child. Maybe because some here are actually children mascarading as adults, and maybe because he was acting childishly. Now at least I know who reported the post (if it was removed have no idea). but unlike Donut, I didn't call anyone stupid.

you really think there is an anti IFA agenda? maybe some people just think investors could save money by DIY? after all the name of the website is "moneysavingexpert"... it's not "supportIFAsatallcosts", or even "becomeacliqueofpeoplethatthankeverythinganIFAposts".

dunstonh

doughnutmachine wrote: »

you really think there is an anti IFA agenda? maybe some people just think investors could save money by DIY? after all the name of the website is "moneysavingexpert"... it's not "supportIFAsatallcosts", or even "becomeacliqueofpeoplethatthankeverythinganIFAposts".

The site is about value for money. DIY and making a mess costing you more than it would by getting professional help is not money saving.

atush

doughnutmachine wrote: »

you really think there is an anti IFA agenda? maybe some people just think investors could save money by DIY? after all the name of the website is "moneysavingexpert"... it's not "supportIFAsatallcosts", or even "becomeacliqueofpeoplethatthankeverythinganIFAposts".

I am a DIY investor. But unlike you, I can see that some might need one. I will if I ever look at annuities. Some just use them because they prefer not to DIY due to time/inclination. A bit the way some wash their windows, and others hire someone. I know how to change oil, and wiperblades. Doesn't mean I bother doing it.

But yes, there are many here with huge anti IFA chips in their shoulders, calling them crooks and the like. And I, although not one and dont know one personally, don't like that kind of bullying. And some confuse IFAs with FAs.

Given most of them have admitted they have never used one, I find it astonishing.

Sorry I accused you of having my post removed- it is still there

jem16

doughnutmachine wrote: »

1. How long does it really take to have a chat with a client and find out his net worth/ income and when he wants to retire? Couple of hours?

The chat could well be a couple of hours but that's only the start.

2. Tax planning, like put the max amount into your isa and pension?

What would be the point in gaining 40%/50% tax relief in a pension to pay 40%/50% tax in retirement? Bad advice I'm afraid.

Any more detailed tax advice is best left to an accountant?

An accountant wouldn't have a clue as to which tax wrapper is most suitable - or no tax wrapper for that matter.

3. You mean where to hold the chosen funds? Is that advice worth a couple of thousand to you? How about using google to find the best platform?

Presumably the numerous people who keep asking that question on the Savings & Investments board haven't got Google?

5. Bed and ISA? You mean make use of the full years cgt entitlement?

Only one reason. What about the rest?

6. You mean the ostrich farming investment I made might not have been one of my better decisions?

Again judging by the number of people falling for pension scams it seems that that is exactly the type of decisions some people make.

It just seems to me that the advice given by an IFA to a typical client is common sense or could be learned in a couple of weeks of research. Sorry, I personally don’t see the worth of spending thousands each year on that type of help….

You don't know what the typical advice is or isn't as you have never used an IFA.

Of course some people might be happier with the help of an IFA, and that is their choice. But do I think I’m losing out by not having an IFA…. A definite no

That is your choice and your prerogative. You don't think it brings any value to your financial wellbeing and for some that will be true.

However for many, the wrong decisions will cost them more than they would pay an IFA. Unfortunately, just like previous discussions with your alter egos, you don't or won't see that.

mania112

doughnutmachine wrote: »

for me it just seems that a lot of IFA clients pay a lot of money for little in return. i mean seriously how hard is it to do an annual projection for a client? maybe a few minutes in excel?

how hard is it to "rebalance a portfolio"? that just means selling shares in a top performing sector and investing the money in a bottom selling sector?

ok, these skills have a worth to IFA customers, but not a couple of thousand pounds worth.....

i just object to people coming on here making out that IFAs can do no wrong - now that really is a childish attitude.

Thoughts:

- Excel? No, that's a bit primitive. Much more sophisticated applications are used that are customised for the use of financial professionals (like an IFA).

- Portfolio Rebalancing? I agree that's a very minor part of an IFA's job, most modern products have the ability to auto-balance.

- If you mean Fund Recommendation and Switches I'm sure you can appreciate that DOES take some time, knowledge and expertise.

- How can YOU (someone who seems to know a little about this) question how much someone else values this kind of work. The kind of work you have barely understood and correctly assumed? Does a premiership footballer really deserve £80k a week?

Paying an IFA £2k (as you say) could be very valuable to someone who has no clue where to start? £2k could be seen as a long term saving when talking about a pension transfer into a contract which costs less.

Besides, have you ever seen an IFA driving a Ferrari? The cost of being an IFA is great - it's not a £2k profit in your example.

If it was easy money the country would be flooded with them. I wonder what you do for a living?

doughnutmachine

mania112 wrote: »

Thoughts:

- Excel? No, that's a bit primitive. Much more sophisticated applications are used that are customised for the use of financial professionals (like an IFA).

Paying an IFA £2k (as you say) could be very valuable to someone who has no clue where to start? £2k could be seen as a long term saving when talking about a pension transfer into a contract which costs less.

i was going to say that projections values should be the same no matter if you use excel or some expensive bespoke system, then i thought maybe the financial industry maybe used a bespoke system for all those endowments sold in the 1980s...

but for someone with a moderate portfolio they could be giving 2k each year to the IFA. ok, fair enough maybe thats adding value to the client, however.....

doughnutmachine

jem16 wrote: »

That is your choice and your prerogative. You don't think it brings any value to your financial wellbeing and for some that will be true.

Amen to that! That's the point i've been making! :T

atush

But, for many the money could be well spent?

The plain fact of the matter is, not everyone has the time or the inclination to run their own financial affairs. Some have been know to pay to get their tax forms filled out ;-)