IFA's etc. Has anybody ever been to one that has MADE them money rather than charged

grizzly1911

atush wrote: »

If you are being called and chased, it probably isn't an IFA- they don't do that. They might call or write about things to you if you've used them in the past- mostly write. People who (cold) call you are scammers not IFAs.

I am about to use one to set up a new pension. I will not go for ongoing servicing, I will do that myself.

People complain loudly, those that are happy dont speak up.

Perhaps the value add depends on individual needs, age and circumstances.

Someone investing in their 70s for instance with perhaps a 10 year life span, looking for stability and income may not do as well as someone younger, less risk adverse with greater tax efficiencies to be maximised.

bigfreddiel

The_White_Horse wrote: »

Lousy parasitical profession (if you can call it that). Just insurance salesmen really.
.

great post - my thoughts exactly

nice one The White Horse

fj

Glen_Clark

How do you define a 'Profession'?
We don't say 'The Farming Profession' or 'The Building Profession'
Yet what could be more important than growing food or building homes?

atush

I define profession as a job requiring a professional qualification.

Such as, but not limited to, doctors, lawyers, chartered accountants, IFAs, nurses etc.

marathonic

I've never been to an IFA because:

• My employers pension scheme has an AMC of 0.3%. I've seen some references to products with a 0.25% AMC but, even if I could access a product with such charges, the savings would be minimal for me and it'd take a long long time to recover the cost of the IFA. If I had a personal pension that costed 1% and read about 0.25% products being available through IFA's, then I'd seriously consider using one;
• Insurance is all about covering yourself for financial loss, both your own and that of your loved ones. Everyone has a budget for insurance so you have to decide which products are more high-priority for your personal circumstances. It's the minority that can afford ALL the coverage that they might like to have. I'd consider myself pretty clued up financially and did all my research into trusts, etc. By going through the likes of Cavendish Online for life insurance and critical illness, my budget allows me to stretch further with regards to the range of coverage that I can achieve. That being said, most people don't have the drive to do the research that I did. For these people, an IFA is a good option (I'm talking about the majority of the people who have insurance products sourced through their banks, or no insurance at all).

grizzly1911

atush wrote: »

I define profession as a job requiring a professional qualification.

Such as, but not limited to, doctors, lawyers, chartered accountants, IFAs, nurses etc.

What level of qualification do you need to be an IFA? Don't think I would put it in the same class as accountants, lawyers, doctors and allied professions, It used to be NVQ4 level 4 not sure if the "RDR" stuff has beefed it up or just changed the focus. Regulated salesmen.

grizzly1911

marathonic wrote: »

I've never been to an IFA because:

• My employers pension scheme has an AMC of 0.3%. I've seen some references to products with a 0.25% AMC but, even if I could access a product with such charges, the savings would be minimal for me and it'd take a long long time to recover the cost of the IFA. If I had a personal pension that costed 1% and read about 0.25% products being available through IFA's, then I'd seriously consider using one;

In the example I made - a 75 year old the initial charge would amount to 0.3%pa, over 10 years with a 0.5% "service" fee on top plus administration charges of the various vehicles it all adds up especially for a cautious/semi cautious portfolio. Ideal hunting ground though.

Aegis

The_White_Horse wrote: »

them money for something they could have done themselves.

I am always being called and chased by these people and it always involves me paying them. I thought they were supposed to manage my wealth and make me richer, not make themselves richer.

With all due respect, this just sounds silly. If you hire someone to work for you, of course you're going to pay them. People don't work for free unless they're volunteers with income from other sources, and that doesn't describe the vast majority of people working in a full time job.

If I didn't charge people for my time, I'd go out of business and wouldn't be able to keep advising, so I must charge fees otherwise my clients don't get to keep having my advice.

Naturally I'm not purely altruistic, I want to make a decent living too.

if these people made me £2 I wouldn't mind paying the 50p for it. However, it seems to be the other way around.

In what way does it seem to be the other way around?

Lousy parasitical profession (if you can call it that). Just insurance salesmen really.

By the definition above, all professions are parasitic. Every professional I know is paid, either by the state or by their clients. People deem the service provided to be worth the cost and pay, or they do without. I'm therefore not sure why you are singling out IFAs when so many others do much the same, if not considerably worse.

As for insurance...

"and what if you die?" "and what if your wife dies" "and what if everyone you know dies" And what if you lose your job? and what if you die and lose your job and lose your wife? WE HAVE AN INSURANCE PRODUCT FOR ALL THESE CIRCUMSTANCES.

Insurance isn't a fun subject, and many people go years without thinking about the consequences of illness or death. However, a family can often ill-afford to lose a breadwinner, potentially losing homes or sacrificing quality of life to make ends meet. Insurance policies set up correctly can ensure peace of mind for the life assured that in the event of something tragic happening to them, their loved ones will not be left financially vulnerable in addition to dealing with the emotional devastation caused.

Anyone who can have an in-depth conversation about the need for insurance and the types that are available is doing their clients a service. Even if the client then decides not to proceed, at least they now know about what's out there.

I'm failing to see why this should be considered contemptible?

Aegis

doughnutmachine wrote: »

yeah, I know what you mean.

but at the same time I honestly think the IFAs have too loud a voice here. in real life most people I meet say IFAs aren't worth the money. It would just be good if more people posted their experiences here (good or bad).

I'm all for that. However, as pointed out above, people don't tend to go online and explain their experiences unless they're poor. Ranting is common, praising less so. As such, when you hear about people using an IFA, you are far more likely to hear those who have had a bad experience than those who have been content using the same person for advice for the last 20 years or so.

Aegis

atush wrote: »

If you are being called and chased, it probably isn't an IFA- they don't do that. They might call or write about things to you if you've used them in the past- mostly write. People who (cold) call you are scammers not IFAs.

I am about to use one to set up a new pension. I will not go for ongoing servicing, I will do that myself.

People complain loudly, those that are happy dont speak up.

Some IFAs probably cold call. In theory there's nothing wrong with it as long as preferences are being checked against databases and the calls are carried out in a compliant fashion.

In reality, I generally assume that anyone cold calling me is doing so for nefarious purposes, and tend to say much the same to people on here.

I certainly don't think it's very professional behaviour, and imagine it's far too easy to be non-compliant without being easily traceable.