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

atush

I don't think IFAs have too loud a voice here. If anything, they give their time and information freely to all. So i'd welcome more of them- with the exception of one I can think of, they all give good impartial information.

Better than most here anyway, who don't say what they do for a living?

Aegis

grizzly1911 wrote: »

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.

Currently the minimum requirement is a level 4 qualification, a Statement of Professional Standing from one of the awarding bodies and, as part of that process, a minimum of 35 hours of ongoing learning each year (in practice a lot more is generally going to be required). It used to be level 3, so the requirement has been beefed up a bit.

Many of the good IFAs are also going on to level 6 already, to Chartered or Certified status. Level 6 is deemed to be equivalent difficulty (though not volume) to a Bachelor's degree, which takes several years of study to achieve even for academically-minded candidates.

We are regulated, and we do have to sell our services, just like almost every other professional.

Aegis

grizzly1911 wrote: »

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.

That's assuming a 3% initial charge. It's also assuming that the advice doesn't add any benefit. What if the IFA reduces that 75 year-old's inheritance tax liability by 30% as part of their recommendations?

Unless you factor in the benefits, the cost in isolation is fairly meaningless.

badger09

atush wrote: »

I don't think IFAs have too loud a voice here. If anything, they give their time and information freely to all. So i'd welcome more of them

Agree with this bit :T

MurrayJ2013

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.

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

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

"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.

If you don't want an IFA. Don't use one. Can always do it yourself as they say...

atypical

Glen_Clark wrote: »

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?

Aegis went through this a while back here:
http://forums.moneysavingexpert.com/showpost.php?p=44308168&postcount=6

atush

If you don't want an IFA. Don't use one. Can always do it yourself as they say...

And go t*ts up too lol

grizzly1911

Aegis wrote: »

Many of the good IFAs are also going on to level 6 already, to Chartered or Certified status.

We are regulated, and we do have to sell our services, just like almost every other professional.

You are right anybody providing a service needs to sell their knowledge and skills.

Some professions require greater knowledge and skills than others and some will be easier for the purchaser to assimilate and provide for themselves. For others they either have to or will choose to pay.

IMO financial advice falls in the relatively easy camp although I don't dispute that others don't have a clue. I can change the oil in our cars but choose not to. Brain surgery or even eye surgery falls in the difficult camp.

Aegis

atypical wrote: »

Aegis went through this a while back here:
http://forums.moneysavingexpert.com/showpost.php?p=44308168&postcount=6

Cheers - I'd forgotten about that. Some of it has changed following the introduction of the Retail Distribution Review additional regulations, but if anything I'd say the case for IFAs to be considered professionals has, if anything, strengthened somewhat as a result.

Aegis

grizzly1911 wrote: »

You are right anybody providing a service needs to sell their knowledge and skills.

Some professions require greater knowledge and skills than others and some will be easier for the purchaser to assimilate and provide for themselves. For others they either have to or will choose to pay.

IMO financial advice falls in the relatively easy camp although I don't dispute that others don't have a clue. I can change the oil in our cars but choose not to. Brain surgery or even eye surgery falls in the difficult camp.

I'd agree that a lot of financial planning theory can be picked up with study, certainly at the basic levels. I tend to find that my clients either can't or don't want to do that learning or put the time into monitoring their affairs on an ongoing basis, and that's where I add value for them.