Commission to IFA

bigfreddiel

thenewwoo wrote: »

Ok so, dunstonh, before January 2013 would you have sold someone a pension and in formed them of the commission you would receive and inform them that part of the monthly contributions they were to pay would be used by the pension company to repay that commission?

good question,and i'm sure dunstonh would have been completely upfront on his fees and commission - after all a chap has to make a living now doesn't he.

cheers

fj

bigfreddiel

dunstonh wrote: »

Years ago, I wanted some garden work and part building done. One quoted £1000. One quoted £2000 and the other quoted £10,000.

none of those quotes are reasonable - get a fourth one

cheers

fj

bigfreddiel

atush wrote: »

Do you know how to do a risk profile?

of course - its not difficult

fj

fairleads

mania112 wrote: »

So I wrote an annual review yesterday for someone who had made circa 20% in the last 12 months (in a range of asset classes, primarily using AXA's Elite range, check it out if you like to 'DIY')

[calculator ready?]

If the client started with £100,000 he would now have £120,000.

Your proposal would be to charge them 3% on £20,000 = £600.

0.5% on £120,000 = £600 (and that 0.5% is paid monthly, from a lesser amount throughout the year, so it would be less than that).

How many times does a fund fall in value from one year to the next?

Your point... has no point.

I think very few DIY ers would invest in fund of funds of funds - such as the AXA Wealth Elite products - with triple costs, for barely average performance

mania112

fairleads wrote: »

I think very few DIY ers would invest in fund of funds of funds - such as the AXA Wealth Elite products - with triple costs, for barely average performance

Wouldn't be 'triple costs' for a DIYer though would it?

What WOULD a DIYer invest in?

dunstonh

fairleads wrote: »

I think very few DIY ers would invest in fund of funds of funds - such as the AXA Wealth Elite products - with triple costs, for barely average performance

1% TER is not triple cost

atush

OK, from the newspaper.Telegraph (Sat 10/08). If these are correct or not, I don't know but is from Unbiased.co.uk supposedly.

Initial report and review- 500
Set up a 200/month pension- 500
Set up a S&S isa with one years contribs- 400
investment strategy for 50K inheritance- 1500
100K pension pot Annuity- 1500.

They said these prices (all in GBP) would be due to fall as more advisers post their charges.

doughnutmachine

atush wrote: »

OK, from the newspaper.Telegraph (Sat 10/08). If these are correct or not, I don't know but is from Unbiased.co.uk supposedly.

Initial report and review- 500
Set up a 200/month pension- 500
Set up a S&S isa with one years contribs- 400
investment strategy for 50K inheritance- 1500
100K pension pot Annuity- 1500.

They said these prices (all in GBP) would be due to fall as more advisers post their charges.

to me these fees seem reasonable. if the average MSE reader knows what a fair price to pay for advice is he is less likely to get ripped off by an IFA (like the OP was)

doughnutmachine

tell_it_how_it_is wrote: »

I decided I'd go it alone after having a meeting with an IFA last year. Unfortunately, despite me saying I'd be interested in transaction/fee only, he tried in person, via phone, and via email to get me to agree to an ongoing commission. I also wasn't comfortable with no reasoning as to he suggested why one pension should be moved.

Ironically, a work colleague showed me his pension statement just today, showing commission payments of almost £60 a month to the very same IFA. He'd been paying it since 2010, and has had no contact from them since - so they've taken out in excess of £2k in that period.

I have to admit my perception of IFAs is that they give a hard sell and then charge bucket loads for little actual work.

I'm not saying no one should ever go to one, but if they do they should be a little sceptical of what the IFA says....

dunstonh

I have to admit my perception of IFAs is that they give a hard sell and then charge bucket loads for little actual work.

That perception does not match reality. The FOS has praised IFAs a couple of times in recent years. Most recently, over complaint handling which showed that the majority knew their clients and were able to show the advice was good. Most FOS complaints with the FOS are rejected. IFAs only account for 1% of complaints at the FOS. No-one can claim perfection but the reality does not match the perception you have. Perhaps you are tarnished by FAs and insurance agents who have a much worse reputation within the industry but many consumers would not be able to tell you the difference.