Investors dumping IFAs by the bucket load

bigfreddiel

It's been reported that 30%+ of investors that have used an IFA in the last fove years are dumping them and going for the diy approach.

People just don't like being taken for a ride by "hidden" charges and unscrupulous practices - you disagree and say everything is up-front - well I say the figures speak for themselves!

After all most IFAs or more precisely FAs are actually just salesman with no substantial qualifications - its hardly degree standards needed to sell a nice commission earning policy (oh - of course RDR has stopped that hasn't it!)

Anyway, the average cost to set an ISA up is £400 for a £10k portfolio - marvelous value - but anyone can do a diy job just as well for £0 and be just as good at fund/stock picking - in fact a monkey with a pin does just as well!

Cheers

fj

opinions4u

Some people use and pay for an IFA, listen, learn and then later go DIY.

The IFA educated them.

The world is good Agenda Man.

Ark_Welder

Yawn......

dunstonh

Yet, no IFA is experiencing anything of the sort and many are turning business away and/or have never been busier.

I suspect most of the people they asked in this tiny survey have never used an IFA. Still, things like this keep the trolls happy. Good job really as they have little else to do in the sad lives.

Richie(UK)

Hi Freddie,

Doesn't it really boil down to the extent of the individual's DIY skills? For things that I'm comfortable with I'm happy to DIY but for others I'd rather pay somebody else that is better able to do it for me.

I wouldn't, for example, undertake car repairs because I haven't the slightest clue about that sort of thing and would probably end up ruining my car - or worse, ruining my wife's car! Therefore, I pay a motor mechanic to do it for me.

Some people don't feel happy to DIY with their financial affairs. Therefore, they choose to have somebody advise them. Seems sensible to me.

Archi_Bald

bigfreddiel wrote: »

It's been reported that 30%+ of investors that have used an IFA in the last fove years are dumping them and going for the diy approach.

Reported by whom? When? Who has been surveyed? What reason have the surveyed given for the dumping? URL(s) with details will be much appreciated.

bigfreddiel

Archi_Bald wrote: »

Reported by whom? When? Who has been surveyed? What reason have the surveyed given for the dumping? URL(s) with details will be much appreciated.

Thought i was just making it up then?

Here it is:

"Now that consumers can see more clearly how much they pay for financial advice, many no longer want it.
One in three investors who have taken financial advice in the past five years says they will never consider paying for the service again.
These findings – part of an authoritative survey into thousands of investors' intentions – emerge just six months after new rules were introduced requiring financial advisers to declare their charges explicitly to clients, rather than receiving payment in the form of commissions....."

http://www.telegraph.co.uk/finance/personalfinance/consumertips/10233801/Investors-shun-advice-as-costs-are-laid-bare.html


cheers

fj

bigfreddiel

Ark_Welder wrote: »

Yawn......

yep, it is that simple

cheers

fj

elantan

I'll be honest I would go to an IFA if it was worth my while but my pot is tiny and won't ever really mount to much so not worth an IFA's time, so I am slowly learning to DIY ... But I have no doubt I will make many rookie mistakes that I may not have made had I went with an IFA

Not all IFA's are great by any means ... But most certainly not all IFA's are bad ... We have some exceptionally fantastic ones on the various forums, if someone chooses not to use an IFA then that is their right, it's an individual choice, there is no perfect answer when it comes to finances except earn more than you spend ... But that's easier Said than done

bigfreddiel

Richie(UK) wrote: »

Hi Freddie,

I wouldn't, for example, undertake car repairs

thats because engineering is far more complex than finance

in engineering we're talking about facts

in investing we're talking about sentiment

and ifas can only offer help on the legal/taxation front,they haven't a clue as to the direction of any investment - any claims in that direction is just pie in the sky, so how can they recommend any particular fund/etf/equity?

risk i hear you say - thats just about as useful as a chocolate teapot and is a trick used to convince naive people to think the investments picked by an (I)FA is right for them - hard to realise this but its true.

cheers

fj

want_to_save

Oh well if its in the telegraph it must be true.

Since RDR there are even more stringent processes in place to IFas its worth doing a bit more research before you slam the entire profession