Affordable IFA advice

dunstonh

It always surprises me how many people are happy with an adviser sticking their hand in their savings and helping themselves.

Whilst advice is not required by all and there are times it is not really needed, it may also surprise you at how often people actually need advice and the solution under advice is so much better than the options they looked at without advice.

Freecall

I would look on the bright side and recognise that what you are now rich in is time.

With research and reading around you should be able to manage your limited funds without too much difficulty. Remember even if you achieve a bit less that the very best return, you will have to do worse than the ideal achievement less the fees you would otherwise have paid before you are out of pocket.

Then, before committing to anything, come back on here and check with the board members, you will find many helpful people.

You will even get input from Financial Advisors on here, they probably won’t tell you what you should do but they will usually comment in a useful way on what you are considering and head off any big mistakes.

Who knows, you might even enjoy it.

gadgetmind

doughnutmachine wrote: »

It always surprises me how many people are happy with an adviser sticking their hand in their savings and helping themselves.

Well, at least RDR now means that you get to know what you're being charged and that the IFA isn't steering you towards what gets them the most kick backs.

However, the opposite of "advice" must not be a plain "no advice" and has to be "learn enough that you don't need advice".

doughnutmachine

gadgetmind wrote: »

Well, at least RDR now means that you get to know what you're being charged and that the IFA isn't steering you towards what gets them the most kick backs.

However, the opposite of "advice" must not be a plain "no advice" and has to be "learn enough that you don't need advice".

tbh, I wouldn't be happy going to a profession that had a history of steering punters into the product that paid the most commission.

I can't think of any other profession that got a secret kickback by advising a client to buy a particular product.

to be frank, I honestly think that historically "no advice" was better than going to an IFA.

thornbird

This is only my advice based on my experience, but when I retired I was alked into speaking to a 'Consultant' at Barclays. I ended up losing a lot of my money because I was basically missold to and it was a high risk investment that I was given even though I said I could not afford to risk anything. With hindsight I wished I'd left it in my savings account.

I know there are good IFAs, (not in the banks). Find the wrong one and it is not good.

IronWolf

You shouldn't find it too hard to find an IFA that will deal with you on a fixed fee basis rather than a %. Then the amount you invest doesn't matter to them.

They may not offer an ongoing service, but if that is clear from the outset then they should be able to choose appropriate investments that you can manage yourself (or that take little maintenance)

dunstonh

tbh, I wouldn't be happy going to a profession that had a history of steering punters into the product that paid the most commission.

Depsite a number of reviews over the decades to check that, there has never been any widespread evidence found to support that view. Sure it is has happened in some cases but not at a level that supports your opinion.

I can't think of any other profession that got a secret kickback by advising a client to buy a particular product.

Every single retailer out there works that way. Builders, doctors as well.

to be frank, I honestly think that historically "no advice" was better than going to an IFA.

Thankfully, what you think doesnt match reality and whilst I have no interest in changing your mind, your views do not reflect reality.

This is only my advice based on my experience, but when I retired I was alked into speaking to a 'Consultant' at Barclays. I ended up losing a lot of my money because I was basically missold to and it was a high risk investment that I was given even though I said I could not afford to risk anything. With hindsight I wished I'd left it in my savings account.

Bank FAs were a big problem. They tarnished views significantly. They handled a minority of business in most areas but had the most complaints. it is important to not mix up business models. A small local firm reliant on reputation and word of mouth which runs with no sales targets etc is a very different outfit to a bank which is tied to a small range of companies, the rep has sales targets and a sales manager threatening them with the sack if they dont sell more.

doughnutmachine

dunstonh wrote: »

Depsite a number of reviews over the decades to check that, there has never been any widespread evidence found to support that view. Sure it is has happened in some cases but not at a level that supports your opinion.

Every single retailer out there works that way. Builders, doctors as well.

Historically, directly held shares/ property/ Investment Trusts never paid commission to IFAs. Strangely enough IFAs historically never advised their customers to buy these products. Is that not fairly overwhelming evidence that the IFAs steer customers towards products that pay commission?

In my profession, I'm expected to make decisions that are in the best interest of my client, not to advise them to buy products that pay me secret commission. imho, secret commission comes very close to being a bribe....

dunstonh

Historically, directly held shares/ property/ Investment Trusts never paid commission to IFAs. Strangely enough IFAs historically never advised their customers to buy these products.

Not strange at all. The vast majority of IFAs did not have the regulatory permissions to recommend them.

Is that not fairly overwhelming evidence that the IFAs steer customers towards products that pay commission?

No. Just a lack of knowledge on your part. IFAs still cannot recommend on shares.

In my profession, I'm expected to make decisions that are in the best interest of my client, not to advise them to buy products that pay me secret commission. imho, secret commission comes very close to being a bribe....

In my profession, you are required to know what you are talking about. You should try it with yours before accusing others of taking bribes

doughnutmachine

dunstonh wrote: »

In my profession, you are required to know what you are talking about. You should try it with yours before accusing others of taking bribes

*cough* surely you must admit that the secret commissions paid to one famous fund platform does raise a conflict of interest?

you have to ask if they were pushing funds because they were a good investment or because they paid the fund platform a juicy fee......