How do I find an IFA?

Ames

Hi all,

In the next couple of weeks I'm going to get a large inheritance. I need to find an IFA who can set it up so that I'm just drip fed a monthly allowance so that I don't spend it all (I have bipolar disorder and my spending has been getting out of control lately).

Does anyone have any tips on how to find a good, reputable advisor?

Thanks in advance,

jem16

Ames wrote: »

Hi all,

In the next couple of weeks I'm going to get a large inheritance. I need to find an IFA who can set it up so that I'm just drip fed a monthly allowance so that I don't spend it all (I have bipolar disorder and my spending has been getting out of control lately).

Does anyone have any tips on how to find a good, reputable advisor?

Thanks in advance,

Unless you have a personal recommendation from family or friends, the best way is to use https://www.unbiased.co.uk.

Rollinghome

Unbiassed.co.uk is a marketing company for IFAs which will give you contact details for those in your area but of course it won't tell you if they're any better or worse than any other. There are several other sites that provide contact details for IFAs and which in most cases get a kick-back for the sales lead.

It's also a bit hit and miss to rely on recommendations from friends as many people won't be aware of whether the advice they've had is particularly good or not and are unlikely to be sufficiently knowledgeable to compare. If they were very knowledgeable they probably wouldn't need to use an adviser in the first place. Similarly, where people are critical it may be for the wrong reasons. Many won't even have much idea of how the charges they're paying compare.

So finding a good adviser is likely to be down to you doing some research. Don't just see one before you choose. If you've a substantial amount to invest then see several and compare what they have to offer and what they charge. If you don't understand anything then ask them to explain properly until you do. That's part of their job. After seeing the third one you'll be a lot more savvy about what you should be asking. Consider getting a book such as one of the Which? or FT guides. You're likely to be paying them thousands of pounds for their services over the years so take your time.

Make sure they understand the difficulties bi-polar people can have with managing their finances and that the solutions they suggest make sense to you. If you know someone you can trust who knows a bit more than you then consider taking them along to the first meeting - which should be free. Good luck.

Ames

Thanks guys. I've designated Friday as 'contact IFA's' day. Although with only 16 days to get it all sorted in I'm guessing my choice is going to be pretty limited.

I don't know anyone who can recommend someone, or anyone to take to meetings with me.

jem16

Ames wrote: »

Thanks guys. I've designated Friday as 'contact IFA's' day. Although with only 16 days to get it all sorted in I'm guessing my choice is going to be pretty limited.

If the inheritance is quite large, try not to rush into things and take your time. Why only 16 days to get it sorted? Assuming that is when you get the inheritance can you put it into a savings account (or more than one if it's more than £85k) whilst you get things sorted?

Ames

Currently I'm on means tested benefits. When I get the money they'll stop and I wont be able to claim again until I've spent the inheritance (about £54k) at benefits rates. Essentially I'll have a date that it has to last until.

I have bipolar disorder and my spending has been very erratic lately. There's a high chance that I'll waste the inheritance. There's been a lot of times lately that I've seen something and thought 'I can afford that soon'. Sometimes it's sensible - an £80 sofa in a charity shop to replace mine that's falling apart. Often it's not - a hot tub when I don't even have a garden to put it in.

So I need to make sure that I never have access to the money. It has to be tied up and dripped to me at the same rate as benefits.

Your_Hero

Ames wrote: »

Currently I'm on means tested benefits. When I get the money they'll stop and I wont be able to claim again until I've spent the inheritance (about £54k) at benefits rates. Essentially I'll have a date that it has to last until.

I have bipolar disorder and my spending has been very erratic lately. There's a high chance that I'll waste the inheritance. There's been a lot of times lately that I've seen something and thought 'I can afford that soon'. Sometimes it's sensible - an £80 sofa in a charity shop to replace mine that's falling apart. Often it's not - a hot tub when I don't even have a garden to put it in.

So I need to make sure that I never have access to the money. It has to be tied up and dripped to me at the same rate as benefits.

I understand what you are saying, but I think you may find it difficult to find a financial adviser who will advise you, especially if you do not have anyone else (trusted friend, or family) with you in the meeting with you due to your medical condition. Although it may not always be the case, but it could be perceived that bipolar disorder could affect your ability to make financial decisions, and even in your own admission you tend to make rash buying decisions.

Many advisers may not take the case on owing to a very high chance of a potential complaint in the future as you may be classed as a 'vulnerable' customer.

jem16

Ames wrote: »

Currently I'm on means tested benefits. When I get the money they'll stop and I wont be able to claim again until I've spent the inheritance (about £54k) at benefits rates. Essentially I'll have a date that it has to last until.

Please don't take this the wrong way, but although you view the £54k inheritance as large, it is not large to an IFA and you may struggle to find one at a reasonable price. Also as Your Hero says, it's going to be difficult given your bipolar disorder.

How much is benefit rates exactly?

So I need to make sure that I never have access to the money. It has to be tied up and dripped to me at the same rate as benefits.

Is it possible for you to receive the inheritance wrapped up in some sort of trust where it could be overseen by someone who would be able to give you some of the money each week/month?

Ames

Your_Hero wrote: »

I understand what you are saying, but I think you may find it difficult to find a financial adviser who will advise you, especially if you do not have anyone else (trusted friend, or family) with you in the meeting with you due to your medical condition. Although it may not always be the case, but it could be perceived that bipolar disorder could affect your ability to make financial decisions, and even in your own admission you tend to make rash buying decisions.

Many advisers may not take the case on owing to a very high chance of a potential complaint in the future as you may be classed as a 'vulnerable' customer.

It sounds like I'm in a Catch 22 position - I need someone to take over some of my financial affairs because I'm not capable of dealing with them myself, but because I'm not capable of dealing with them no-one will take them over...

jem16 wrote: »

Please don't take this the wrong way, but although you view the £54k inheritance as large, it is not large to an IFA and you may struggle to find one at a reasonable price. Also as Your Hero says, it's going to be difficult given your bipolar disorder.

I know it'll be expensive. I didn't realise that the bipolar would be a problem though.

How much is benefit rates exactly?

My income support, housing benefit and council tax benefit is about £700 per month. Then there's yearly costs like a prescription pre payment certificate, dental care, uni tuition fees. They add maybe another £2k per year.

Is it possible for you to receive the inheritance wrapped up in some sort of trust where it could be overseen by someone who would be able to give you some of the money each week/month?

I thought that was what an IFA would do? Or do I need a different type of specialist? Whoever sets it up will also have to administer it as there's no-one I can ask (when I had surgery recently I had to put my benefits advisor down as my next of kin because there was no-one else). I know that it will be expensive to pay someone, but that would be an 'allowable' expense from the point of view of the DWP and wouldn't come out of my monthly income. And would still be cheaper in the long run than me blowing the cash in a few weeks/months on stupid purchases.

Eco_Miser

Could you get help from a charity for people with bipolar disorder, or maybe Citizen's Advice?

Your_Hero

To be fair, I don't think you need an adviser to do that for you. Because of the way you are planning to exhaust it, and probably in a short time frame, an adviser may not be of any use. You can set up an account to "dripfeed" this income to you "at the same benefit rates" until it is exhausted (or below a certain capital amount) then you are back on the benefits again. At £54k, this will not take long to do.