Investing

Flynn_2

dunstonh wrote: »

Not if you go on fee basis or CAR (customer agreed remuneration). These are independent of product/provider/tax wrapper so no bias can exist.

The word I used Dunston was most. But even if there is no upfront fee for selling a product but trailing commission there could certainly be bias. To say "no bias can exist" is surely nonsense. In the unlikely event that there's no trail commission even the prospect of losing a fixed fee could induce bias against telling someone to go away and put the money under the mattress or try buy to let.

Really? Not in my experience. Tied agents certainly had an influx from various sales professions years ago but whilst no doubt some did move on through to IFA, the numbers are not going to be significant.

Every IFA I seem able to ask has had a sales background rather than a strictly financial one. Is your full CV available?

Have you seen a poor IFA recently?

Yes two. One I've known since school, an employed IFA, is just about comfortable but hardly an inspiration to anyone. The other, self-employed, managed to lose his house a few years ago and now lives in a rented flat. It rather depends on what you call poor.

No they wouldnt. Unit Trust is just a tax wrapper. Its not one fixed level of investment that matched the FTSE. There are 2000 unit trust funds and a good number have no stockmarket exposure at all, whilst others focus on the various sectors which may be lower risk or higher risk. You would expect to see most decent cautious spreads coming close to doubling in that period.

I hope your comprehension skills are better when you are charging for your advice Dunston. The word I used was could. Do I need to explain?

No offence Flynn, but your post came off as a slagging off of IFAs and of little benefit to the OP.

And no offence taken Dunston.

People need to be aware that people flogging financial services or products are rarely doing so because they like your eyes. Reading your posts, your line seems to be that most IFAs are incompetent or over-charging with the exception being those just like yourself. Hmm. As Mandy Rice Davis said...

dunstonh

Every IFA I seem able to ask has had a sales background rather than a strictly financial one. Is your full CV available?

Technically, I suppose I do have a sales background as do most IFAs as most of us at some point have worked for a tied salesforce such as a bank or insurance company. That by definition is sales oriented. It is very hard to go straight to IFA. However, I have no other external sales experience.

I know an IFA that used to be a double glazing salesman for about a year but he was a nurse before that. Neither has any impact on his ability to give good advice.

Yes two. One I've known since school, an employed IFA, is just about comfortable but hardly an inspiration to anyone. The other, self-employed, managed to lose his house a few years ago and now lives in a rented flat. It rather depends on what you call poor.

You seem to know a lot of IFAs. Most people have never met one. However, a large number know tied agents, multi-tied or whole of market advisers. Employed IFAs or saleforce IFAs do tend to be at the lower end of the earnings scale. The owner/partner/director IFAs are less likely to be in that position.

I hope your comprehension skills are better when you are charging for your advice Dunston. The word I used was could. Do I need to explain?

I could have been an astranaut. Anyone could have been had they been born in the right place and made the right decisions. Could means anything and your comment focused on the tax wrapper and not the investments within it. Tax wrappers dont make or lose money yet your explanation focused on the tax wrapper.

People need to be aware that people flogging financial services or products are rarely doing so because they like your eyes.

And how does that differ from any other occupation?

Reading your posts, your line seems to be that most IFAs are incompetent or over-charging with the exception being those just like yourself. Hmm. As Mandy Rice Davis said...

I have never said that. The stats show that IFAs account for 18% of complaints and that over 80% of current advisers have never had a complaint.

Websites, like this one, do tend to highlight the poor examples on everything as people rarely post about the positives. I do think that a good number of advisers could do better in their presentation and adding value to their servicing.

Also, the charging structure operated by NMAs is the very model that the FSA have proposed as the top level adviser under their RDR proposals. So, I make no apology for thinking that customer agreed remuneration is a much better approach to advice. The fact that NMA numbers are increasing all the time and that within 3-5 years, to call yourself an IFA, you will have to work on that basis suggests that those doing it now are ahead of the game.

Flynn_2

dunstonh wrote: »

Technically, I suppose I do have a sales background as do most IFAs as most of us at some point have worked for a tied salesforce such as a bank or insurance company.

Not sure what "technically" means. Are you saying you left school/unversity to become an insurance salesman?

Salesmen I know tell me the product doesn't matter. If you can sell, you can sell anything: financial products, windows, cars, estate agency or kitchens are all the same

I find it a bit worrying that IFAs so often portray themselves as "professionals" rather than as salesmen when the actual financial qualifications required are so basic. According to the IFA Promotion site IFA level A qualifications "are equivalent to A level standard" and that seems to be pushing it. Having someone with only the equivalent of a school qualification advising me on investing large sums wouldn't be too reassuring.

Jake'sGran

I like EdInvestor's response and was going to say that the advice given by many of the advisers in newspaper financial columns I read is to have a fair proportion in cash.

I dipped my toes into equities in the late 70's not really undrstanding anything about the stock market but by pure luck my first £1000 went into the now famous Fidelity Special sits Fund. It has been less exciting of late but I did very well with it. A lot of people buy shares direct just for the yield. I'm thinking of companies like Lloyds TSB, Woolworths, United Utilities and others.

You must use your full ISA allowance each year. Chase the best rates for your cash ISA and don't be too lazy to move if it stops being competitive next year. Like many others I use Hargreaves Lansdown to buy funds as they discount the initial fee, mostly all of it, and also give back a small amont of the annual fee. In the last few years I have bought Invesco Perpetual Income or High Income. There is also a Monthly Income one. The manager is very highly regarded.

If you do a bit of research on the various sites that give statistical information (Bestinvest, iii, etc etc) about the various funds you will start to understand it more.
I have made a couple of bad moves but recouped the losses easily and my portfolio now looks impressive except that everything has dropped recently which of course means a buying opportunity. I am not selling anything.

debbie42

If you don't have the expertise or time then it would make sense to see an IFA who specialises in investments.

Of course they make their money from advising you: they aren't charities.
Some, like Dunston, do give very useful (and free!) advice on this forum as to what to look for in an IFA. If you do a search on this forum then you should come up with some useful threads.

Being the nature of a public forum, you will have to decide what is good advice and what isn't.

dunstonh

Not sure what "technically" means. Are you saying you left school/unversity to become an insurance salesman?

Im not an insurance salesman and never have been so no.

Technically was used because if you work for a tied salesforce, the environment is sales. Many IFAs left that environment behind to get away from it. Not to continue it

I find it a bit worrying that IFAs so often portray themselves as "professionals" rather than as salesmen when the actual financial qualifications required are so basic. According to the IFA Promotion site IFA level A qualifications "are equivalent to A level standard" and that seems to be pushing it. Having someone with only the equivalent of a school qualification advising me on investing large sums wouldn't be too reassuring.

Something that is being addressed with IFA requirements being increased in the coming years and a move to chartered status being on the cards.

However, you seem all too willing to put IFAs into a single category and treat them with disrespect just because of the actions of a minority. The industry has a large number of professionals who are highly qualified and it has some with just the standard FPC level. I know some at the standard level who are highly technical but have never sat the optional exams and I know some who are next to useless.

If you are worried about being sold to then avoid salesforces and agree the remuneration in advance.

Marhaba_Man

So to summarise my options where would u put the money ? Im happy to tie say 50000 up for 5 years the rest perhaps not quite so long

EdInvestor

Marhaba_Man wrote: »

So to summarise my options where would u put the money ? Im happy to tie say 50000 up for 5 years the rest perhaps not quite so long

See post no 11 for my suggestions.

dunstonh

Marhaba_Man wrote: »

So to summarise my options where would u put the money ? Im happy to tie say 50000 up for 5 years the rest perhaps not quite so long

We dont know enough about your situation to say.

djbd1973

Marhaba_Man wrote: »

So to summarise my options where would u put the money ? Im happy to tie say 50000 up for 5 years the rest perhaps not quite so long

I think that from the suggestions made, you will have to either take advice from directly from a professional through an agreed meeting or follow up the suggestions with some research to make your own choice.

You have to remember the disclaimers where no advice can be given on this site, and the options suggested are just that - 'suggestions' that need more information to give clarity.