Do you really need an IFA? This would seem to say No!

bigfreddiel

Do you really need an IFA who will tell you how to save for your future. All they do is confuse you with jargon, plans, possible outcomes, and of course a nice hefty fee with no actual guarantee or evidence their suggestions may actually work.

This person worked it all out for himsself on an index card and it took all of three minutes. What is this advice well here it is:

1. Max your pension or equivalent employee contribution .
2. Buy inexpensive, well-diversified funds such as Vanguard Tracker funds.
3. Never buy or sell an individual security. The person on the other side of the table knows more than you do about this stuff.
4. Save 20% of your money. (In "The Index Card," Pollack and Olen altered this to "10% t0 20%").
5. Pay your credit card balance in full every month.
6. Maximize tax-advantaged savings vehicles - ISAs.
7. Pay attention to fees. Avoid actively managed funds.
8. Make financial advisers commit to a fiduciary standard.
9. Promote social insurance programs to help people when things go wrong.

Seems sensible to me and you can read it in Pollack and Olen's book "The Index Card". Look it up in Amazon.

Cheers fj

jamesd

"This person" needs a better adviser. One not in the US would be nice.

Even though you've mentioned ISAs the fiduciary standards thing is a current hot button topic for advisers in the US, not the UK. Actively managed funds in the US outside tax wrappers have a higher tax tax level than passive, except in the cases where passives trade more, which does happen sometimes; there's no difference in taxation of the two in the UK. Similar for pensions, in the US there are caps that are low enough to matter more than they do in the UK so maxing contributions there is practical for more while it's not practical for most in the UK.

I'm anticipating making close to £10k a year by not paying off my cards in full each month.

[Deleted User]

Using an IFA suits some just fine as they have and never will have any interest in such issues so why not.

Cheers

pathtofreedom

If you have 0% credit cards why would you pay them off in full each month? When you could use the same amount in savings/ investments earning interest until the 0% deal runs out?

coyrls

If you don't have a financial advisor, how can you "8. Make financial advisers commit to a fiduciary standard"?

maximumgardener

its an old chestnut , this question and its a very individual call.
there does not appear to be "one size fits all" approach !

undoubtedly there is an entry level sum probably around £100 k above which it should be worthwhile
getting an IFA involved. below £100k any benefit gets more marginal , due effect of fees
but then a set of decent investments may be worth paying for & set you on the right road etc

my own view is decent IFA is worth weight in gold & saves money/makes more..... but many prefer to DIY so obviously nothing wrong with that approach either. Horses for courses!!

dunstonh

All they do is confuse you with jargon, plans, possible outcomes

It seems the person that generated that list is confused with their own jargon, plans and possible outcomes and would benefit from an adviser!

saver861

jamesd wrote: »

I'm anticipating making close to £10k a year by not paying off my cards in full each month.

£10k a year on 0% is good. How does that work?

RuleTheWorld

I often use 0% credit cards to finance cars.

Need to know what you are doing though.

mania112

How many more of these threads do we need before we can report this chap for spam?

Besides the content from the OP, this entire forum is designed for people to come for guidance on financial matters, so discrediting advisers also discredits the very purpose of this forum.

jamesd

saver861 wrote: »

£10k a year on 0% is good. How does that work?

Not all at 0% all the time, but the rates work and most is at 0% plus its fees periodically, perhaps 3% average annual cost.

The income is mostly from P2P investments up to the total amount I have on cards. Average yield is over 15%.

I effectively eliminate the income tax from that and other income by buying VCTs.