Aviva/Norwich Union Section 32 Buyout policy holders?

dunstonh

I'm always intrigued as to why IFA's never ever reveal their charges on their websites etc

1 - because most dont have websites
2 - How do you price jobs that are always different with a single price? You can go some of the way with a menu of pricing but some jobs are longer than others and you have to have some account of that. You find out what is needed and offer your quote.

Or those that have used an IFA, but were to proud or embarrassed by the fee to say otherwise and felt ripped off afterwards and didn't want the hassle of going through the rigmorale of complaining that they had been?

There is no price regulation. Fees are always agreed in advance of the work being carried out. Just like most other professions.

I'm sorry dunstonh, but your two hoots kind of attitude is probably WHY millions of hard working people like me don't trust IFA's....

But millions do and you just have to accept you can't please everyone all of the time. Plus, some people don't want to be pleased.

towag

dunstonh wrote: »

1 - because most dont have websites
2 - How do you price jobs that are always different with a single price? You can go some of the way with a menu of pricing but some jobs are longer than others and you have to have some account of that. You find out what is needed and offer your quote.



There is no price regulation. Fees are always agreed in advance of the work being carried out. Just like most other professions.



But millions do and you just have to accept you can't please everyone all of the time. Plus, some people don't want to be pleased.

Don't have websites? No regulation? No hourly rate? No estimate? ...... No nothing? Likely expensive, but just have to accept it?..... Please?
No wonder.....
My bet was spot on....

dunstonh

Don't have websites? No regulation? No hourly rate? No estimate? ...... No nothing? Likely expensive, but just have to accept it?..... Please?

Does your local butcher have a website? You do realise more companies dont than do.

As you like research, you would know that most consumers do not like hourly rates. it is the least popular option of all the various methods.

Estimates can be given once the job is known. Until the job is known, how do you price it?

towag

dunstonh wrote: »

Does your local butcher have a website? You do realise more companies dont than do.

As you like research, you would know that most consumers do not like hourly rates. it is the least popular option of all the various methods.

Estimates can be given once the job is known. Until the job is known, how do you price it?

I would think the majority trend these days are that most businesses have a website for convenience and comparison...
Just give an example of say a simple draw down or annuity quote or a mixture of both to give an idea.... That at least would give most here something to go on....

http://www.barlowsbutcherswinchester.co.uk/

http://www.moneysavingexpert.com/savings/best-financial-advisers

You tell me....?

dunstonh

I would think the majority trend these days are that most businesses have a website for convenience and comparison...

I dont see any prices on that butchers site.

saver861

dunstonh wrote: »

But millions do and you just have to accept you can't please everyone all of the time. Plus, some people don't want to be pleased.

Part of the problem is that people do not like paying for anything that is not tangible. Paying for advice is not like paying for the plumber to fix the toilet!

Many years ago when I was less interested in financial matters I was given advice by an IFA for mortgage repayment products. That advice turned out to be very good as the investments have done very well over the years.

Now that I am more knowledgable on financial matters, I would be more loathe to pay an IFA. Problem is, equally I'm not sure I have sufficient knowledge to make significant decisions.

My wife on the other hand would definitely need an IFA as she has no interest in matters financial. Equally though, she would have no idea if she was being ripped off by an IFA either.

towag

dunstonh wrote: »

I dont see any prices on that butchers site.

No, but a joint of meat or a pack of rashers is hardly the same as paying for an IFA....

Not even an example of how much a simple annuity or draw down arrangement would cost?....

Why the secrecy?.......

Blood from a stone it seems....

towag

saver861 wrote: »

Part of the problem is that people do not like paying for anything that is not tangible. Paying for advice is not like paying for the plumber to fix the toilet!

Many years ago when I was less interested in financial matters I was given advice by an IFA for mortgage repayment products. That advice turned out to be very good as the investments have done very well over the years.

Now that I am more knowledgable on financial matters, I would be more loathe to pay an IFA. Problem is, equally I'm not sure I have sufficient knowledge to make significant decisions.

My wife on the other hand would definitely need an IFA as she has no interest in matters financial. Equally though, she would have no idea if she was being ripped off by an IFA either.

Don't you think that some idea of what the costs would be before they come through the door in making that decision to "employ" one would make the average consumer generally more aware and IFA's more acceptable at face value?

"Now you would be more loathe" it would indicate to me that advice was expensive?....
"Equally though, she would have no idea if she was being ripped off by an IFA either"....

Exactly!!.....

I think it all comes down to transparency and being upfront about charges.... Examples could be given, I'm sure....

bigadaj

I have been critical of ifas but I think a lot of the comments come from ignorance.

Hourly rates are high but there's nothing stopping more competition, the figures show the number of advisers is reducing. A figure of £150-£200 an hour is often quoted which does seem high to me, as most of my working life has been in engineering consultancy and as someone more highly qualified than an ifa my charge our rate wouldn't be much over £100 an hour. The nature of the work is different and the risk for an ifa in both smaller transactions and dealing with the public is higher than the projects and companies I work with. An ex colleague of mine once justified fees to a client by claiming that the average PI cost per project was £1000, so he'd do the work for £500 excluding this or £1500 with an they went for the latter.

In any form of contract parties have to be in some form of agreement, if you don't agree then just go elsewhere.

The comment that saver 861 makes of knowing about finance somewhat but beingloathe to pay an ifa even though they worry about making a decision is fairly ridiculous, either diy of pay someone, there's no point whinging.

Much of the root cause of the issues is that the average person has a bizarre respect for someone who deals with money. There's little complicated about it, if there is then it's probably well beyond the risk tolerance of the majority of the population. Banks have been hammered for misselling recently but most of this was Mis bought, you should be on your guard when walking into a bank as much as you would when walking into a second hand car dealership.

saver861

towag wrote: »

I think it all comes down to transparency and being upfront about charges.... Examples could be given, I'm sure....

No, I understand why they don't put charges up front - every financial situation is different and it would be nigh impossible. If they put a fee up front then that is what is stuck in the customers mind and if the work is over and above that and fees are higher, then the customer is disappointed.

A builder will do an estimate - they say rough guide of £1k per square metre but actually so much depends on other factors that such rough guides can be considerably out.

bigadaj wrote: »

The comment that saver 861 makes of knowing about finance somewhat but beingloathe to pay an ifa even though they worry about making a decision is fairly ridiculous, either diy of pay someone, there's no point whinging.

You miss my point. I think there essentially three types of people - 1) such as my wife who would not be able to diy at all, 2) those who are very up to date and savvy with all matters financial and 3) those like myself who are above average in general understanding but might not be aware of all the pitfalls. I think the third group has the more difficult decision as to whether to employ an IFA or not.

So someone with say a £200k portfolio could get burned if they don't know enough. They still could if they are very proficient in financial matters but its more likely they will be aware of the risk.

Those that have no clue are entirely in the hands of the IFA.