Experts admit they're clueless

TheTracker

jimjames wrote: »

Funny how you can twist an article about the BoE into another anti-IFA tirade yet again. I'm afraid you're the clueless one if you think an economist and an IFA are the same occupation.

Then again the cluelessness of IFAs picking active funds over passive ones is gathering steam with the regulator beginning to chip in.
http://www.advicereinvented.com/single-post/2016/12/16/My-take-on-why-advisers-still-advocate-active-funds
With the FCA finding that “actively managed investments do not outperform their benchmark after costs” (well, duh) the time will come where claims will come why IFAs think they can choose them. Unless they are replaced by robos first.

Archi_Bald

bowlhead99 wrote: »

IMHO the rise of populism and the castigating of experts and specialists as 'not knowing any more that the rest of us' is a negative thing for society ; it makes some people feel good about themselves because they feel that they are just as good as all the leaders in the specialist fields, so they do not aspire to actually improve their own understanding of the world.

It's more than that. They are now so knowledgeable that they know more than the experts whom they love to castigate. Which would make them some sort of ....... wait for it ......... experts? The fact that they can't apparently even see the irony in it speaks volumes

BananaRepublic

bigfreddiel wrote: »

BoE admits it's economic experts are totally clueless.

"The Bank of England’s chief economist has admitted his profession is in crisis having failed to foresee the 2008 financial crash and having misjudged the impact of the Brexit vote.
Andrew Haldane, said it was “a fair cop” referring to a series of forecasting errors before and after the financial crash which had brought the profession’s reputation into question."

But don't let this admission put you off taking professional advice. If you can afford it, don't have the time or inclination to plan your financial future you must e ply an IFA.

You should pay at least £300/hour for advice, any less just would not be worthwhile.

IFAs have a vast amount of knowledge on current rules regulations that will maximise your hard earned dosh.

Just leave it a good IFA to setup and manage your portfolio, and relax while your pot builds up and pays you a nice little income, hopefully tax free.

Hood luck everyone fj

I once employed an incompetent bathroom fitter. Well, that is undeniable proof that IFAs are incompetent. Isn't it? Of course it is.

Alternatively, you do not have a clue what an IFA does. If you think they are in anyway connected to economic forecasters, you are ill informed. Whereas a forecaster tries to predict, an IFA tries to invest money in such a way as to maximise gains for a given level of risk, knowing full well that she cannot predict the future. If an economic forecaster is like a rocket scientist, designing the latest engine for NASA, then the IFA is the chap who services your boiler. An IFA provides a service, which will be of value to some, not me, but that's my choice.

TheTracker

Funny thread.
Here is where the BoE did call IFAs clueless...
https://www.moneymarketing.co.uk/bank-of-england-chief-economist-ifas-have-no-clue-on-pensions/

bowlhead99

"To give a personal example, I consider myself moderately financially literate. Yet I confess to not being able to make the remotest sense of pensions. Conversations with countless experts and independent financial advisers have confirmed for me only one thing – that they have no clue either. "

A bit of self deprecating humour in an after dinner speech when talking about the need to make financial products easier to understand in a world where people are more likely to be on DC than DB pensions, is fine.

He was not literally saying that the BoE's view is that nobody including their chief economist understands what a pension is and that after interviewing more experts and independent advisers than one can count, there is not a single person who can competently explain how a pension works.

Basically he was smiling and trying to keep things lighthearted while communicating the serious message that these things can be complicated for some people and we all need to work together to improve financial education, create simple products and so on, while the BoE can do its part by sharing some of the reasoning behind its decision-making, and we all get an idea of what is happening and participate in understanding and improving the world together. Very nice.

Although the speech was not a real example of the BoE saying that IFAs did not understand things, there was a decent underlying point to what he said. I also liked the bit about the BoE sharing information about its thought processes and rationale for its actions.

By contrast, a week prior to that speech, Carney had been frank about the BoE's forecasts and perceived risk factors in relation to the forthcoming Brexit vote, and people like Freddie were livid because they didn't want the BoE to start sharing information and explaining how things worked in case it changed public opinion on the best course of action.

Some people have quite specific ideas on what is best for everyone else

bigfreddiel

BananaRepublic wrote: »

I once employed an incompetent bathroom fitter. Well, that is undeniable proof that IFAs are incompetent. Isn't it? Of course it is.

Alternatively, you do not have a clue what an IFA does. If you think they are in anyway connected to economic forecasters, you are ill informed. Whereas a forecaster tries to predict, an IFA tries to invest money in such a way as to maximise gains for a given level of risk, knowing full well that she cannot predict the future. If an economic forecaster is like a rocket scientist, designing the latest engine for NASA, then the IFA is the chap who services your boiler. An IFA provides a service, which will be of value to some, not me, but that's my choice.

I think you misread my post. I was extolling the virtues of employing an IFA, they are an absolutely essential factor in anyone's financial wellbeing if they are not confident in doing it themselves.

The returns of their advice will far outweigh the advice they sell you. And ongoing charges are another absolute essential. Things change and an IFA will ensure your funds match your ever changing circumstances.

As far as bathroom fitters go, just remember an IFA is extremely well qualified up to university degree standard so they know what they're doing, you would have to be extremely unlucky to get an incompetent IFA. If you do there are plenty of safeguards in place.

Cheers fj

TheTracker

bigfreddiel wrote: »

remember an IFA is extremely well qualified up to university degree standard

No, they can be far less educated. Per wikipedia "Up to the end of 2012 all financial advisers only required a qualification at Level 3 or above of the Qualifications and Credit Framework. From the end of 2012, financial advisers will need to be qualified at Level 4 or above. (This is about the same as completing the first year of a university degree.)"

bowlhead99

bigfreddiel wrote: »

I think you misread my post. I was...

Cheers fj

You have to hand it to this guy on MSE, "bigfreddiel", he certainly seems to know his stuff and his posts are never trolling or rammed with obvious sarcasm. An infallible legend, and a true expert of the bulletin board post.

le_loup

I thought we had an agreement?
Ego demands attention - don't give it.

coyrls

bigfreddiel wrote: »

BoE admits it's economic experts are totally clueless.

"The Bank of England’s chief economist has admitted his profession is in crisis having failed to foresee the 2008 financial crash and having misjudged the impact of the Brexit vote.
Andrew Haldane, said it was “a fair cop” referring to a series of forecasting errors before and after the financial crash which had brought the profession’s reputation into question."

But don't let this admission put you off taking professional advice. If you can afford it, don't have the time or inclination to plan your financial future you must e ply an IFA.

You should pay at least £300/hour for advice, any less just would not be worthwhile.

IFAs have a vast amount of knowledge on current rules regulations that will maximise your hard earned dosh.

Just leave it a good IFA to setup and manage your portfolio, and relax while your pot builds up and pays you a nice little income, hopefully tax free.

Hood luck everyone fj

But isn't the Bank of England's Chief Economist an expert? I'm surprised you've chosen to believe what you think he said.