Do I have to pay an IFA pension yearly ongoing fee?

dmelife

It was in response to an OP who had clearly shown themselves to be not worth the hassle and the FA was politely telling them to go away.

TBC15

To be blunt yes you need someone to hold your hand.

If you haven’t run what if scenarios in trustnet or other freely available resources on line and decided “ I could fulfill my goals without help” you need help.

Think of your advisers fee as a I couldn’t be arsed tax.

Wildsound

Don't forget, if the IFA is "taking a cut" of your investments, it's in their interest as much as yours to make sure the investments are going to grow in the best way and most suitable to your risk profile. This is all assuming they're doing their job properly and providing suitable advice.

short_butt_sweet

HappyHarry wrote: »

You're confusing fees with adviser take home pay. Do you think that when you spend £100 in a supermarket, that all that money is paid to your cashier? Of course not. Similarly, your adviser isn't being paid £800 per hour either.

true. however, if we follow through the fund supermarket metaphor, then an IFA is not so much in the role of a cashier, but more of a personal shopper.

DrSyn

1. You have the book but have you seen the video?

http://www.kroijer.com/


2. Have you ever asked your IFA:-

(a) if you could just pay them a fixed fee instead?

(b) just what work they do to justify their fee? Perhaps there is more work involved then meets your eye. Then you would be better able to judge if you are getting value for money.

After all there is more involved in winning a boxing fight, then going into the ring and hitting the other guy.

Alexland

OldMusicGuy wrote: »

Indeed, that's why I prefer not to pay IFA fees. But if dunstonh approached me and said that our excess fees are only payable when our bespoke portfolio outperforms a reference fund, then I'd be more open to considering it.

How about zero platform and fund fees unless the investment outperforms a global index with fee refunds if they fail? Orbis have been offering this for a few years. However for the past 6 months they have been giving me money as they have failed to outperform the index.

Alex

Aegis

Alexland wrote: »

How about zero platform and fund fees unless the investment outperforms a global index with fee refunds if they fail? Orbis have been offering this for a few years. However for the past 6 months they have been giving me money as they have failed to outperform the index.

Alex

I can state right now with absolute certainty that I will never offer such a fee model. No-one can guarantee outperformance of trackers, that's part of the uncertainty of investments. As such, if I offered that fee and went through a protracted period where trackers did exceptionally well, I'd likely be out of business!

Alexland

This is where I, as someone who doesn't feel they would benefit from the personalised advice element, struggle to justify IFA charges for my situation.

If the bespoke portfolio slightly underperforms the IFA will remind you they should not be judged on performance but suitability. However if they slightly outperform they take all the credit. And all the way along you are certain to pay higher overall fees.

Alex