Ifas?

Railway95

So I have a regulated IFA who is helping me with my pension and I'm finding them extremely useful but I don't know anyone else who uses an IFA.

What's your thoughts on using one for your pensions and investments?

Aegis

I'm in favour of it, but you can probably see from my signature that I'm not exactly impartial in this matter!

dunstonh

So I have a regulated IFA who is helping me with my pension and I'm finding them extremely useful but I don't know anyone else who uses an IFA.

IFAs do the majority of transactions but not the majority of people. FAs do more people but handle less transactions. IFAs tend to do the wealthy investors. FAs tend to do the bottom end (but like it when they get middle/upper). FAs should be avoided. If you need advice, you should use an IFA

What's your thoughts on using one for your pensions and investments?

If you want advice then it makes sense to use an IFA. If you want to DIY then it makes no sense to use an IFA.

OldMusicGuy

I have a large DC pot which has to support my wife and I through a (hopefully) 30 year plus retirement. I manage all my own investments to avoid paying fees to IFAs. It's not complicated provided you are prepared to do a bit of reading and can also clearly define your own investment objectives and risk profile.

I've used IFAs/FAs in the past and had mixed experiences. Some were good, one was very bad.

Dox

Depends if you need one - which isn't as stupid a comment as it sounds. If you have only the minimum amount to invest in a pension (or elsewhere), it's unlikely that any IFA would be worth the fees you would have to pay to get proper advice. Putting the money into the scheme/investing it, even in a low-performing fund, would still probably be a better bet.

On the other hand, if you have sufficient money available for investment/already invested to ensure it would be worth paying for advice, it can be worth its weight in gold (or bitcoin...).

LHW99

IMO using an IFA is likely to be a better idea the older you get.
Managing your own investments is fine while you have all your marbles (provided you enjoy it / are happy to put in the effort) but once decrepitude sets in, having a trustworthy adviser to take on the hard work is likely to be worth their fees (and more)

Albermarle

If you have less than £100K and are only looking for mainstream investment funds for your pension etc then it is better to DIY. It's not that complicated and the smaller the fund the more impact the fees will have.
As your funds get bigger and you go into the retirement phase , where investment and tax strategies can be more complicated, then it can become more worthwhile . Also as someone already mentioned as you get older still you might need more help as might a surviving spouse.

dunstonh

If you have less than £100K and are only looking for mainstream investment funds for your pension etc then it is better to DIY.

The problem is that DIY doesnt work for everyone. DIY well and you can save money. DIY badly and it can be a costly mistake. Two of the top 10 selling funds on HL are expensive cash cows that are more expensive than an advised solution. People using those may think they are doing well cutting out the IFA. However, in reality, they are paying for more than using an IFA.

HL MM Balanced at 1.45% (OCF ex Ante) plus platform charge of 0.45% is 1.90
So, on £100k, that is £1,900 a year on charges.
An IFA using a low-cost option on a transactional basis would be around £1k initial but 0.34% ongoing which is £340. So, year one would be £1,340 but year two £340 (ignoring growth).

DIY in the right hands is cost effective. But not everyone is upto it.

kidmugsy

Railway95 wrote: »

So I have a regulated IFA who is helping me with my pension and I'm finding them extremely useful but I don't know anyone else who uses an IFA.

I've never used one. But if you find your one extremely useful then it's probably money well spent.

I don't rule out using one in future if I decide I need help with, say, taxation matters. Or equity release. Or annuity purchase. I don't expect ever to pay anyone else to recommend how I allocate our capital. But you never know.

One fellow I did find helpful aeons ago was an insurance salesman! From Equitable Life! Oh, and I once strolled into a stockbroker's and got helpful advice that cost us next-to-nothing. Charles Stanley it was. I retain a soft spot for them.

P.S. Dunstonh might say that I received 'information' rather than 'advice'. Fair enough.

atush

I am in general in favor of IFAs, but use them rarely. And am interested in investing.