IFA Ethics question

HappyHarry

fred246 wrote: »

I have always wondered if you go for a job to train as an IFA and they ask you why you want to do it do you answer with a sort of idealistic "well since being a child I've always dreamed of searching out rich people with the hope of making them richer" or the more pragmatic "I just want to ask a few questions and fill in a few forms and make loads of money". Maybe our IFA friends could help us out with the answer.

Oh that's easy: I wanted to change peoples lives for the better.

After I spent a few years (pre-IFA) in a business to business environment, helping businesses prosper, I realised I wasn't getting any job satisfaction.

Now, I change peoples lives for the better. e.g.;

I help clients retire earlier than they ever thought they could on the incomes they want.

Many clients find large sums of money "daunting". I help these clients manage their funds and ensure that their money is ready and available for them to spend when needed. These clients can then stop worrying about "what happens if it all runs out".

I spend a great deal of my time persuading retired people to spend their money, instead of hanging to to it "just in case", and watching these clients enjoy retirement so much more.

I now get an immense level of job satisfation, as I suspect anyone who works in a profession that helps people directly does.

fred246

Good answer. I suppose you don't have to mention that you'll only help rich people.

Pension_Geek

fred246 wrote: »

Good answer. I suppose you don't have to mention that you'll only help rich people.

Given that you feel so strongly about all of this, why don't you do the exams required, set up as an IFA and then work for every client under the sun regardless of how much income they provide relative to the cost of keeping that client. I am sure you will gain lots of clients, but I doubt it would last long unless you have endless sums of money to pay for the ongoing costs or have a few very rich clients that can subsidise the rest.

fred246

Maybe an IFA can explain the costs of 'servicing' a pension. What do you actually have to pay for? I service my own pension. It doesn't seem like I have to pay anything.

justme111

I have better idea- why does not Fred do whatever he does in his line of work for free, ie providing service to people who can not or do not pay for it? :j
After all he minds that IFAs do not do that - how hypocritical that he is likely to be doing it himself.. Or have done it himself in the past if he is retired. I suppose it would not apply if he was on ESA - o wait , he could offer to do jobs for people for free - I am sure many local poor retired people would appreciate gardening.. Still would not be the same as his ESA would allow him to do that while an IFA does not get any benefits and has to earn their living ..

fred246

Well apparently £430 would be inadequate to 'service' a pension. However you 'service' a pension cannot involve more than reading a few pieces of paper and writing a small amount. Your fixed costs are fixed. Maybe I am just faster than average at reading and writing.

dunstonh

However you 'service' a pension cannot involve more than reading a few pieces of paper and writing a small amount.

You have repeatedly shown you have no knowledge on the subject. So, why are you writing things as if they are fact?

Your fixed costs are fixed.

State the bloody obvious.
Fixed costs may be fixed but the costs that are not fixed won't be fixed.

Maybe I am just faster than average at reading and writing.

But sadly not at understanding things.

justme111

fred246 wrote: »

Well apparently £430 would be inadequate to 'service' a pension. However you 'service' a pension cannot involve more than reading a few pieces of paper and writing a small amount. Your fixed costs are fixed. Maybe I am just faster than average at reading and writing.

You have objections to people quoting prices for their services as they find fit?

fred246

I obviously need educating on what 'servicing' a pension means and why it is so expensive.

HappyHarry

fred246 wrote: »

I obviously need educating on what 'servicing' a pension means and why it is so expensive.

Yes, I think you're right.

Rather than disparaging IFAs because of an incident your father had nearly 40 years ago, why not try reading through this thread, or many of the other threads you've posted on, where other posters have tried to educate you as to why it is so expensive.