IFA Ethics question

fred246

I've had lots of negative incidents with IFAs. I'm just a great observer of human nature and unfortunately in IFAs I've seen a group who only ever look after themselves even if it's massively detrimental to their customers. One day I might meet a good one.

DT2001

fred246 wrote: »

You're probably not rich enough. They only target rich people. That is the whole point of the thread.

If you were correct and IFA’s only target the rich, provide poor service and overcharge, we (the majority) are lucky!

fred246

DT2001 wrote: »

If you were correct and IFA’s only target the rich, provide poor service and overcharge, we (the majority) are lucky!

Pensions should always be invested in good long term investments. Assuming the OPs pension is invested well then the removal of the IFA's fingers from his pot might be the best thing that could happen to it. However the customer care is abysmal. It's always struck me as being a bit wrong that IFAs charge thousands to invest a pension and then 12 months later want hundreds (is hundreds enough, maybe thousands) to 'service' it. Should you be changing long term investments after 12 months poor performance? You can argue anything of course. The fund manager has left. Global conditions have changed etc etc etc.

DT2001

Fred246 seems to imply all IFA’s provide poor customer care. As another poster has pointed out they are no different to other service providers, some very good some not. You need ongoing reviews of long term investments because the market changes as can the requirements of the investor.
I service my car annually whether it is newish, older or has ‘performed’ badly by breaking down during the year.
Remember IFA’s make more if our investments perform well so their interest’s coincide with ours.

lisyloo

fred246 wrote: »

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

My ifa manages my portfolio and sends me recommendations every quarter (or ad-hoc if something important is happpening).
They look at asset allocation, global situation and many other factors and recommend fund switches when appropriate.

I pay 0.5% which I don’t find expensive at all and very good value for their expertise. They only have to do 0.5% better than I would to justify that and I think that’s likely given I don’t have investing skills.

Out of interest how many hours a year do you think you spend managing your portfolio? (this assumes you already have spent the time gaining the skills).
Just curious as my fees equate to 2 hours per week of my time.

They also advise me on anything I want as part of the package for free (up to a point).

What happens if you are on holiday or ill and unable manage your portfolio?

shinytop

There is really no point in discussing the merits of IFAs with Fred246 (even though I haven't followed my own advice). He does the same thing with garages/car servicing. He's a troll.

fred246

I am just a very intelligent independent person who has learned that looking after your own affairs works best.

Malthusian

shinytop wrote: »

He does the same thing with garages/car servicing.

Criticises them for only servicing people who have cars?

lisyloo

fred246 wrote: »

I am just a very intelligent independent person who has learned that looking after your own affairs works best.

I’m intelligent too but not everyone wants to do their own chores especially when expertise, tools, qualifications are required.
Personally I’ve had a lot going on with family issues but simply not wanting to do certain jobs and spend your time as you wish is a valid justification.

You come across as both quite bitter and unhelpful and I note didn’t answer my questions. You do need educating but it’s impossible if you refuse to engage/listen.

Good advice to ignore and let drop.

Malthusian

fred246 wrote: »

He charged them 10% of their lump sum and invested their money. My dad's was 100% invested in a UK income fund. I was only a teenager but I remember thinking "wow, they have spent 40 years earning their lump sum and he has earned the same in one lecture." After all the cheques had been cashed and the paperwork finished he sent them a letter telling them that he had taken early retirement and they should find a new adviser.

That's the most pathetic reason for a vendetta I've ever heard.

If you told us that a boy at school pushed you out of the lunch queue once and then went on to become an IFA, people would empathise more with your mental self-harming.

They never bothered about his charges but they couldn't cope with his complete dishonesty.

Actually I can guarantee you that all of them moved on with their lives and never gave it a second thought. The reason I can make a bold statement about what "all of them" did is that only a tiny minority of people would obsess over such a trivial incident, and you (and probably your father) are it. You're the only one who "can't cope" with the fact that some people were overcharged for pension advice in the 1980s. Whether you think the rest of your father's colleagues should be obsessing over it as well so you can normalise your delusion has no effect on their own thought patterns.