IFA Commission

mumf

fred246 wrote: »

I am not against IFAs. I am against rip offs.

If this industry were not so complicated,rip offs would not be an issue.It was supposed to have been sorted after Maxwell in the mid 80's,but still it is like the Wild West!

dunstonh

mumf wrote: »

If this industry were not so complicated,rip offs would not be an issue.It was supposed to have been sorted after Maxwell in the mid 80's,but still it is like the Wild West!

Maxwell had nothing to do with the retail pensions market.

LHW99

My Dad is about to retire and has been to an IFA over options with his 10 separate pensions. The IFA has recommended my Dad "re-invest" his pension pot with a medium-level risk. From what info I can gather, it seems this will be in the form of a drawdown pension

OP you don't mention your mum. If there is any residue in DC / invested pension pots it can be inherited by a spouse or other nominee. If he bought an annuity, it would not necessarily include a spouse's pension. That would need to be chosen at the point of set up and would mean a lower starting income (than for a single life annuity)

mumf

dunstonh wrote: »

Maxwell had nothing to do with the retail pensions market.

Did that touch a nerve?

The pension industry should offer clear and easily understandable products.A bit like the Clear English Campaign with forms from tptb.

I see comments here that say that folks should have a better understanding of the industry.That is like saying you should be able to mend your own car if you are not a mechanic,or take out your own appendix if you are not a surgeon.

Mind you,if we understood pensions en masse,then there would be no need for IFAs perhaps?

dunstonh

Did that touch a nerve?

I don't see why you not knowing what you are talking about would touch a nerve.

fred246

I was looking at wills recently. I have never done one before so I would just need a helping hand to fill the forms in. According to the money advice service the cost is £144 to £240. Transferring a pension is the same. You just need a bit of help filling in the form if you haven't done it before. You then just have to choose the investments. It's just which model portfolio suits the customer. I reckon should be max £500 for initial investment. Max £200 per year to check the portfolio is suitable. IFAs favourite customer would be a footballer. I think they try to copy them. "If a footballer gets £80k a week for kicking a ball around I can charge £12K for filling a form out and £2K for looking at a portfolio". Dunston is always saying "but there is liability insurance to pay" and then he says "nobody complains about IFAs". If no-one complains there will be no payouts and if IFAs do their job properly there will be no payouts.

shinytop

mumf wrote: »

Did that touch a nerve?

The pension industry should offer clear and easily understandable products.A bit like the Clear English Campaign with forms from tptb.

I see comments here that say that folks should have a better understanding of the industry.That is like saying you should be able to mend your own car if you are not a mechanic,or take out your own appendix if you are not a surgeon.

Mind you,if we understood pensions en masse,then there would be no need for IFAs perhaps?

I think it's more like saying if you drive a car then as a minimum you should have some understanding of how it works and be able to do some very basic things like check the oil and tyres. Or that everyone should have an understanding of how their body works and take some responsibility for looking after it rather than waiting until it goes wrong and running to the doctor.

Pension basics is not that hard to understand but some people will always need/want IFAs. I understand really well how my car works but I still take it to a garage to be serviced/fixed.

dunstonh

I was looking at wills recently. I have never done one before so I would just need a helping hand to fill the forms in. According to the money advice service the cost is £144 to £240. Transferring a pension is the same. You just need a bit of help filling in the form if you haven't done it before

Not even close to being comparable.

A service helping filling in forms means no advice given and no liability for advice and virtually no costs incurred in just filling in forms.

If you want to transfer a pension and just need help filling forms then that is fine. That would be cheap as well. Many IFAs will charge £100-£250 for such a thing.

Advice however is a whole different kettle of fish.

It's just which model portfolio suits the customer. I reckon should be max £500 for initial investment. Max £200 per year to check the portfolio is suitable.

You wouldn't be in business very long. You would go bankrupt as you fail to consider the costs.