Ongoing IFA Charge & Fees

wjr4

Nobody bothers replying to you because you are anti-IFA & nothing we say will ever be right to you

cfw1994

wjr4 wrote: »

Nobody bothers replying to you because you are anti-IFA & nothing we say will ever be right to you

Sad but true: Fred, your innate hatred of all things IFA is OTT really, regardless of your personal experience (which IIRC was mostly based around your dad being ripped off about 20-30 years ago). The world moves on.

I am personally very sceptical of IFA help for us, but I can see how for many it will hold value.
Given the nature of this board, the majority of people (& certainly most of the regular posters!) will be pretty financially savvy, looking for checks or tweaks or the occasional suggestion....

......but the majority of the population are relatively clueless about financial advice, & can benefit from some one with a rounded perspective and technical knowledge. & thanks to those IFAs who do share their knowledge here, it is gratefully received by the vast majority!!

fred246

It really is a simple question I am asking. If your car is serviced and costs £2K and you ask for a breakdown they will say "well it's 10 hours of labour at £100/hour and the parts came to £1K". There are no parts to buy so a pension service is only labour. So is it 10 hours at £200/hour or 20 hours at £100/hour? It's a simple question. Many people seem to be paying these fees. Dunston is always saying 0.5% is normal. That's another question. Why charge in %. A car dealer doesn't charge a % of the value of your car to service it. On a money saving forum people should be making sure that they get value for money in things they pay for. IFAs should easily answer these questions. Why is it such a difficult question for them?

[Deleted User]

cfw1994 wrote: »

Sad but true: Fred, your innate hatred of all things IFA is OTT really, regardless of your personal experience (which IIRC was mostly based around your dad being ripped off about 20-30 years ago). The world moves on.

The world has been moving by introducing new regulations and more red tape which address one issue and create a bunch of new ones. The on-going fees are still “a rip-off” because the correct thing to do is design a simple investment system up front which can be easily managed by investors with zero ongoing IFA charges.

fred246

I am having my dental check up this week. Private dentist so no NHS involved. My dentist is much more highly skilled and educated than any IFA. He has all his practice staff to pay and all his equipment to pay for. His charge will be well under £100. How does it cost an IFA £2K to look at a pension that he has invested himself?

LHW99

fred246 wrote: »

It really is a simple question I am asking. If your car is serviced and costs £2K and you ask for a breakdown they will say "well it's 10 hours of labour at £100/hour and the parts came to £1K". There are no parts to buy so a pension service is only labour. So is it 10 hours at £200/hour or 20 hours at £100/hour? It's a simple question. Many people seem to be paying these fees. Dunston is always saying 0.5% is normal. That's another question. Why charge in %. A car dealer doesn't charge a % of the value of your car to service it. On a money saving forum people should be making sure that they get value for money in things they pay for. IFAs should easily answer these questions. Why is it such a difficult question for them?

I am having my dental check up this week. Private dentist so no NHS involved. My dentist is much more highly skilled and educated than any IFA. He has all his practice staff to pay and all his equipment to pay for. His charge will be well under £100. How does it cost an IFA £2K to look at a pension that he has invested himself?

1) You can ask for a review when you want it and pay by the hour - just find an IFA who will do that.
2) A pension service is not "only labour" it includes office expenses, insurance, software costs and probably more
3) Your dental checkup probably takes 10 to 15 mins. so the actual per hour cost is probably around £350 (or more).


I am not an IFA, I don't generally consult one as I enjoy DIY, but I do know the cost you charge in business doesn't represent just your labour costs.
0.5% across the board probably includes a degree of cross-subsidy from those with larger pots, to those with smaller ones, although it is likely that it is minimal.

fred246

If I ask my dentist how long a check up takes he will say 15 or 20 minutes. Ask an IFA how long it takes for a pension check up and they say "pass" or "I prefer not to answer that question", or "I exercise my right to remain silent".

atush

segovia wrote: »

I have to confess to being very much Anti-IFA, and bracketing them in the same category as double glazing and used car salesmen (no offense to any DG of Car Salesman on this forum). However, having looked at the self-managed SIPP options and reading all the books recommended on this forum, I decided I don't have the time to invest in a long learning curve.

i personally think you are misinformed.

True IFAs (not FAs as many confuse them with) are not like double glazing and used car salesmen, although FAs can be

fred246

LHW99 wrote: »

1) You can ask for a review when you want it and pay by the hour - just find an IFA who will do that

Surely you would want to know roughly how many hours it would take and how much per hour they would charge? All the IFAs seem to refuse to say how long it takes.

dmelife

Problem is Fred, it is pointless trying to explain anything to you. It’s like trying to justify Judaism to a Nazi.