It's not you, it's me: taking a break from an IFA?

[Deleted User]

I am not withdrawing, but nothing will change during drawdown up until I am 80 (if I get that far). At that point a significant chunk will go into an annuity to deal with the risks of longevity and senility.

I am a couch potato so my research was limited to finding the most efficient ETFs for my allocations. Most of my “research” was reviewing the theory and making some (thankfully small, like using an FA for minor amounts) mistakes early on and learning as much as possible about risks.

When you say “outside research” - is he a stock picker? Really? Or is he just using “research” on various funds?

beamyup

dmelife wrote: »

9 months?! F@‘k you Mordko. 11 exams over 5yrs and I’m still learning. You haven’t got a clue.

What exams/qualifications do you need to become a registered and fully fledged IFA?
I guess you need this at level 4:

https://www.cii.co.uk/learning/qualifications/diploma-in-regulated-financial-planning-qualification

and according to this

https://www.unbiased.co.uk/life/get-smart/financial-adviser-qualifications

The level is above A level and below a degree.

That's more like 9 months work (maybe less if already have a degree in a related subject) and less like 5 years work unless I am missing something?
What am I missing?

Parking_Trouble

beamyup wrote: »

I think you already know the answer to your question. Think of it from the IFA point of view, of course they are concerned that you may lose out because of Brexit, and they can jump in to help you.

Can you DIY do you think, save yourself the ££££ and immediately dump this IFA?

You say you have a "cautious approach" to investing meaning probably bonds right (low risk)? but you have this actively managed (which adds risks and charges) + you have the IFA to pay.

Well he hasn't changed anything since it was set up 16 months ago so I could ditch him and continue to leave it to manage itself!

Parking_Trouble

Linton wrote: »

The £2500 is effectively a retainer for him to keep you on his books, monitor what is happening, keep you informed, respond to any questions you may have, deal with any issues that arise, assign time to prepare for and hold an annual review etc etc. If you now believe you can manage entirely on your own then you may well decide to dispense with his services.


However if you should subsequently need help it is likely to be more expensive as he may need to start from scratch or you may find that he is unable or unwilling to take on the new business.

Yes I understand it's a retainer but he seems to be very passive.

We had to chase him to suggest an annual review which after 16 months hasn't happened. Seems to be waiting for the impact of Brexit which nobody seems able to predict.

In 16 months he has sent out one email during a correction in the market saying don't worry the fund managers deal with it.
Well that's surely the same for all events affecting the market then?

beamyup

Maybe he is taking a long holiday in the run up to brexit in anticipation of how busy he is going to be just after brexit.

You know what you need to do

Also If you want to share info on what funds you are invested in, i'm sure people here can point you towards cheaper / more sensible options.

[Deleted User]

dmelife wrote: »

9 months?! F@‘k you Mordko. 11 exams over 5yrs and I’m still learning. You haven’t got a clue.

I used to have to take 11 exams per year at uni; over a period of 6 years. Are you taking a 9 months course real slow with multiple choice “exams” a couple of times a year? https://www.libf.ac.uk/study/professional-qualifications/financial-advice/diploma-for-financial-advisers-dipfa

Note that the material is focused on sales; a qualified IFA needs to know exactly zero about security analysis, statistics and other key disciplines required for someone with a degree in finance.

No doubt there are IFAs who are far more educated than the minimum required but that minimum really is very low.

SonOf

Note that the material is focused on sales; a qualified IFA needs to know exactly zero about security analysis, statistics and other key disciplines required for someone with a degree in finance.

Which exam covers sales? I could not see it in the list.

dmelife

Mordko, 6 yrs......what happened? Did you have to re-sit your Geography degree?

beamyup

I am genuinely interested - my questions for you IFAs.

Did you take > 9 months of effort on the level 4? how much effort is it?
Were you already degree level qualified?
Is the level 4 enough? did you also take the level 6?
Are there other exams other than the annual "renewal"? What?
Did you train in statistics? to what level?
Did you train in finance? to what level?
Do you or your firm recommend high fee active funds that can beat the market?
Did you have any training in sales?
What do you think is your main "value add" to your clients?
What questions am I missing?

Linton

Parking_Trouble wrote: »

Yes I understand it's a retainer but he seems to be very passive.

We had to chase him to suggest an annual review which after 16 months hasn't happened. Seems to be waiting for the impact of Brexit which nobody seems able to predict.

In 16 months he has sent out one email during a correction in the market saying don't worry the fund managers deal with it.
Well that's surely the same for all events affecting the market then?

In the ideal world one should set up a portfolio designed to handle most circumstances and leave it. So you dont want an IFA who fiddles.


However I too would be unhappy at the absence of an annual review or annual report identifying changes and progress in the past year. Putting it off until BREXIT does not make sense to me. A day, a week or even a year after BREXIT the long term effects will still be unclear. In any case the portfolio should be sufficiently diversified so that whatever happens the effects would not be catastrophic, at least not to your savings. The statement that the fund managers will handle a correction seems wrong, unhelpful and really just a brush-off. Hopefully he should already have explained that there will be corrections but the portfolio is designed so that the effect is constrained in line with your views on risk.


So, yes, I would be considering looking elsewhere.