How Old Should Your IFA Be?

Twointhebush

I'd like to think that my IFA would be still be working and advising me when I retire. If I find an IFA and I like them and they're doing a good job, it seems to be a good plan to stick with them. But it's quite possible that they wouldn't be, and maybe take early retirement, or whatever. Should I choose someone who is younger than me/near-ish to my age? What happens when an IFA retires (etc.)? Is it normal to change IFA several times over the years?

nigelbb

Surely it would be a very good sign if your IFA were to retire early? It shows that he can walk the walk as well as talk the talk & actually manage his own finances well.

custardy

This is your your fourth IFA thread. You think it could be an idea to put it all in one thread?

Twointhebush

That would be ideal, but as the answers can be numerous and are often glib, off topic and even political and even abusive (see my inheritance tax questions). It's a better idea to break down the questions for the sake of clarity.

tacpot12

Optimum age for an IFA is about 20 years old! Thus they will still be an IFA when you no longer need their services.

Unfortunately, a 20 year won't have the experience you need. So expect to change IFA, or DIY.

Mick70

tacpot12 wrote: »

Unfortunately, a 20 year won't have the experience you need. So expect to change IFA, or DIY.

<< good answer , would imagine most folk will change IFA at some stage

[Deleted User]

I would turn it around and actually ask your IFA what their succession plan is.

Thrugelmir

Reliance on a single individual is likely to lead to disappointment. A firm might be the better option.

SonOf

Funny you mention this as its a subject that has come up in our firm over the last few months as two of our advisers are now 65 and they have been asked multiple times what happens when they retire. In our case, we have a succession plan. We have a young trainee who is learning all the roles from the ground up and once they get to a certain stage, they will attend the meetings with the older adviser for a few years before the handover takes place. In the meantime, the younger trainee is also doing behind the scenes work for those clients supporting the IFA (in a paraplanner style role) so they learn about them more. This should make the handover seamless as the elder IFA will move more toward the paraplanner role as the trainee takes on more duties. They will effectively have had 5-6 years of working together before the elder one finally calls it a day. Another firm I am in close contact with has exactly the same process going on too.

Succession planning is something most adviser firms will have in place. Indeed, from a compliance point of view, they should have. This is easier with firms with multiple advisers. Its harder with a sole trader but an IFA firm has a value. So, it will either continue or it will be sold to another advice firm. Sadly, its mainly restricted firms that buy IFA businesses.

squirrelpie

It's just the same as with dentists and GPs, or indeed the man that maintains your car or paints your house. I'm told even policemen get younger every year

wjr4

I don’t think it matters what age an IFA is, as long as they have experience in administration & paraplanning first. That’s the usual route most new IFAs go through.