IFA ongoing fee..Why pay?

lisyloo

fred246 wrote: »

If you found a rat in the kitchen eating your food would you make an agreement that it could only eat a quarter of your food or would you get rid of it?

I have an agreement with mine,
It can have all the spiders and flys that is likes as long as I don’t have to do anything.

fred246

lisyloo wrote: »

With a new vehicle it’s to keep the warranty valid.
I guess the equivalent is to have access to misspelling compensation and ombudsman if things go wrong.

I hate it when people misspell things. Never been compensated though.

Albermarle

I get why people go to a Financial Adviser initially, and I get why people may revisit when circumstances change, but why in the world pay an FA or IFA when the investment plan is ticking over?

If I remember correctly from the many previous threads on the same topic , the customers seem to prefer % charging rather than making a one off payment.
It could well be that this is mistaken by the client and/or they are led in this direction by IFA's .
However if you are providing a service ( or a product) you have to give the customers what they want /feel comfortable with and I guess for a lot of IFA clients this ongoing service gives them what Lisyloo said she likes.

as long as I don’t have to do anything.

Thrugelmir

Albermarle wrote: »

If I remember correctly from the many previous threads on the same topic , the customers seem to prefer % charging rather than making a one off payment.
It could well be that this is mistaken by the client and/or they are led in this direction by IFA's .

When you paying someone by the minute. Does focus the mind.

AlanP_2

verybigchris wrote: »

Most people pay a mechanic a specific price when they need them to do a specific job, and would baulk at the idea of paying them a regular fee when there's nothing wrong with their car.

Not sure that is true for "most" nowadays.

Many of the PCP / Contract deals include servicing from what people who have gone down that route tell me so they are paying them a regular fee when there's nothing wrong with the car.


On the IFA front there isn't a right or wrong answer and the number of threads there are on here about the subject illustrates that.

For many "investments" are one of the complex black arts that they don't understand, don't want to understand and have ZERO interest in what goes on under the hood. MSE contributors are not part of the "many" in the UK.

Yes, they should be more interested and engaged.

No, for most investments it needn't be complex.

My BIL tells me plumbing and electric aren't complex, black arts when I ask for advice with plumbing and electricic queries.

He has an advantage he is a time served plumber and runs a very succesful Plumbing, Heating and Elec business with turnover in 7 fugures.

Me, I'm amazed the lights come on when I press a switch - end of knowledge and interest - and am just grateful they do.

Thrugelmir

AlanP wrote: »

Many of the PCP / Contract deals include servicing from what people who have gone down that route tell me so they are paying them a regular fee when there's nothing wrong with the car.

If it's not serviced. How would the driver know?

fred246

My gut instinct tells me that new cars are serviced particularly badly at main dealers. Part of it is common sense. If a car is a year old with 5000 miles on the clock they don't bother taking the wheels off to check the brakes. You get charged for it though. You do need an oil change though. The problem is most people with a new car don't want a service they want a stamp. My dad taught me to service cars and then bought a brand new car himself. He took it to the main dealers for servicing but marked the parts beforehand. They never touched the car. Just stamped his book. He then had to complain and they 'repeated' the service at which point they actually did it. Can't be bothered with it. I just service my own from new. It's the only way to know it's been serviced properly.

AlanP_2

Thrugelmir wrote: »

If it's not serviced. How would the driver know?

Sorry, don't understand the point you are making?

Speedbird676

You don't know what the mechanic does behind the scenes. Likewise, you don't know what the IFA does behind the scenes.

In either scenario, what they charge may or may not be worth the cost, and it is a personal judgement whether it is value for money and whether to pay up or not.

Malthusian

Speedbird676 wrote: »

You don't know what the mechanic does behind the scenes. Likewise, you don't know what the IFA does behind the scenes.

You can ask though. And you don't need to leave hairs on the tyres like Fred's dad. A good IFA will quite happily yabber away about their Centralised Investment Proposition and investment committee decision making process until you remember why you pay someone else to worry about all this crap.