choosing a new IFA

dunstonh

2.5%pa "all-in" is indeed the upper end of sanity, and charging a 5% initial fee on top means they are going for clients with absolute zero cost-consciousness. 2.5% suggests it was a salesman (tied adviser) from St James's Place or similar, not an IFA.

That is what I was thinking.  5% and 2.5% pa. sounds right in the "wealth management" range of fees rather than advisory IFA service.

IvanOpinion

dunstonh said:

2.5%pa "all-in" is indeed the upper end of sanity, and charging a 5% initial fee on top means they are going for clients with absolute zero cost-consciousness. 2.5% suggests it was a salesman (tied adviser) from St James's Place or similar, not an IFA.

That is what I was thinking.  5% and 2.5% pa. sounds right in the "wealth management" range of fees rather than advisory IFA service.

Not sure how long 'Wealth Managers' have been about, but he introduced himself as an IFA with a huge amount of emphasis and explanation on how the 'I' was so important.  I am trying to think exactly when this was ... I am guessing 2014-2016 (if that makes any difference)

AlanP_2

tcallaghan93 said:

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Up 25%? And your other half is down over the same period. Sounds odd- well it sounds odd but true, and she has reams and reams of nicely printed figures to prove it. (I agree a bit with the comment about index funds btw but it all depends on your attitude to risk).  

/
Fair enough, I don't trust a single fund manager with my money but I do believe that British and global businesses will deliver very satisfactory returns over the long term so I prefer the safety owning the lot to the risk of a few fund managers opinions.

So if no fund manager is involved in your investments and youi own the lot that is a hell of a number of individual shares across a lot of world markets so I would think your costs must be a lot higher compared to choosing a fund mamager or managers such as Vanguard or HSBC and using a Global Multi-Asset solution.