To use an IFA or not?

short_bread

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

shinytop

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

short_bread

shinytop said:

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

Years ago. The place seems to have gotten nastier though, it used to be a lot more about helping out and sharing knowledge.

Albermarle

short_bread said:

shinytop said:

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

Years ago. The place seems to have gotten nastier though, it used to be a lot more about helping out and sharing knowledge.

It still is mainly and many first time posters appreciate the quick and usually well informed answers.
I think maybe people get weary of the same questions being asked time and time again and people asking questions but giving very little info to base an answer on.
Plus of course like all internet forums there are some occasional battles over opinions.

bigadaj

Albermarle said:

short_bread said:

shinytop said:

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

Years ago. The place seems to have gotten nastier though, it used to be a lot more about helping out and sharing knowledge.

It still is mainly and many first time posters appreciate the quick and usually well informed answers.
I think maybe people get weary of the same questions being asked time and time again and people asking questions but giving very little info to base an answer on.
Plus of course like all internet forums there are some occasional battles over opinions.

Check the posting history.

short_bread

bigadaj said:

Albermarle said:

short_bread said:

shinytop said:

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

Years ago. The place seems to have gotten nastier though, it used to be a lot more about helping out and sharing knowledge.

It still is mainly and many first time posters appreciate the quick and usually well informed answers.
I think maybe people get weary of the same questions being asked time and time again and people asking questions but giving very little info to base an answer on.
Plus of course like all internet forums there are some occasional battles over opinions.

Check the posting history.

Why are you stalking me around the forum?

bigadaj

short_bread said:

bigadaj said:

Albermarle said:

short_bread said:

shinytop said:

short_bread said:

BritishInvestor said:

short_bread said:

The value of an IFA is not what they can do for your money, it's what they can do for you. You pay them so that you don't have to worry about your money, for doing the admin, to have someone to call, and to have someone to blame.

I would hope for a little bit more from an IFA. What about genuine value add tasks such as helping you put a plan in place (and help/ensure you stick to it) to enable you to leave your stressful/hated job a few years from now without worrying about running out of money? People (should) pay an IFA for peace of mind and clarity, not to "manage their money".

Well that comes to temperament and financial education.

You seem somehow familiar, short_bread.  Are you sure you haven't been (thrown off) here before ?

Years ago. The place seems to have gotten nastier though, it used to be a lot more about helping out and sharing knowledge.

It still is mainly and many first time posters appreciate the quick and usually well informed answers.
I think maybe people get weary of the same questions being asked time and time again and people asking questions but giving very little info to base an answer on.
Plus of course like all internet forums there are some occasional battles over opinions.

Check the posting history.

Why are you stalking me around the forum?

Well it started with you criticising more than one of my posts on different so the question could be reversed?

IvanOpinion

Nick9967 said:

Just need some opinions if there are any,
Planning my early/semi retirement at 58, now 53.
Got a pot with SW of about £205k still paying in about £220pm gross.
My pot has grown over 6% this year so not bad in the current climate.
Up until 2 years ago my pot was managed by Aspira, for various reasons it has stayed in the funds they advised but not been managed for the past 2 years.
Which in itself is not an issue to me.
Clearly I'm needing to plan my next few years and am in doubt whether to:

1. Leave alone with no management of IFA  
2. Re-contract Asvira for 0.25% pa and get some management and a once a year chat about what to do!
3. Find a good IFA, clearly pay more but bank on them being able to manage what i have for better growth? risky?

When it comes to 58 my income will come from various points, pot drawdown, cash from my 25%, cash from house downsize (about £100k) part time work , wifes salary.
Then later at mid 60's a couple of other points will kick in , SP me and wife, wife LGPS , second property sale.  
I'm in 3 minds what to do ? do i really need an IFA before 58 (may need something then to minimise tax etc)
any ideas ?

Back on topic.  In answer to your question, NO, you do not need an IFA before 58.  Especially if you feel confident enough to manage your investments yourself - even if not then look for a high quality mixed asset fund and let the fund manager manage it, alternatively look for a cheap index tracker and let the markets 'manage' it.  You may benefit from some advice in relation to how you split up your money over the next few years - but again you could guesstimate this yourself.

You have several years to read up and inform yourself of your options for retirement - virtually every financial site will provide bits of information.  At 58 you may have gained enough confidence and understanding to do it yourself, on the other hand you might well benefit for some quality advice from a good IFA.  But first you could also ask specific questions on this or other forums where there are some excellent posters that offer genuine thought out responses to questions being asked (but not 'advice' ).

What I would say, if you engage an IFA, is work out a fixed rate, and ascertain how many hours of work this will provide, resist the temptation of allowing them to take a percentage of your pot (that would eat into your returns).  Only you can judge what is value for money for you.

dunstonh

What I would say, if you engage an IFA, is work out a fixed rate, and ascertain how many hours of work this will provide, resist the temptation of allowing them to take a percentage of your pot (that would eat into your returns).  Only you can judge what is value for money for you.

Hourly rate is one of the most unpopular methods with consumers as you do not know your final bill in advance.   You can end up paying far more with an hourly rate than a percentage of fixed price tariff.

The adviser will not know the work in advance and if you are a chatty person you will be paying for your time to talk.   If your work involves a pension provider that is difficult on admin, slow to respond etc then you end up paying for that.

You should not rule out percentage (or other methods) as they can be cheaper than hourly rates.  They can also be more but the key is the bottom line.  Not the method used.  

fred246

What he means is that the IFA will be very slow in filling the form out if you ask to be charged per hour. It's amazing how slow an IFA can be when they want to be.