Views on advisors

Cus

There are 120,000 plumbers, over 40,000 dentists, but only 5,000 IFA's in the UK.  The obvious conclusion is that we value drains and plaque more than financial health 😁

HappyHarry

Cus said:

There are 120,000 plumbers, over 40,000 dentists, but only 5,000 IFA's in the UK.  The obvious conclusion is that we value drains and plaque more than financial health 😁

I know IFA numbers are low, but that seems very low to me.  Where did you get those figures? I'm not saying your wrong, but I thought there were many more.  Maybe this is IFA businesses rather than individuals?

Alexland

BananaRepublic said:
However, if someone does not feel confident to DIY, there is nothing to stop them studying the IFA courses. I wonder if anyone on these forums has done this? After all a 1% fee on a £1,000,000 pot is £10,000 which is much higher than the DipFA fees quoted online. 

If you are only studying for your own purposes there is no need to pay the membership fees or sit the exams. I simply bought the CII module textbooks on ebay as they get sold very cheaply by people that don't need them anymore. For the dentistry kit I would probably buy in new condition..

Scrudgy

Well for me, if the “trolls” are polluting the forum, bring it on. I like seeing views from opposite ends of the spectrum, keeps things balanced.

What would be the point of a discussion forum where every post was supporting only one side of the divide.

dunstonh

I tried to find out the minimum qualifications required to practise as an IFA, and the internet (which never lies  ...) suggests a DipFA is needed, which requires seven months part time study, or nine months full time study, according to different sources. 

The qualifications sit between A level and degree as a minimum and that is just the IFA side.   There are several more qualifications needed for mortgages and equity release.   Then there are higher level qualifications that build towards a degree level qualification. Many IFAs will hold one or more of these.   We have an apprentice taken on at age 19.  She will be 25 before she sits in front of an investment client.   She is going the paraplanning side first, then will do mortgages and insurance and will eventually do the IFA side.     Most IFAs dont start out as such. It is part of a career progression to get there (often unintended).

However, if someone does not feel confident to DIY, there is nothing to stop them studying the IFA courses. I wonder if anyone on these forums has done this? After all a 1% fee on a £1,000,000 pot is £10,000 which is much higher than the DipFA fees quoted online.

No-one should be paying 1% on £1mill unless its a prestige firm.     

Many of the exams are notoriously difficult to pass without experience or going on courses.   The courses are not cheap.   However, it would be an interesting exercise albeit totally pointless.   And like most things in life, you really only start learning it when you are doing it.  The real world with commercial issues and people with varying knowledge, ability and personality is a long way from the generic text book person looking at generic text book answers.    

I know a firm near us that works with the university and runs it as a course to go through to degree level and the firm sets them up with a position at the end.   Most of the individuals come out of there with very strong textbook knowledge.  Not so many come out with the ability to work with clients.  Not many stay on to make the grade.  They do make good technical support and compliance officers though.

I know IFA numbers are low, but that seems very low to me.  Where did you get those figures? I'm not saying your wrong, but I thought there were many more.  Maybe this is IFA businesses rather than individuals?

A quick google check shows 4814 IFA firms in the UK.  IFA count is at 18,397 as of 2019 (FCA data)

Cus

I take it back, 18k it is.  So there are roughly double the number of dentists as IFA's.

There are NHS registered dentists to allow people to get checked up. Do we have government funded IFA's?

NottinghamKnight

Of course you can do your own dentistry, just speak to bob mortimer and get a supply of your own fuji 9.

Bacman

If you are happy to take risks and also are the "lucky" type of person, then by all means research and use stocks and shares. If however you are after a low hassle income from investment funds then fixed rate bonds are a good option.

Pension companies don't seem great at making your pot larger, and on top of that they also charge a fee too for the privilege of losing money on your investment from your accounts, in contrast you can get a guaranteed income amount for the period of years you have fixed rate bonds for.

You are better managing your own portfolio if you can.

[Deleted User]

Bottom line is, you cannot devolve financial responsibility to an adviser. Advisers advise, individuals reap the consequences. 
Like it or not, you are master of your own dentistry.

DiggerUK

I'm not making this up.....but I'm still surprised to find it the same as when I first arrived on MSE.  While not compulsory, English and Maths GCSEs are beneficial for those wishing to give financial advice.  

Would be nice to know exactly how financial advisors manage to write annual reviews and calculate their fees properly..._