Views on advisors

fred246

If I hired an IFA I would expect him to make me poorer so I'm sure he would be able to meet my expectations.

Linton

ZingPowZing said:

Linton said:

ZingPowZing said:

Linton said:

ZingPowZing said:

ChilliBob said:

I'd be interested to know of any obvious questions to weed out !!!!!! people?

"So, your initial fee is xxxx; can you show me that you can save me xxxx +1 at the outset?"

Doesnt that rather depend on what you would do without advice?  In any case the primary issue isnt maximising returns but rather achieving objectives at minimum risk.

Hopefully a good IFA would explain, in the nicest possible way, why your question is foolish.

Chillibob has already indicated that he would invest 100% in funds, that his risk profile is very cautious and that his objective would be to have a steady stream of income off which he can live (potentially forever) and the value of the shares he is selling may put him in that ballpark. He has some experience of investing in ISAs and a decent pension. His accountant will be investigating the tax angles. He has an economics degree. He is well capable of gauging the glidepath to his objectives. The funds he chooses will, in any case, have at least one set of managers who are paid on results. 
You're really suggesting that he should employ an IFA to provide a service that should be unquantifiable ?

Almost all services are unquantifiable.  Do you choose your barber/hairdresser on the cost per hairs trimmed or a private doctor on the number of days you werent ill?

Lol, I did wonder whether comparisons between financial advisers and doctors might be suspended for the duration of the covid pandemic. The main difference would be a doctor's ability, when needed, to help make a patient better. Financial Advisers are essentially unaccountable - not only do they not claim nor aim to outperform a random pinsticker; they get paid the same either way. The real function of Chillibob's adviser, if he takes one on, would be to manage his expectations. 

You keep on implying that the objective of using an IFA is to maximise returns which is simply untrue.  Any advisor who invested in that way without making the risks very clear to the client should be sacked. More importantly because of the regulation of iFAs the client could be recompensed for any resultant losses. A safeguard which, perhaps unfortunately, is not available to users of this board nor to advice from mates nor to readers of books and articles.

But I believe you have half got the situation right in saying that the objective is to manage expectations, I see that as an important part of the service.  Clearly if the customer believes that his £200/month pension contribution is going to provide for a comfortable lifestyle and early retirement,  management of expectations is vital.

The half you miss is to align the financial strategy and hence investment approach and hence choice of funds with expectations ending up in a viable strategy that satisfies the customer and has a good chance of success.   If that requires a reduction in potential returns to improve likelihood of success, so be it.

hoofy

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

BrockStoker

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

AlanP_2

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Not from someone who is chasing the highest returns by the sounds of it

hoofy

AlanP_2 said:

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Not from someone who is chasing the highest returns by the sounds of it

I've invested money I will probably never need, just for something to make life a bit more interesting.

Prism

hoofy said:

AlanP_2 said:

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Not from someone who is chasing the highest returns by the sounds of it

I've invested money I will probably never need, just for something to make life a bit more interesting.

Would you be so relaxed about it if it was your life savings with a goal to keep you through retirement?

[Deleted User]

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Imo no more strange than the claim that "almost all services are unquantifiable,"
If you pay Council Tax, you get your bins emptied every fortnight, if you fill up at a service station, you're literally watching the clock and woe betide you don't notice the difference when your partner comes back from the hairdresser. 

Can see how it helps to take the pressure off, though.

Thrugelmir

hoofy said:

AlanP_2 said:

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Not from someone who is chasing the highest returns by the sounds of it

I've invested money I will probably never need, just for something to make life a bit more interesting.

There are socially beneficial investing options available. 

hoofy

Thrugelmir said:

hoofy said:

AlanP_2 said:

BrockStoker said:

hoofy said:

Two months ago I decided to start investing because of the low interest rates on offer from the banks so I read up for a couple of days and then ploughed right in.

I know I might have made some highly risky/poor choices in the funds that I chose, but tbh, I'd rather lose money than have to deal with an IFA.

Same as last time I sold a property. I possibly could have got a better price if I'd have used an estate agent instead of putting my own for sale sign up, but again, I'd rather lose money than deal with an estate agent.

I've read some strange things on the interweb, but your post has to be one of the strangest I've ever come across!

Not from someone who is chasing the highest returns by the sounds of it

I've invested money I will probably never need, just for something to make life a bit more interesting.

There are socially beneficial investing options available. 

You mean like investing in companies that support renewable energy, etc?

Why would that be something that might be more of interest to me with my circumstances?