Independent Financial Advisors

[Deleted User]

Thrugelmir said:

Deleted_User said:

Thrugelmir said:

Deleted_User said:

Thrugelmir said:

As Warren Buffet famously quipped. If investing were that easy we'd all be librarians. You can always tell when markets are buoyant and investors become over confident in their own abilities. 

fewer day traders, 

You've heard of Robinhood presumably? 

Sure. I am talking about studies how invested funds are being managed overall. Robinhood plays with a small fraction of investible assets

When the market is dominated by passive funds. Who sets market prices? 

It is not. And never will be. And in any case IFAs do not invest. They just help to pick someone who does. 

Prism

I think more people are ignorant about investing than people who visit sites like this assume. I imagine most of them want to stay ignorant about investing as they find it incredibly dull. Yet almost every one who has a job in the UK nowadays is an investor even if they don't realise it.

Personally I think IFAs are best used after a lump sum from maybe a DC transfer or inheritance. Those who don't find it dull will probably learn enough to take over themselves. Those who have little interest will pay an IFA.

[Deleted User]

Prism said:

I think more people are ignorant about investing than people who visit sites like this assume. I imagine most of them want to stay ignorant about investing as they find it incredibly dull. Yet almost every one who has a job in the UK nowadays is an investor even if they don't realise it.

Personally I think IFAs are best used after a lump sum from maybe a DC transfer or inheritance. Those who don't find it dull will probably learn enough to take over themselves. Those who have little interest will pay an IFA.

Yes, a major event could be a good reason to chat to an IFA but not a good reason to subscribe to a deal which commits you to paying in the future and makes it hard to stop paying. If the charging system was a transparent hourly one off  fee, a lot more people would have found a sudden interest in learning about investing. 

Linton

Prism said:

1) I think more people are ignorant about investing than people who visit sites like this assume. I imagine most of them want to stay ignorant about investing as they find it incredibly dull. Yet almost every one who has a job in the UK nowadays is an investor even if they don't realise it.

Personally I think IFAs are best used after a lump sum from maybe a DC transfer or inheritance. Those who don't find it dull will probably learn enough to take over themselves. Those who have little interest will pay an IFA.

1) Indeed.  It did occur to me that Mordko's rant part 1 would make a good advertising sheet for an IFA.  Perhaps with a clickbait title like You dont need an IFA, save £thousands.  And on the other side "or you could make an appointment with  xxxxxx".  I would guess that a large majority of the UK population would have no understanding of what was being talked about.

2) Indeed again.  Many of us started small, either putting money into pensions with a limited choice of funds or starting to invest with £1K or so.  We (well me certainly) would make major mistakes, but it did not matter as the sums were small and contributions outweighed investment gains.  Those who have great wealth thrust upon them without the experience of investment failure are in a very difficult position.

But there is a serious side to this.  There is a danger that the anti IFA brigade will drive away the people who really need help.  It is rather unfortunate that IFAs who advise inappropiately are liable for their actions whilst those who discourage the people who need it most from getting help can do so with no come-back.  Perhaps it is a good thing that these forums mostly involve a small group of people talking amongst themselves.

DiggerUK

Mordko, it is refreshing to see another voice saying to all and sundry that they can, and should, take decisions for themselves.
The world of financial information has exploded over the last twenty years, which has made it so much easier for the 'kleiner mensch' to take charge of their own affairs, hat tip to you..._

Linton

DiggerUK said:

Mordko, it is refreshing to see another voice saying to all and sundry that they can, and should, take decisions for themselves.
The world of financial information has exploded over the last twenty years, which has made it so much easier for the 'kleiner mensch' to take charge of their own affairs, hat tip to you..._

Fine as long as they realise that it can go badly wrong, and if it does accept their responsibility and dont expect compensation.  But many people would rather pay for some level of protection.  Both options are available.

[Deleted User]

Although most IFAs and their supporters on this board may be perfectly tolerable individuals, there is an excruciating dislocation between advisers who liken themselves to doctors (largely pre covid) lawyers and accountants, and new posters compelled to engage them who see them as  banana republic border officials whose palms they have to grease to go forward. 

[Deleted User]

Linton said:

DiggerUK said:

Mordko, it is refreshing to see another voice saying to all and sundry that they can, and should, take decisions for themselves.
The world of financial information has exploded over the last twenty years, which has made it so much easier for the 'kleiner mensch' to take charge of their own affairs, hat tip to you..._

Fine as long as they realise that it can go badly wrong, and if it does accept their responsibility and dont expect compensation.  But many people would rather pay for some level of protection.  Both options are available.

It can go badly wrong with IFAs. As we are seeing on this board.  You are always the one responsible. Your are the one ending up well off or in trouble whether you take advice or not. A book on the subject provides better protection. After all, popular books are typically written by the best in this field. An advisor can be someone with a few months of education and some marketing experience. And incentives which don’t align with yours.

LHW99

I think more people are ignorant about investing than people who visit sites like this assume.

As well as not understanding percentages, and finding it difficult to assess probabilities (eg Monte Carlo simulations)

NottinghamKnight

I don't really understand the radically opposed opinions. I don't use an IFA but they may be valuable for some, the qualifications required aren't too onerous compared to most professions but then we have rampant grade inflation in all areas. Most professional services would be charged on he basis of a fixed fee for a defined scope of work, or at hourly rates to a budget estimate; percentage charging is fine for a rough idea but is now outdated for most professions including architects, engineers, solicitors, accountants etc Percentage figures, especially<1% look minor to many people, and certainly far less than say £200 an hour when presented to a client. Transactional advice would be good for may investors but the lack of certainty in income won't meet the financial requirements of most advisers, and it would appear to be rarely on offer from what is reported on the boards.