Relationship With Your IFA

GSP

I have been with my IFA for four years now, and he has been my only IFA.

Over the years, I have had to keep an eye on things as there have been a couple of occasions where he hasn’t spotted things that needed to be corrected. I feel happier looking at numbers every day just to make sure everything looks okay.
Even the platform provider has needed chasing up. I have done this, he has also done this.

Without the ‘benefit’ of having had more than one IFA to compare against, what are your expectations on how things should run?

I’d like to think we have a good relationship and the ‘errors’ were sorted out. One example was that out of my sixteen or so investments within my fund, on one occasion there was around £100k in cash for some reason which should have been around £40k. I wasn’t sure how long this inflated money had been sitting as cash. On one hand the growth may have been less, but if the market had gone down this ‘error’ would have helped my investments.

Ideally, everything should run 100% okay, I should not need to lack some trust where I feel I need to monitor things most days.

But for those who have an IFA, I’d like to hear their experiences? How have ‘things run’ over time? Any errors, are errors ‘par for the course’? Thanks.

squirrelpie

I had an IFA last century. I liked him, he was a nice chap. He didn't sell things when it was needed in the dotcom crash and cost me half a million. I've managed my own money since. It's a lot easier to blame myself if things go wrong, but so far they haven't.

DT2001

I’ve been with my IFA for 6 years. I keep a regular check and have only found one error when a new investment wasn’t made due to an administration error. He forgot to take his initial fee when I 1st used him (for a lump sum bonus payment into a new pension) for 3 months. The funds had dropped as it was in the midst of the Greek € crisis and he took the % of the fund at that time.

I run things past him on an irregular basis and find him a helpful sounding board. If he is unsure he says so and comes back to me after researching the matter. We have a good working relationship and I know he will stop me from being too adventurous bearing in mind where we are in relation to our end goals.

I think he is on par with other professionals I’ve worked with (accountants/solicitors/bankers etc).

Marcon

GSP said:

I have been with my IFA for four years now, and he has been my only IFA.

Over the years, I have had to keep an eye on things as there have been a couple of occasions where he hasn’t spotted things that needed to be corrected. I feel happier looking at numbers every day just to make sure everything looks okay.
Even the platform provider has needed chasing up. I have done this, he has also done this.

Without the ‘benefit’ of having had more than one IFA to compare against, what are your expectations on how things should run?

I’d like to think we have a good relationship and the ‘errors’ were sorted out. One example was that out of my sixteen or so investments within my fund, on one occasion there was around £100k in cash for some reason which should have been around £40k. I wasn’t sure how long this inflated money had been sitting as cash. On one hand the growth may have been less, but if the market had gone down this ‘error’ would have helped my investments.

Ideally, everything should run 100% okay, I should not need to lack some trust where I feel I need to monitor things most days.

But for those who have an IFA, I’d like to hear their experiences? How have ‘things run’ over time? Any errors, are errors ‘par for the course’? Thanks.

When you deal with people, errors happen. The shouldn't, but anyone who expects perfection is destined for an unhappy life! 'Even' the platform provider...well, that's pretty common and not the fault of your IFA. You do seem to be looking for things to pick on - have you asked why the cash was E100K when it 'should' have been £40K, and what impact it actually had on your portfolio? No point speculating on the impact - find out what it was.

Maybe all this is a discussion you should be having with your IFA? You've only been with them for 4 years, so it is too soon to assess just how much value they are adding to your portfolio in the longer term - but it is wholly reasonable to raise any concerns you have about their conduct. It would also give them a chance to correct any misunderstandings or misapprehensions you may have. 

GSP

Marcon said:

GSP said:

I have been with my IFA for four years now, and he has been my only IFA.

Over the years, I have had to keep an eye on things as there have been a couple of occasions where he hasn’t spotted things that needed to be corrected. I feel happier looking at numbers every day just to make sure everything looks okay.
Even the platform provider has needed chasing up. I have done this, he has also done this.

Without the ‘benefit’ of having had more than one IFA to compare against, what are your expectations on how things should run?

I’d like to think we have a good relationship and the ‘errors’ were sorted out. One example was that out of my sixteen or so investments within my fund, on one occasion there was around £100k in cash for some reason which should have been around £40k. I wasn’t sure how long this inflated money had been sitting as cash. On one hand the growth may have been less, but if the market had gone down this ‘error’ would have helped my investments.

Ideally, everything should run 100% okay, I should not need to lack some trust where I feel I need to monitor things most days.

But for those who have an IFA, I’d like to hear their experiences? How have ‘things run’ over time? Any errors, are errors ‘par for the course’? Thanks.

When you deal with people, errors happen. The shouldn't, but anyone who expects perfection is destined for an unhappy life! 'Even' the platform provider...well, that's pretty common and not the fault of your IFA. You do seem to be looking for things to pick on - have you asked why the cash was E100K when it 'should' have been £40K, and what impact it actually had on your portfolio? No point speculating on the impact - find out what it was.

Maybe all this is a discussion you should be having with your IFA? You've only been with them for 4 years, so it is too soon to assess just how much value they are adding to your portfolio in the longer term - but it is wholly reasonable to raise any concerns you have about their conduct. It would also give them a chance to correct any misunderstandings or misapprehensions you may have. 

Yes I am human and I do understand we are not machines and things do go wrong from time to time in just about everything. 

No, I was just looking at what acceptance these are at the IFA level.

Seeing errors where I was trusting someone with my money for £5k a year left me a little surprised, but if it takes my once over everything as well then so be it. Errors do happen.

As I said the extra amount on cash could have gone either way so best left I don’t investigate, its gone now.

cfw1994

DT2001 said:

I’ve been with my IFA for 6 years. I keep a regular check and have only found one error when a new investment wasn’t made due to an administration error. He forgot to take his initial fee when I 1st used him (for a lump sum bonus payment into a new pension) for 3 months. The funds had dropped as it was in the midst of the Greek € crisis and he took the % of the fund at that time.

I run things past him on an irregular basis and find him a helpful sounding board. If he is unsure he says so and comes back to me after researching the matter. We have a good working relationship and I know he will stop me from being too adventurous bearing in mind where we are in relation to our end goals.

I think he is on par with other professionals I’ve worked with (accountants/solicitors/bankers etc).

I guess the main difference between your IFA & the other professionals you've worked with is how you pay them.  I imagine the IFA is making rather more money from an on-going % if your net worth than your accountant/solicitor/banker!

My accountant charges me under £300 to deal with my tax return (including a small holiday let business).  Also takes the occasional phone call without a fee.  My bank pays me to keep my money safe.  Solicitors I've used over the years (mainly regarding house purchases) have all taken a fee for the task.

In theory an IFA could also charge an hourly rate for some advice....but in reality, I'm not sure any do.  Far easier to take 0.35-1% instead.


On the OPs topic: if I felt I had to double check everything my advisor was doing, I'd drop them like a stone and manage things myself! 

People often talk about the "peace of mind" in having a wise head to run things past with their financial advisors....those advisors may indeed help people towards their goals, with financial areas they feel they lack confidence in, and I do understand that.....as DT2001 put it, "a helpful sounding board" where you have no other options.....
....but having to "monitor things most days" seriously does not meet that definition of peace of mind to me!

If you are doing that, you can probably manage things yourself.  If you still feel the need for help....seek a new IFA!

 

SMcGill

If you want to choose the right IFA and have a good relationship with them you first of all need to be really honest with yourself about what kind of client you are. Second of all, tell the IFA

GSP

cfw1994 said:

DT2001 said:

I’ve been with my IFA for 6 years. I keep a regular check and have only found one error when a new investment wasn’t made due to an administration error. He forgot to take his initial fee when I 1st used him (for a lump sum bonus payment into a new pension) for 3 months. The funds had dropped as it was in the midst of the Greek € crisis and he took the % of the fund at that time.

I run things past him on an irregular basis and find him a helpful sounding board. If he is unsure he says so and comes back to me after researching the matter. We have a good working relationship and I know he will stop me from being too adventurous bearing in mind where we are in relation to our end goals.

I think he is on par with other professionals I’ve worked with (accountants/solicitors/bankers etc).

On the OPs topic: if I felt I had to double check everything my advisor was doing, I'd drop them like a stone and manage things myself! 

People often talk about the "peace of mind" in having a wise head to run things past with their financial advisors....those advisors may indeed help people towards their goals, with financial areas they feel they lack confidence in, and I do understand that.....as DT2001 put it, "a helpful sounding board" where you have no other options.....
....but having to "monitor things most days" seriously does not meet that definition of peace of mind to me!

If you are doing that, you can probably manage things yourself.  If you still feel the need for help....seek a new IFA!

 

It maybe something I accept more easily, the checking, just making sure everything looks right in my limited ability in this field. 

My old work role required playing devil’s advocate trying to pull reports apart before they were circulated to board members.

GSP

SMcGill said:

If you want to choose the right IFA and have a good relationship with them you first of all need to be really honest with yourself about what kind of client you are. Second of all, tell the IFA

Thanks. Could you be more specific?

DT2001

cfw1994 said:

DT2001 said:

I think he is on par with other professionals I’ve worked with (accountants/solicitors/bankers etc).

I guess the main difference between your IFA & the other professionals you've worked with is how you pay them.  I imagine the IFA is making rather more money from an on-going % if your net worth than your accountant/solicitor/banker!

My accountant charges me under £300 to deal with my tax return (including a small holiday let business).  Also takes the occasional phone call without a fee.  My bank pays me to keep my money safe.  Solicitors I've used over the years (mainly regarding house purchases) have all taken a fee for the task.

In theory an IFA could also charge an hourly rate for some advice....but in reality, I'm not sure any do.  

 

Accountant and banker were paid less.
I accept I’m twisting your meaning however the corporate solicitor I worked with on the sale of a business (which funded the vast majority of my private pension from a sale bonus) charged a %. This % would have covered the main shareholder’s (51%) new investment portfolios ongoing charge for 15 years!

I agree with an hourly charging system however I have seen that ‘abused’ when people are targeted to bill X hours p.w. 

Nothing is perfect however an IFA can add value, in your eyes, whether it be access to better research, more objective, hand holding or good strategic advice.

Competition has reduced costs and regulations improved overall advice.

The consumer can always move to another firm or DIY

GSP

DT2001 said:

cfw1994 said:

DT2001 said:

I think he is on par with other professionals I’ve worked with (accountants/solicitors/bankers etc).

I guess the main difference between your IFA & the other professionals you've worked with is how you pay them.  I imagine the IFA is making rather more money from an on-going % if your net worth than your accountant/solicitor/banker!

My accountant charges me under £300 to deal with my tax return (including a small holiday let business).  Also takes the occasional phone call without a fee.  My bank pays me to keep my money safe.  Solicitors I've used over the years (mainly regarding house purchases) have all taken a fee for the task.

In theory an IFA could also charge an hourly rate for some advice....but in reality, I'm not sure any do.  

 

Nothing is perfect however an IFA can add value, in your eyes, whether it be access to better research, more objective, hand holding or good strategic advice.

Competition has reduced costs and regulations improved overall advice.

The consumer can always move to another firm or DIY

I agree I would always feel more comfortable having an IFA. They are exposed to ‘material’ on a daily basis looking after a number of clients, so would hope they are best placed to make informed decisions.

From my OP, because I have nothing to compare against should I accept what I have or is there a 100% accurate service out there? I wouldn’t want to change my IFA if he was already one of the best without me knowing.