Why is the cost of advice so high?

LV_426

westv said:

dunstonh said:

Unbiased is no longer an IFA directory.  it is a lead generation site and they include FAs as well as IFAs.  Most of the IFA firms I know (as in talk to their owners/directors frequently) have stopped paying to be listed on unbiased (myself included).  One of the other big lead generation sites that masquerade as a directory tried to get us listed with them and they wanted a big chunk of any initial fee income of any client that signs up via them.    The only way to make that viable would have been to double the fee.    And that can be one of the problems of using lead generation/directory sites.      Most of the firms I see on that site are new advisers just starting out or those that give the impression they are short of clients.

So where does one go now to find local IFAs? Yell?

I really don't know. Even the thread on this site is still linking to Unbiased. The other one is VouchedFor, which looks very similar.
Who do you trust, and where do you turn to for honest advice?

BritishInvestor

ajfielden said:

I've been on the Unbiased website, and their whole method of finding an advisor now seems to have changed. Previously you could pick from a list of presented advisors. Now you just go through a multi click process and they spit out someone they chose for you. I've done it twice now, and it came back with the same people both times.

Does this work?

https://www.unbiased.co.uk/advisers/financial-adviser?

Unbiased regularly change their logic for how people get steered towards a solution - arguably not always for the better.

BritishInvestor

dunstonh said:

FAs and wealth managers tend to be more expensive as they typically charge a flat percentage against the amount with little or no tapering or cap.      General practitioner IFAs tend to be cheaper but there are always exceptions.  Some adviser firms are just greedy just as the same as every profession.

I've been on the Unbiased website, and their whole method of finding an advisor now seems to have changed. Previously you could pick from a list of presented advisors. Now you just go through a multi click process and they spit out someone they chose for you. I've done it twice now, and it came back with the same people both times.

Unbiased is no longer an IFA directory.  it is a lead generation site and they include FAs as well as IFAs.  Most of the IFA firms I know (as in talk to their owners/directors frequently) have stopped paying to be listed on unbiased (myself included).  One of the other big lead generation sites that masquerade as a directory tried to get us listed with them and they wanted a big chunk of any initial fee income of any client that signs up via them.    The only way to make that viable would have been to double the fee.    And that can be one of the problems of using lead generation/directory sites.      Most of the firms I see on that site are new advisers just starting out or those that give the impression they are short of clients.

Many years ago, an adviser laughed at me as he charged a high percentage amount and only needed 1/10th of the clients I needed to earn the same amount.   He got away with it because of sufficient numbers willing to pay silly amounts.   Its common in all walks of life.

They make it quite clear whether you are dealing with an Independent or 'Restricted - Whole of Market' on the site. But I agree the direction in which they have travelled has irritated a lot of IFAs.

BritishInvestor

westv said:

dunstonh said:

Unbiased is no longer an IFA directory.  it is a lead generation site and they include FAs as well as IFAs.  Most of the IFA firms I know (as in talk to their owners/directors frequently) have stopped paying to be listed on unbiased (myself included).  One of the other big lead generation sites that masquerade as a directory tried to get us listed with them and they wanted a big chunk of any initial fee income of any client that signs up via them.    The only way to make that viable would have been to double the fee.    And that can be one of the problems of using lead generation/directory sites.      Most of the firms I see on that site are new advisers just starting out or those that give the impression they are short of clients.

So where does one go now to find local IFAs? Yell?

Unbiased is still reasonable if you know how to use it, IMO.

LV_426

BritishInvestor said:

ajfielden said:

I've been on the Unbiased website, and their whole method of finding an advisor now seems to have changed. Previously you could pick from a list of presented advisors. Now you just go through a multi click process and they spit out someone they chose for you. I've done it twice now, and it came back with the same people both times.

Does this work?

https://www.unbiased.co.uk/advisers/financial-adviser?

Unbiased regularly change their logic for how people get steered towards a solution - arguably not always for the better.

Yeah thanks, that's what I was looking for - a list I can review and select from.

BritishInvestor

ajfielden said:

BritishInvestor said:

ajfielden said:

I've been on the Unbiased website, and their whole method of finding an advisor now seems to have changed. Previously you could pick from a list of presented advisors. Now you just go through a multi click process and they spit out someone they chose for you. I've done it twice now, and it came back with the same people both times.

Does this work?

https://www.unbiased.co.uk/advisers/financial-adviser?

Unbiased regularly change their logic for how people get steered towards a solution - arguably not always for the better.

Yeah thanks, that's what I was looking for - a list I can review and select from.

Great.

FYI - Unbiased have recently hiked their prices 

https://citywire.co.uk/new-model-adviser/news/unbiased-raises-cost-of-most-enquiries-with-tiered-pricing-structure/a1559257

which might mean that if you contact an adviser via the Unbiased they might not accept your enquiry as they now pay up to £130+VAT per lead (as well as for a listing).

You may therefore get a better response if you contact the advisers directly. 

lisyloo

ajfielden said:

I'm pondering whether to consult an IFA for advice on pension consolidation issues.
I just really baulk at the cost though. Someone I just spoke to wants £4k - £5k for a review and advice on where to put my money.
I'm quite willing to pay for advice, but come on, this is eye wateringly expensive!

My IFA works on a % basis.
but I know their advice has to go to various departments for “compliance”, so for example if I want to increase my pension contributions they will want to check against all the rules for example annual allowance.
that’s very simplistic but it all has to be audited and checked for various aspects - tax being one, liability would be another,
I think there is a fair amount of beaureacracy involved.

Thrugelmir

ajfielden said:

I just really baulk at the cost though. Someone I just spoke to wants £4k - £5k for a review and advice on where to put my money.

Horses for courses. Quoting high fees is a quick and easy of ending a conversation. 

LV_426

Thrugelmir said:

ajfielden said:

I just really baulk at the cost though. Someone I just spoke to wants £4k - £5k for a review and advice on where to put my money.

Horses for courses. Quoting high fees is a quick and easy of ending a conversation. 

Except they didn't, and I've had the usual fact finding questionnaire sent to me.
So I can only think that they consider 4-5k to be reasonable.

Alexland

ajfielden said:

So I can only think that they consider 4-5k to be reasonable.

Price is based on supply and demand not reasonableness.

If they find enough people are happy to pay high enough charges then they can build a business on it.

If you find there are enough offering a similar product then shop around and get a good price.

Try entering your postcode at https://adviserbook.co.uk/ and filter the results on the left hand side by clicking "confirmed independent".