iFA qualifications for retirement advice

DT2001

Ibrahim5 said:

I don't get tax relief when I pay my dentist. Why should I to pay an IFA? The fees should be paid direct from customer to IFA. Some would have to get a bank loan to pay the fees of course.

It is only from inside a pension and presumably you are happy for any fund fees to be taken similarly and increase your costs?

You have ignored my response to your point about people knowing about the charges so do you now agree that it is clear as you are advised each and every year by a third party (the platform).

BritishInvestor

zagfles said:

BritishInvestor said:

zagfles said:

BritishInvestor said:

bostonerimus said:

BritishInvestor said:

bostonerimus said:

My feeling is that an IFA can provide a plan for the unknowledgeable and useful validation for people who have done a bit of their own research, but for most people there is no need for on going advice and annual fees once they are set on a sensible financial path using tax efficient accounts. I have a friend back in the UK who has a USS pension an ISA and a mortgage. She is in her early 40s and has a good emergency cash account and the rest she puts into global equity funds and extra mortgage payments. She plans to move into the USS default target retirement fund in her 50s. She has a simple plan and is sticking to it.

What sample set of people did you use to determine this?

"but for most people there is no need for on going advice and annual fees once they are set on a sensible financial path using tax efficient accounts"

The "entirely off the top of my head" sampling method with a bit of my personal experience and that of my friends, family and colleagues. Their financial lives are just not that complicated. I've also managed to keep my finances simple: understood my budget, spend less that I earn, bought a house, saved for retirement and in general accounts using simple index funds. I never felt the need for advice and I think most working people will be in a similar situation most of the time. However, I am going to take advice from a lawyer about my will and estate planning. Getting advice is sometimes very prudent and necessary, paying an annual retainer to an IFA isn't necessary IMO.

I think everyone would benefit from a financial planner (myself included) to act as a sounding board and avoid making suboptimal decisions.

Whether it makes sense for them to do so given the costs involved is another matter.

The vast majority of the population lack the time, knowledge or interest to make the correct financial decisions, unfortunately (IMO). Not sure how to fix that one.

Most probably don't need individually tailored advice any more than they need individually tailored clothes. Stuff like workplace pension defaults/range of defaults for difference attitide to risk, retirement age and retirement intention are likely to be fine for most. Those with more complex affairs can use boards like this as a "sounding board" and get opinions from a wide range of experienced investors for free, rather than rely on a single IFA or "financial planner" who will take a significant cut of their pension.

I was discussing planning, not advice. 

Your post seems to be referring to advice and financial products. 

No, more about planning, not products or advice. Workplace pension scheme options, investment pathways in drawdown etc, fall more into planning, since they tend to select from a very small range of products, certainly not from the whole of the market, something an IFA would do. And no advice is provided, except for a free session around the time of retirement. My workplace pension only has about 20 funds even for those who want to choose their funds rather than use the default options. But the products are good, low charge products with a sensible range of "plans" based on stuff like intended retirement age, attitude to risk, and intention in retirement (eg drawdown/annuity).

Financial planning is about the person. You keep mentioning products/investments/pensions.

zagfles

BritishInvestor said:

zagfles said:

BritishInvestor said:

zagfles said:

BritishInvestor said:

bostonerimus said:

BritishInvestor said:

bostonerimus said:

My feeling is that an IFA can provide a plan for the unknowledgeable and useful validation for people who have done a bit of their own research, but for most people there is no need for on going advice and annual fees once they are set on a sensible financial path using tax efficient accounts. I have a friend back in the UK who has a USS pension an ISA and a mortgage. She is in her early 40s and has a good emergency cash account and the rest she puts into global equity funds and extra mortgage payments. She plans to move into the USS default target retirement fund in her 50s. She has a simple plan and is sticking to it.

What sample set of people did you use to determine this?

"but for most people there is no need for on going advice and annual fees once they are set on a sensible financial path using tax efficient accounts"

The "entirely off the top of my head" sampling method with a bit of my personal experience and that of my friends, family and colleagues. Their financial lives are just not that complicated. I've also managed to keep my finances simple: understood my budget, spend less that I earn, bought a house, saved for retirement and in general accounts using simple index funds. I never felt the need for advice and I think most working people will be in a similar situation most of the time. However, I am going to take advice from a lawyer about my will and estate planning. Getting advice is sometimes very prudent and necessary, paying an annual retainer to an IFA isn't necessary IMO.

I think everyone would benefit from a financial planner (myself included) to act as a sounding board and avoid making suboptimal decisions.

Whether it makes sense for them to do so given the costs involved is another matter.

The vast majority of the population lack the time, knowledge or interest to make the correct financial decisions, unfortunately (IMO). Not sure how to fix that one.

Most probably don't need individually tailored advice any more than they need individually tailored clothes. Stuff like workplace pension defaults/range of defaults for difference attitide to risk, retirement age and retirement intention are likely to be fine for most. Those with more complex affairs can use boards like this as a "sounding board" and get opinions from a wide range of experienced investors for free, rather than rely on a single IFA or "financial planner" who will take a significant cut of their pension.

I was discussing planning, not advice. 

Your post seems to be referring to advice and financial products. 

No, more about planning, not products or advice. Workplace pension scheme options, investment pathways in drawdown etc, fall more into planning, since they tend to select from a very small range of products, certainly not from the whole of the market, something an IFA would do. And no advice is provided, except for a free session around the time of retirement. My workplace pension only has about 20 funds even for those who want to choose their funds rather than use the default options. But the products are good, low charge products with a sensible range of "plans" based on stuff like intended retirement age, attitude to risk, and intention in retirement (eg drawdown/annuity).

Financial planning is about the person. You keep mentioning products/investments/pensions.

What? OK, "retirement planning" then. Most people in our workplace scheme don't choose products or investments, they choose a plan. Not a tailor made plan, because the vast majority don't need that. A selection of "off the shelf" plans. Without the need to hand over a large chunk of their pension to do so.

dunstonh

I just finished a review case that took the equivalent of 3 days work.    I am not sure how many would do that for £50.

RogerIrvine

It's all go, and much work goes unsung and unrewarded. But may we ask, dunstonh, how you have found time to post one hundred and eight thousand times on this forum?

dunstonh

RogerIrvine said:

It's all go, and much work goes unsung and unrewarded. But may we ask, dunstonh, how you have found time to post one hundred and eight thousand times on this forum?

I have been posting here since the late 90s when the board used to be on YABB and then VBB a few years later to the one it is with now.  Post counts were carried over.

RogerIrvine

Still an impressive score for someone in full-time employment. Trust the industry you represent values your contribution. Does your profile here generate business for you? 

TriathNanEilean

RogerIrvine said:

Still an impressive score for someone in full-time employment. Trust the industry you represent values your contribution. Does your profile here generate business for you? 

That's a harsh post. I've learned a lot over the years from regular, knowledgeable posters like dunstonh and never seen him touting for business.

What is a pain is having to wade through pages of "pile on IFAs" posts in case I miss something relevant to the thread (as has happened today, as I try to judge the intro session I've just had with a potential IFA). Nothing wrong with strongly held views but can I plead that they stay in threads for that discussion? And not hijack so many other threads.

zagfles

TriathNanEilean said:

RogerIrvine said:

Still an impressive score for someone in full-time employment. Trust the industry you represent values your contribution. Does your profile here generate business for you? 

That's a harsh post. I've learned a lot over the years from regular, knowledgeable posters like dunstonh and never seen him touting for business.

What is a pain is having to wade through pages of "pile on IFAs" posts in case I miss something relevant to the thread (as has happened today, as I try to judge the intro session I've just had with a potential IFA). Nothing wrong with strongly held views but can I plead that they stay in threads for that discussion? And not hijack so many other threads.

"Touting for business" would be against forum rules so nobody's going to do that. Well, not directly anyway!

PS there's a useful ignore function so you can avoid ploughing through posts of those who never seem to add value to any threads. Click on person, red button on right, Ignore.

RogerIrvine

TraithNanEilean, it was dunstonh posting that he had crafted a review from 3 days work for a nominal sum that begged my question. The post count tells its own story.  Whether that comes from dedication to the interests of his profession or the profession allows time for the effort here, it would be hard to find, say, a dentist posting in such volume on social media.

I don't recognise the "pile on IFA" picture. What happened on this thread was that Ibrahim was met by three different opposing posters. Obviously, I back the right of anyone to present things from their own experience/perspective and uphold their view on the forum but, if it comes to who has more skin in the game, there's no contest: nobody has invested more in putting across their points than dunstonh.

Good luck with your prospective adviser.