Cancel IFA visit

Bod_1234

So I have never had any financial advice ever, mostly just used common sense.  Anyway, I have some reasonably substantial savings that I want to ensure I am getting the best from and just really have a general financial health check.

I went via a website matcher site titled Unbiased, and have been hooked up with someone working under 2plan wealth management umbrella.  The first visit is apparently free, and I have already chatted to the guy over the phone.  He started talking much more than what I was expecting, moving my pension and allsorts (he hasn't even seen my pension).

I'm not a bit nervous that I'm getting out my depth and he is coming around to change everything I have and skim his 3% comission...

Should I cancel?  Have I totally misunderstood what an IFA should be doing? It feels like I am going to get a high pressure sales pitch.

Daliah

"Wealth Management" would be an absolute no-go zone for me, as they are most unlikely to be independent financial advisors (IFAs), and more likely to be high pressure salespeople. If he mentioned commission, you should most definitely cancel, as IFAs are not allowed to charge commission. https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/guide-to-financial-adviser-fees

A good IFA will, however, want to understand your entire personal finances, including all your existing financial commitments, your marital/family status, your pensions, your income and its protection, your tax status, your risk profile. They are not there to advise you on the best savings accounts, although they might recommend a given account to hold your cash reserves. Their main job is to help you, against a charge, to choose and manage the best, most cost effective, investments for you.

dunstonh

I went via a website matcher site titled Unbiased, and have been hooked up with someone working under 2plan wealth management umbrella. 

unbiased list FAs and wealth management firms as well as IFAs.  It isn't the IFA directory it used to be.  2plan markets itself is a wealth management firm and appear to have an IFA proposition and a wealth management proposition.

The first visit is apparently free, and I have already chatted to the guy over the phone.  He started talking much more than what I was expecting, moving my pension and allsorts (he hasn't even seen my pension).

Most experienced advisers will be able to guess at what type of pension you have and whether it supports the modern drawdown options.    e.g. Stakeholder pensions and most older workplace pensions don't support drawdown.   Plus, statistically, around 4 out of 5 older plans are more expensive and more restrictive than modern plans.   

An IFA will take costs into account and won't transfer a pension unless it is viable to do so.    However, wealth management firms will look to transfer pensions onto their offering whether the newer pension is better or not.

I'm not a bit nervous that I'm getting out my depth and he is coming around to change everything I have and skim his 3% comission...

Commission was banned at the end of 2012.  Everything is explicit fee nowadays apart from some wealth management firms who sell their own product - which is still technically classed as a fee but less transparent. 

Have I totally misunderstood what an IFA should be doing? 

It sounds like it.  It is also unclear whether you are potentially employing a wealth manager service or an advisory IFA service.

It feels like I am going to get a high pressure sales pitch.

If wealth manager, probably yes.  If IFA, probably no.

bostonerimus

If you feel in any way uncomfortable then cancel. You are in charge. 

Albermarle

So I have never had any financial advice ever, mostly just used common sense.  Anyway, I have some reasonably substantial savings that I want to ensure I am getting the best from and just really have a general financial health check.

The problem is there is no such thing really as a 'general financial health check'

The advisors are heavily regulated and have to be careful to give you the correct personal financial advice. This can only be done by knowing all details about your finances, and quite a lot about you personally.( your objectives, plans, attitude to risk etc )

Then based on all this info they suggest a course of action, which usually includes moving your pension and other investments into their preferred products. This is not because they get commission for doing this, but for an IFA it makes it easier to manage clients with providers they are familiar with and they have access to special rates etc . An FA/wealth manager will of course want to move you to their products because they are working for that company.

It is not surprising your pension was mentioned, as for many people it is one of the most important financial products they have, so has to be part of the big picture.

You will not find anyone who will just run a quick slide rule over your finances and say 'looks OK to me' or ' maybe just worth looking at this' etc . The advisor is legally liable for any bad advice, so will only normally give advice when they have the full picture.

DrSyn

It is in your own interest to understand the difference between an Independent Financial Adviser  (IFA)
and a Financial Adviser (FA). I suggest you read through the following, it may help.
https://www.which.co.uk/money/investing/financial-advice/how-to-find-a-financial-adviser-affjl6z26bl4
https://www.moneysavingexpert.com/savings/best-financial-advisers/

Phone the person up and ask them outright if you if they are an IFA or a FA.

You state you are not a bit nervous then state "It feels like I am going to get a high pressure sales pitch".
Why is this, you have not even met them yet?

You are in charge. It is your money. If you feel uncomfortable then cancel. You can always book another IFA

UncleK

He wants 3% of your whole net worth. Avoid.

dunstonh

UncleK said:

He wants 3% of your whole net worth. Avoid.

No adviser charges on net worth.

Beddie

Bod_1234 said:

So I have never had any financial advice ever, mostly just used common sense.  Anyway, I have some reasonably substantial savings that I want to ensure I am getting the best from and just really have a general financial health check.

I went via a website matcher site titled Unbiased, and have been hooked up with someone working under 2plan wealth management umbrella.  The first visit is apparently free, and I have already chatted to the guy over the phone.  He started talking much more than what I was expecting, moving my pension and allsorts (he hasn't even seen my pension).

I'm not a bit nervous that I'm getting out my depth and he is coming around to change everything I have and skim his 3% comission...

Should I cancel?  Have I totally misunderstood what an IFA should be doing? It feels like I am going to get a high pressure sales pitch.

I suggest you meet up with the guy and use normal human skills to decide whether to take it further. They won't pressure you into anything. If you like them, and what they have to say about your finances, then take it further. Fees are negotiable if you have larger pensions or investments that you want them to work on, but that will all be explained in the meeting.

Ask questions! You'll soon know if they are worth using or not.

Daliah

Beddie said:

  They won't pressure you into anything. 

How do you know this?

Malthusian

Daliah said:

How do you know this?

Even an old-school salesman won't pressure the OP into anything at the introductory meeting.