Fear of financial advisors (and of paying for advice I don't need)

ali_bear

I am approaching retirement with a couple of DC funds and no mortgage and I know I'll be comfortably off once I have made the transition to pipe and slippers. I am numerate and fairly savvy when it comes to tax and investments. 
But the situation I want to avoid is where I have paid a financial advisor ££££ in fees only to be given very basic advice for something I could have done myself. I just want to avoid that feeling of being fleeced. But I understand it could be difficult to actually make arrangements without somehow an advisor being involved. 
How do I go about finding the right advisor who will understand my situation without taking advantage of me? 

Hoenir

ali_bear said:

How do I go about finding the right advisor who will understand my situation without taking advantage of me? 

By being clear from the outset what advice you are seeking. Agree terms etc. 

Linton

ali_bear said:

I am approaching retirement with a couple of DC funds and no mortgage and I know I'll be comfortably off once I have made the transition to pipe and slippers. I am numerate and fairly savvy when it comes to tax and investments. 
But the situation I want to avoid is where I have paid a financial advisor ££££ in fees only to be given very basic advice for something I could have done myself. I just want to avoid that feeling of being fleeced. But I understand it could be difficult to actually make arrangements without somehow an advisor being involved. 
How do I go about finding the right advisor who will understand my situation without taking advantage of me? 

In most cases you dont need an advisor to make arrangements.  Where advisors come in is to help you chose the right arrangements for your particular objectives and financial/personal circumstances.

Mark_d

Personally I would start with a well-know company with a good reputation eg.:
https://www.fairstone.co.uk/

dunstonh

But I understand it could be difficult to actually make arrangements without somehow an advisor being involved. 

It is not difficult.  The DIY market is thriving and plenty of companies will offer their products to DIY investors.   They won't offer advice but you don't want that but if you know what you want then they will facilitate it.

How do I go about finding the right advisor who will understand my situation without taking advantage of me? 

The choice should be IFA or DIY.  Do not use an FA.    Most IFAs are small local firms of 1-5 advisers.    They will have a similar internet presence to your local butcher.   Historically, small local firms have had better reputations than larger national firms.  Mainly because the larger firms have often worked to a salesforce-type model and are often the starting place for new advisers who stay until they move on to joining or creating a smaller independent firm.    The problem with small firms is that they are typically very busy working at or near capacity and often do not advertise as they don't need to.    In our area, none of the small IFAs appear on unbiased, vouchedfor etc  Those sites are dominated by the salesforces or nationals that buy up every postcode area.

The key thing to remember with an IFA is that you are not placing anything with them.  IFAs use providers from the marketplace.  No money passes through the hands of the IFA.   An IFA works for you. Whereas an FA works for their employer and the company they represent.

Statistically, the chances of getting bad advice are very low. That is not where the problems are.   The main issue is that some companies, because they are so busy, will price high.  Its cost where the most common issues are.

eskbanker

ali_bear said:

Fear of financial advisors (and of paying for advice I don't need)

If you don't need (or want) advice, don't buy it, simple!  Nothing wrong with making your own decisions (and taking responsibility for them if they turn out to be suboptimal)....

ali_bear

I've been making sub-optimal decisions my whole life so I have plenty of experience in that field 

OK look for small local IFA firm sounds like good advice 

Also be clear about what I want and agree terms

MallyGirl

That sounds the best way forward. Have an initial meeting with a couple and see if you can find one you feel you can work with. Just make sure they are an IFA

gm0

Look at the book recommendation threads.  For those and the better video content.  Even if you do use an adviser.  A better grasp on fundamentals and terminology will not hurt.  Or you may gain confidence and decide to DIY as some do here.

CSL0183

I am a good couple of decades off retirement so forgive me, Is it a legal requirement to get financial advice to release your pension funds in a DC scheme? 

Why can’t you just use it like a bank account with no financial advice? 

eskbanker

CSL0183 said:

I am a good couple of decades off retirement so forgive me, Is it a legal requirement to get financial advice to release your pension funds in a DC scheme? 

Why can’t you just use it like a bank account with no financial advice? 

No, there's no regulatory requirement for financial advice to access DC money, [edit:] unless there are safeguarded benefits worth over £30K....