Fee for IFA

Cobbler_tone

RogerPensionGuy said:

dbrookf said:

Managed to negotiate down to 1.3% from 2% (£9k instead of £15k 🫣) and the IFA tells us her fees are £300 per hour. Ah well, you live and learn.

9K at say £300 per hour 

With respect to IFA's who frequent this board. If my IFA was charging me £300 per hour I'd find another IFA. Outside of a highly qualified solicitor and medical consultant, I'm struggling to think of when I have ever paid that much for a service. A plumber tried once but I told him where to go. 

RogerPensionGuy

Cobbler_tone said:

RogerPensionGuy said:

dbrookf said:

Managed to negotiate down to 1.3% from 2% (£9k instead of £15k 🫣) and the IFA tells us her fees are £300 per hour. Ah well, you live and learn.

9K at say £300 per hour 

With respect to IFA's who frequent this board. If my IFA was charging me £300 per hour I'd find another IFA. Outside of a highly qualified solicitor and medical consultant, I'm struggling to think of when I have ever paid that much for a service. A plumber tried once but I told him where to go. 

I'm guessing £300 maybe slightly different to what some people think.

Say a customer has 3 X 2 hours sessions with an IFA equals 6 X £300 = £1,800.

IFA may have to do a total of 12 hours minimum or liklihood 18 hours and maybe 24 hours or more.

I think many people on here are fairly well informed and may feel IFA fees are a tadd high, like me who just wants a single product like an annuity or purchase life annuity.

So IFAs may look expensive, but they provide a great service by and large in my opinion. 

I know plenty of people who have less knowledge than many on here and have gone the DIY route and made some very expensive, irreversible and problematic decisions and if they ever actually realise they saved a penny and lost a pound they tend to keep it very quiet indeed. 

Whenever I chat to people that can't change stuff they got completely wrong, I just tell them the rules are not always clear, clunky and change, best they go to an IFA and see what they say. 

Cobbler_tone

RogerPensionGuy said:

Cobbler_tone said:

RogerPensionGuy said:

dbrookf said:

Managed to negotiate down to 1.3% from 2% (£9k instead of £15k 🫣) and the IFA tells us her fees are £300 per hour. Ah well, you live and learn.

9K at say £300 per hour 

With respect to IFA's who frequent this board. If my IFA was charging me £300 per hour I'd find another IFA. Outside of a highly qualified solicitor and medical consultant, I'm struggling to think of when I have ever paid that much for a service. A plumber tried once but I told him where to go. 

I'm guessing £300 maybe slightly different to what some people think.

Say a customer has 3 X 2 hours sessions with an IFA equals 6 X £300 = £1,800.

IFA may have to do a total of 12 hours minimum or liklihood 18 hours and maybe 24 hours or more.

I think many people on here are fairly well informed and may feel IFA fees are a tadd high, like me who just wants a single product like an annuity or purchase life annuity.

That's no different to tons of other industries though, in that you aren't just paying for 'direct' time.
Either way, I am sure that most IFA's on here wouldn't suggest you pay that amount...if of course engaging on an hourly basis. I guess the reality is that most services are not structured in that way and the good ones are not in the game of ripping people off. 

No different to getting a tradesperson charging you £20k for a job, when you might find a perfectly professional alternative (using the same materials) for £10k. Anyone shopping for new kitchens will know that game! 
The poster openly said they had negotiated from £15k to £9k. In my eyes, at that point the IFA has lost credibility.

Albermarle

RogerPensionGuy said:

Albermarle said:

Qyburn said:

Surely the acid test is the end result .

Either give £400k to the "online annuity" thing, behind the scenes someone gets a £10k kickback, and you get annuity of £18k/year

Or give £400k to the IFA, they deduct their £15k fee and arrange an annuity for you with the other £385k - do you end up with more or less than £18k/year?

From what I have read on other threads, the probable answer is that if your annuity is very straightforward, the IFA will struggle to get a better deal. However if you have say medical issues, or are looking for a more bespoke/niche annuity, then the IFA will probably win out.
Also the IFA will stop you making a  big blunder if you do not really know what you are doing.

Yes, I understand, if a person has medical conditions, the IFA can pad out the paperwork to get more payments.

However a person could say they smoke 40 faggs a day and weigh maybe 3 stones more than current weight etc etc.

I have often wondered if some people actually exaggerate their 'lifestyle issues' 
Although I guess they cross check with the GP, where most people downplay any bad habits.

So if you tell the annuity provider you drink 150 units of alcohol a week, and you have previously told your GP you sensibly drink only the recommended 14, then maybe a problem.........

wjr4

Albermarle said:

RogerPensionGuy said:

Albermarle said:

Qyburn said:

Surely the acid test is the end result .

Either give £400k to the "online annuity" thing, behind the scenes someone gets a £10k kickback, and you get annuity of £18k/year

Or give £400k to the IFA, they deduct their £15k fee and arrange an annuity for you with the other £385k - do you end up with more or less than £18k/year?

From what I have read on other threads, the probable answer is that if your annuity is very straightforward, the IFA will struggle to get a better deal. However if you have say medical issues, or are looking for a more bespoke/niche annuity, then the IFA will probably win out.
Also the IFA will stop you making a  big blunder if you do not really know what you are doing.

Yes, I understand, if a person has medical conditions, the IFA can pad out the paperwork to get more payments.

However a person could say they smoke 40 faggs a day and weigh maybe 3 stones more than current weight etc etc.

I have often wondered if some people actually exaggerate their 'lifestyle issues' 
Although I guess they cross check with the GP, where most people downplay any bad habits.

So if you tell the annuity provider you drink 150 units of alcohol a week, and you have previously told your GP you sensibly drink only the recommended 14, then maybe a problem.........

It’s also fraud if you lie, so I’m sure most people wouldn’t want to risk that. 

Also, on the fee note from a previous comment. The IFA can take their fee from the pension too.