Do I really need an IFA to draw my pension?

Moonwolf

Cobbler_tone said:

Is a good IFA only like a good plumber these days? i.e. only by recommendation?!
I keep seeing where not to get one but rarely a recommended source to fish for one.

I always wonder about this.  It feels to me that if you are using an IFA you have already sacrificed some of your willingness to learn for the service you are buying it is possible you don't really know how good it is until the end point, perhaps drawing down your pensions.  This can create problems with word of mouth.

- In many cases, either the IFA will be young enough they won't have supported many people through to drawing down pension, or they will be old enough that they won't be there all the way for you. 

- Most of the dodgy IFAs in the British Steel scandal got business through word of mouth.  Some of their customers will have seen the transferred pot growing well and been happy until they understood the underlying loss of value.

- A really clever nerdy IFA with no social skills might be better than a charmer who has scraped through his exams, but may be less likely to be recommended.

This has always put me off, and as a result, while I have done OK, I could well have done better with ongoing professional advice. However, as someone who gets ripped off by garages (knowing nothing about cars) and sees friends being ripped off by IT services (having always built and maintained my own machines) I've never felt comfortable looking for an IFA.

wjr4

Moonwolf said:

Cobbler_tone said:

Is a good IFA only like a good plumber these days? i.e. only by recommendation?!
I keep seeing where not to get one but rarely a recommended source to fish for one.

- A really clever nerdy IFA with no social skills might be better than a charmer who has scraped through his exams, but may be less likely to be recommended.

As an IFA, I agree with this point. I know a lot of people who are very intelligent, technical and struggle with social skills (maybe because of autism or just a general lack of self confidence, both of which won’t affect the quality of advice you get) vs someone who took the exams as quickly as possible and just get new clients as they can chat all day! 

Ibrahim5

I service and repair my own cars better than any garage ever could. I build my own PCs and look after them better than any IT specialist ever could. I am much better at looking after my finances than any IFA could ever do. I just lack self-confidence.

coyrls

The hard truth is that you will struggle to find an IFA that would taken on somebody who is unemployed with £200K in their pension pot.

quantum

coyrls said:

The hard truth is that you will struggle to find an IFA that would taken on somebody who is unemployed with £200K in their pension pot.

Because? Please explain.

quantum

I've got a meeting with PensionWise tomorrow. Thanks Tacpot12.
Thank you for all your comments. 

Ibrahim5

The average fee is 0.8%. For a pot of £200k you could only charge £1600 per year. It's not gonna be enough for the latest golf clubs or the 911 Turbo. They only want rich customers.

FIREDreamer

Ibrahim5 said:

The average fee is 0.8%. For a pot of £200k you could only charge £1600 per year. It's not gonna be enough for the latest golf clubs or the 911 Turbo. They only want rich customers.

Sometimes the record needs to be changed.

Ibrahim5

If you like the current record why change?

QrizB

Moonwolf said:

- A really clever nerdy IFA with no social skills might be better than a charmer who has scraped through his exams, but may be less likely to be recommended.

You are looking for the Michael Burry / Scion Capital of IFAs. And then hold your nerve.

https://en.m.wikipedia.org/wiki/The_Big_Short_(film)