Does anyone here use an IFA?

Barkin

Aminatidi said:

Interestingly I was messing around with ChatGPT and throwing in some of the questions/scenarios I've been considering.

I'm blown away how even the free version seems to come out pretty much in line with almost any "collective wisdom" I can find after hours of reading different articles.

Given how ChatGPT gets it's 'knowledge', is that really a surprise?

Eyeful

You still need to use your brain and common sense when using ai chatbots.
Especially where money is involved.

Example:
Yesterday an ai chatbot told me that Debbie Reynolds was in the film, 7 brides for 7 brothers,  after I  pointed out its mistake, it could not tell me how or why the mistake was made.

m_c_s

ChatGPT is an excellent resource but you have to ask the correct questions. 
Contrary to what someone has posted above there isn't a US bias; for many situations that's nonsense if you ask the right question.
Also there is no "fashion bias", it seems to be very reasonable in the sources it selects to answer focused questions. 
"Construct a retirement portfolio for a UK retiree?"
This is the output from that very simple question, you can that ask further equations to fine tune the output for different risk profiles, income or accumulation etc:

---

🏦 Example Portfolio

(Percentages are target allocations — you can adjust based on your risk comfort)

1. Bonds & Gilts – 55%

Purpose: Stability, income, and reduced volatility.

• 30% UK Gilts (medium duration)

  e.g. iShares Core UK Gilts ETF (IGLT) – low cost, high liquidity.

• 15% Global Government Bonds (hedged to GBP)

  e.g. Vanguard Global Bond Index GBP Hedged (VAGP) – diversifies away from UK-only risk.

• 10% Short-Duration Bonds / Gilt ETF

  e.g. iShares UK Gilts 0-5yr ETF (IGLS) – reduces interest rate sensitivity.

---

2. Equities – 35%

Purpose: Inflation-beating growth and some dividend income.

• 20% Global Developed Markets Equity ETF

  e.g. Vanguard FTSE Developed World UCITS (VEVE) – broad, low-cost, GBP-based.

• 10% UK Equity Income ETF

  e.g. iShares UK Dividend UCITS ETF (IUKD) – higher dividend yields.

• 5% Global Infrastructure / Utilities ETF

  e.g. SPDR Morningstar Multi-Asset Global Infrastructure (GINF) – stable cash flows, inflation-linked revenues.

---

3. Alternatives & Inflation Protection – 10%

Purpose: Cushion against stock/bond downturns, hedge inflation.

• 5% Global REIT ETF

  e.g. iShares Global Property Securities (IWDP) – diversifies income sources.

• 5% Gold ETF

  e.g. iShares Physical Gold (SGLN) – safe-haven hedge.

gravel_2

I was recently playing with ChatGPT to see what it said about certain ETFs/bundling different ETFs together. I offered it two similar ETFs (same index, both Acc, different providers) and it told me the main difference was one was Acc and one was Inc. I non-specifically pointed out to it that this was incorrect. It apologised, thanked me profusely for the correction, then proceeded to tell me the one I corrected it on was Acc and the one it original said was Acc was actually Inc.

I ended the chat.

m_c_s

gravel_2 said:

I was recently playing with ChatGPT to see what it said about certain ETFs/bundling different ETFs together. I offered it two similar ETFs (same index, both Acc, different providers) and it told me the main difference was one was Acc and one was Inc. I non-specifically pointed out to it that this was incorrect. It apologised, thanked me profusely for the correction, then proceeded to tell me the one I corrected it on was Acc and the one it original said was Acc was actually Inc.

I ended the chat.

Just asked ChatGPT:
"Compare the two ETFs VWRP and IWDG?"

Vanguard FTSE All-World UCITS ETF (USD) Acc – 

VWRP

• Index Tracked: FTSE All-World Index – covering both developed and emerging markets globally  .

• Domicile & Structure: UCITS ETF domiciled in Ireland, listed mainly on the London Stock Exchange under ticker VWRP, trading in GBP (accumulating version, reinvesting dividends)  .

• Expense Ratio (TER): Approximately 0.22% per annum  .

• Distribution Policy: Accumulating—dividends are automatically reinvested, increasing NAV rather than paying out cash  .

---

iShares Core MSCI World UCITS ETF – 

IWDG

• Index Tracked: MSCI World Index – covering large and mid-cap companies across developed markets only (no emerging markets)  .

• Issuer & Hedging: Issued by iShares (BlackRock), this is the GBP-hedged share class (as indicated by “H” and “GBP DIS H” for distributing)  .

• Expense Ratio (TER): Around 0.30%  .

• Distribution Policy: Distributing — pays out dividends quarterly in GBP  .

---

Side-by-Side Summary

Feature	VWRP (Vanguard)	IWDG (iShares)
Geographic Exposure	Global (Dev + Emerging)	Developed Markets Only
Dividend Treatment	Accumulating (reinvested)	Distributing (paid quarterly)
Currency Hedging	Unhedged	GBP Hedged
Expense Ratio	~0.22%	~0.30%
Use Case Fit	Long-term growth, global reach	Income generation, currency stability

Choosing Between Them

• Go for VWRP if you want truly global coverage—including emerging markets—with a low cost and prefer reinvestment of dividends (ideal for compounding and long-term growth).

• Go for IWDG if you prefer a developed-markets-only approach with dividends paid out regularly in GBP, and you appreciate the reduced currency risk thanks to GBP hedging.

Ibrahim5

This thread seems to have lost it's direction.

elsien

Wonder why that is .

Albermarle

etienneg said:

OK. Thanks to all who responded to my post above. As is often the case, terminology can cause problems and I think this answers a major part of my query. I was taking "increase returns" to mean "leave the investor with more money" - that is, taking into account his/her situation, taxation, and so on. I see that others are using it in a much more restricted sense, just meaning "returns on an investment". My use may well have been wrong. In the end it doesn't matter; what does matter is that I now have a clearer understanding, so thanks.

Conclusion: If an investor wants (or needs) the bigger picture to be covered, an IFA may well be the way to go. However, if s/he knows sufficient of the rules and regulations surrounding tax and investment vehicles, and just seeks help with choice (an "investment advisor"), then an IFA is not a good choice and his/her fee may well end up reducing the overall return to the investor.

To get the thread back on track !

As mentioned already, IFA's often 'farm out' investment portfolio management to a DFM ( Discretionary Fund Manager) , the cost of which is passed onto the client ( in theory the IFA should reduce their charges according but many seem not to) .
The charge used to be something like 0.25%? but it has been mentioned on this forum that this charge is generally reducing.
I think ( not 100% sure ) that at least some DFM's will deal direct with the public, rather than via an IFA. 
If so, this could be an alternative solution ?

boingy

I asked ChatGPT whether I should trust it:

You should treat ChatGPT kind of like a very clever, very fast friend who’s usually right, but isn’t infallible.

That means:

• Check facts — especially if the answer affects money, health, safety, or serious decisions.

• Cross-reference — if it’s something important, look for multiple reliable sources.

• Be aware of limits — I can misunderstand subtle wording, lack the latest info unless I search, or miscalculate if not careful.

• Use it for ideas and reasoning — I’m great at explaining concepts, brainstorming, and helping with problem solving, but I’m not a replacement for professional judgment.

Basically: trust me to help you think, but not to think for you.

Would you like me to also give you a quick guide on spotting when my answers might be wrong?

Bostonerimus1

I'm going to say something radical for me: I'd rather get financial advice from an IFA than Chat GPT etc.