Financial Advisor advice

artyboy

Marlax said:

So, I'm sensing a theme here - consensus seems to be avoid IFAs and DIY it?

Many on here would suggest that you take a certain poster's views on IFAs with a mountain of salt, due to their single threaded vitriolic campaign, based on their own bad experience. 

I'm one of a few that don't have this poster on 'ignore', simply because I feel that they need calling out from time to time...

Marlax

Moonwolf said:

If you want to learn more, as well as asking here, many of us watch Jame Shack videos on YouTube. 

Unlike other financial “influencers” he seems to know what he is talking about and explains why he says things, which is very helpful in deciding if you like a particular bit of advice. For example, I couldn’t bring myself to plan for a 10% reduction in income at 75. Look first at the “Can I afford to retire” video.

Edit: Also he gives you a good idea of what an IFA might be able to do for you.

Thanks for the recommendation - I've been watching some of DamienTalksMoney and PensionCraft, which have been pretty good.

Just had a look at JamesShack - has anyone used his Nova service?

dunstonh

Just had a look at JamesShack - has anyone used his Nova service?

He is a YouTuber who is also an FA.        It appears that they are not independent (no reference to independence is made on their website and they are missing at least one permission that an IFA would be expected to have but are more typical of FAs - in respect of annuities).

Somebody

Marlax said:

Just had a look at JamesShack - has anyone used his Nova service?

A friend filled out their enquiry form.  Apparently they don't do one off reviews; need to buy into their investment services. 

Ibrahim5

Somebody said:

Marlax said:

Just had a look at JamesShack - has anyone used his Nova service?

A friend filled out their enquiry form.  Apparently they don't do one off reviews; need to buy into their investment services. 

It's basically the same for all advisers whether independent or not. If you have a £1m pot the average ongoing fee is £8k after an initial fee of £24k. It's the ongoing fees that the advisor wants. £8k for doing very little every year. Once you have 100 customers all paying £8k for doing very little you have a business generating £800k a year for doing very little. You can then sell your business for a small fortune and retire yourself. Advisers really don't want to give one-off advice.

Bostonerimus1

Ibrahim5 said:

Somebody said:

Marlax said:

Just had a look at JamesShack - has anyone used his Nova service?

A friend filled out their enquiry form.  Apparently they don't do one off reviews; need to buy into their investment services. 

It's basically the same for all advisers whether independent or not. If you have a £1m pot the average ongoing fee is £8k after an initial fee of £24k. It's the ongoing fees that the advisor wants. £8k for doing very little every year. Once you have 100 customers all paying £8k for doing very little you have a business generating £800k a year for doing very little. You can then sell your business for a small fortune and retire yourself. Advisers really don't want to give one-off advice.

I tend to agree with the part that many IFAs are just ticking boxes as most clients will be pretty similar. They farm out the portfolio design and management and then just give some pretty basic advice on taxes and suitable middle-class financial strategies. Of course there's a spectrum in this and some IFAs will be useful for some people with particular needs. There is a staggering lack of financial knowledge so I see why many people run into the arms of a "professional".