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".

RogerPensionGuy

A slight view/question comes to my head on this thread.

Using an IFA/FA to manage a portfolio, is it possible an IFA/FA will be unlikely to suggest annuities as after the one off commission or fee they don't get an ongoing % fee for that product? 

Marlax

I think I'm looking for advice/opinion on how to structure my retirement plan, given what I have, to make sure I'm not unnecessarily paying more tax than I should or to optimise how I use it. All the things they keep saying in the clickbait social media ads about 'dont make these 5 mistakes' or 'you could retire 5 years earlier if you structure your finances like this'. I keep getting emails from MoneyCoachJoe who says he's helped 100s of people 'just like me' to 'cut 10-20 years off their retirement age' and he doesn't want me to miss out (such a caring guy! 😄). Like you I'm cynical about these things especially when they do such obvious hard sell (50% off but only for the next 4hrs!) - but then again, am I missing something optimisation areas?

Cobbler_tone

Marlax said:

 about 'dont make these 5 mistakes' or 'you could retire 5 years earlier if you structure your finances like this'. 

I work with A LOT of people who fall into this category. They don't need a financial advisor, they need to log into their pensions, share accounts and take a look at their financial position. They would soon realise they could be sitting at home.
I have a couple virtually on their knees, who think you work until your state pension age because that's what you do.
Having said that, maybe they do need a financial advisor as planning beyond your next pay cheque can seem like wizardry to some. I have no idea how they have navigated their way through life.

One guy is quite funny. Mid-sixties, absolutely minted and only comes to work to avoid becoming "a babysitter for the grandkids" and is moving away when he retires.
Then I look at my parents. Very working class, very comfortable and wouldn't have been near an advisor or done anything beyond basic saving accounts. I guess you can argue that you can always be even better off but if you have 'won the game' does it really matter?
On the flip side I think some people struggle with FOMO if they DON'T use an advisor.

QrizB

Cobbler_tone said:

On the flip side I think some people struggle with FOMO if they DON'T use an advisor.

A decade or so ago I was working with a guy who had an advisor who had invested him in a scheme that (supposedly) guaranteed >10% pa growth (it might even have been 15%). He couldn't explain how the scheme worked or what it was invested in but he had complete faith in his advisor - who happened to have the same name as a famous Welsh singer, so the anecdote stuck in my mind.

He was a few years older than me and has probably retired by now. I do sometimes wonder how it worked out for him.

So yes, FOMO might be a problem. You could even say it's not unusual ...