Choosing an IFA, advice welcome!

lostinrates

This could equally have gone in the retirement planning etc forum I guess.

DH and I have been meaning to get some serious finanicial planning advice for a while, but its been 'one of those things on the list' and I am now taking it in hand.

Having read Martin's guide to Pickand and Paying for and IFA I followed the link to unbiased.co.uk which gave four choices within a 12 miles radius.

The first has no website. I am slightly put off by that, but perhaps erroneously?

The second has a link to a website which turns out to be something to do with aesthetic surgery, I need that I guess, but less than financial planning advice!:rotfl:

The third has charges of £500 plus VAT one off and £70plus VAT monthly if we go the fee route (which I guess is preferable). I'm not sure whether one off or continued service is more appropriate for us. Our lifestyle is in the process of changing and will be for the next few years (recent qualifications and employment for him, possible attemp at starting family for us, hope to buy house in near future, I might want to become self mployed etc etc) we are both 29. We fit into this companies description of their clients quite well. I suppose I'm asking if this is a good price in today's market!

The fourth, incidently, has a website but its links to emails don't work and when I sent an email 'manually' it bounced back. This I find even more off putting than no website. Email is my main means of communication and so I would want anyone helping us manage finance to be easily emailable!:o


Alternatively I would certainly consider travelling further afield to get great advice. I really think face to face meeting are important though. DH works in London, but I thouht fees might be lower in the SW where we currently live. Is this likely?

dunstonh

The first has no website. I am slightly put off by that, but perhaps erroneously?

Certainly not a good reason for not picking an IFA. I dont have a website anymore and I only know one of the local firms that does. I saw it as a complete waste of money and preferred to spend it on more important software.

The third has charges of £500 plus VAT one off and £70plus VAT monthly if we go the fee route

Some firms have that style of charging and it can suit some people. There are other ways of doing this. i.e. using natural trail commission/renewals to pay for servicing.

DH works in London, but I thouht fees might be lower in the SW where we currently live. Is this likely?

Yes. City firms tend to be more expensive. Mainly due to more expensive offices and for many a focus on higher net worth clients where charges may be cheaper for them but appear expensive for lower net worth individuals.

Fee based is typically cheaper than full commission in most areas. The hybrid option of agreeing a fee but having it paid out of the commission (with any extra being used to improve product terms) is often a good way of doing it. Especially on pensions where you effectively get tax relief on the fee.

lostinrates

I didn't know that some fees might be eligable for tax relief! Thank you. Presumably the IFA, is well placed to advise which of their fee structures is best for us in the long term?

Well, I'll contact the no website guy and see how his fees compare. We are liekly to need advice again, even if we go for the one off option, but I think having a sense of trust, and if possible, like!, is as important as minor diferences in fees (but maybe that's why I'm not rich yet!)

dunstonh

Presumably the IFA, is well placed to advise which of their fee structures is best for us in the long term?

The good ones will. Some will have variable models to suit the individual needs. Others will have a fixed model which may or may not suit and wont alter it.

Former_MSE_Wendy

Hi folks

You can search on unbiased.co.uk excluding IFAs that don’t have websites by ticking question 2 (display only IFAs that have website and email links).

Also, lostinrates, if you want to let us know (either here or by sending me a PM) where you are searching we will pass this on to unbaised to get the websites links fixed.

Thanks

Wendy

dunstonh

Be wary of using the option that defaults to "on"
2. Tick this box if you would like to display only IFAs that have website and email links (optional)

You will eliminate the majority of IFAs as to have that option the IFA has to pay IFA promotions and most do not. This is a recent change and one done to almost force IFAs in to having to join the paid version of the website.