IFA – Are my expectations too high?
DairyQueen
Posts: 1,822 Forumite
I approached an IFA with a view to a pension review last year. Shortly after an initial chat, OH and I faced a complicated legal situation and I emailed the IFA advising that I would be back in touch when we were less distracted. On the 19th December (a couple of months later) I emailed advising that we were now in a position to proceed. I accepted his quote subject to answering a couple of queries, and detailed my objectives from the process requesting confirmation that the quote would meet them.
I also requested a second meeting (paid for) in late December as OH works away during the week and this would be a rare opportunity for him to participate and to meet the IFA.
I received an OOO reply advising that the IFA was on hols until the new year. Two days later a personal email was sent confirming his holiday plans and that he would be in touch after his return to work. He lives and works in my village.
That was the last contact from him.
Our portfolio is valued at £600k+ and we are reasonably savvy DIY investors. Most of his work would involve reviewing OH’s legacy DCs and recommending if/where to transfer. Also, advising us on how to manage drawdown to optimise tax in the lead-up to, and in the immediate aftermath, of retirement (OH is due to retire in 3 years).
Those were the two main objectives of the review. Quote was £4,200.
Am I unreasonable to expect to have been contacted by now? I actually expected (given that we are new customers with a reasonable-sized portfolio, and given OH’s usual lack of availability) that the IFA would have arranged to meet us on one of the dates I suggested in late December. I know that he has not been away as I have seen him around the village.
I am now pretty miffy and have decided to take our business elsewhere. Before I do, I wanted to check that my expectations were reasonable.
I would welcome the views of anyone who has solicited IFA advice for a pension review and, especially, from the forum’s IFA contributors.
Thanks in advance.
I also requested a second meeting (paid for) in late December as OH works away during the week and this would be a rare opportunity for him to participate and to meet the IFA.
I received an OOO reply advising that the IFA was on hols until the new year. Two days later a personal email was sent confirming his holiday plans and that he would be in touch after his return to work. He lives and works in my village.
That was the last contact from him.
Our portfolio is valued at £600k+ and we are reasonably savvy DIY investors. Most of his work would involve reviewing OH’s legacy DCs and recommending if/where to transfer. Also, advising us on how to manage drawdown to optimise tax in the lead-up to, and in the immediate aftermath, of retirement (OH is due to retire in 3 years).
Those were the two main objectives of the review. Quote was £4,200.
Am I unreasonable to expect to have been contacted by now? I actually expected (given that we are new customers with a reasonable-sized portfolio, and given OH’s usual lack of availability) that the IFA would have arranged to meet us on one of the dates I suggested in late December. I know that he has not been away as I have seen him around the village.
I am now pretty miffy and have decided to take our business elsewhere. Before I do, I wanted to check that my expectations were reasonable.
I would welcome the views of anyone who has solicited IFA advice for a pension review and, especially, from the forum’s IFA contributors.
Thanks in advance.
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Comments
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I can't speak for ifas but as someone who works in a service industry my answer to that is the customers expectations are what's important and should be met or at least managed as far as I'm concerned
I was away frlm the 19th December until the 7th Jan. It was a simple enough thing to contact apologise that I was away for an extended period for a well earned rest and to give a time line for when they could expect to hear from me.
The key as with all things is communication0 -
I personally think it’s very unprofessional and the fee sounds quite high!I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.0
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His lackadaisical approach would really concern me, and I too would walk away.0
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DairyQueen wrote: »I am now pretty miffy and have decided to take our business elsewhere. Before I do, I wanted to check that my expectations were reasonable.
Peoples views on reasonableness differ. If time is of the essence then find another IFA. Little point trying to second guess what work / meetings the IFA had already planned for his return to work in January.0 -
I would consider doing this yourself. You seem quite savvy and reviewing DC pensions is pretty easy. I was able to make sense of all the potential issues around a with profits scheme transfer just by doing reading and speaking with the pension provider (and reading stuff on MSE). Transferring is straightforward if you decide to go ahead.DairyQueen wrote: »Our portfolio is valued at £600k+ and we are reasonably savvy DIY investors. Most of his work would involve reviewing OH’s legacy DCs and recommending if/where to transfer. Also, advising us on how to manage drawdown to optimise tax in the lead-up to, and in the immediate aftermath, of retirement (OH is due to retire in 3 years).
Those were the two main objectives of the review. Quote was £4,200.
As for drawdown strategy, it's not that complicated IMO as there aren't that may options to choose from. Take a look at the thread on cash buffers in drawdown if you haven't already, there's lots of interesting stuff in that.
Tax is the only area where specialist advice may be needed, but IMO unless you have complex tax affairs (like limited companies, trying to avoid IHT etc) it's not that complex.
I guess maybe the IFA may not be that interested in a one-off job. From your posts on here you seem to be pretty knowledgeable and if I was able to manage all of this myself, I would imagine you could as well.....;)0 -
Yes, I think it is unreasonable to expect him to cancel his leave to meet with you, particularly over the Christmas/New Year period. Whether he is overseas or just relaxing at home is irrelevant, he is still entitled to a break from work.0
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OldMusicGuy wrote: »I would consider doing this yourself. You seem quite savvy and reviewing DC pensions is pretty easy. I was able to make sense of all the potential issues around a with profits scheme transfer just by doing reading and speaking with the pension provider (and reading stuff on MSE). Transferring is straightforward if you decide to go ahead.
As for drawdown strategy, it's not that complicated IMO as there aren't that may options to choose from. Take a look at the thread on cash buffers in drawdown if you haven't already, there's lots of interesting stuff in that.
Tax is the only area where specialist advice may be needed, but IMO unless you have complex tax affairs (like limited companies, trying to avoid IHT etc) it's not that complex.
I guess maybe the IFA may not be that interested in a one-off job. From your posts on here you seem to be pretty knowledgeable and if I was able to manage all of this myself, I would imagine you could as well.....;)
Thanks for all of the replies; it's always helpful to hear the diverse views of this forum's members.
OMG: Your post prompted both a smile and a pause for thought.
Coincidently, this p.m. I finished reading your recommendation on drawdown (Living Off Your Money by McClung). I also downloaded the spreadsheet and have just begun trying it out.
Thanks for the vote of confidence. I think that self-doubt may be the real driver for approaching an IFA. I already had a few ideas about the old DCs, and have researched drawdown strategies, but wanted to compare against the views of an experienced professional.
The delay in the IFA's follow-up may be a blessing in disguise as I am now enthusiastically investigating McClung's strategy and implementation plan. At first look it seems pretty close to what I have been seeking although it may need some tweaking for a UK investor.
The tax issues are made more complex courtesy of income/divis from a limited company, plus OH is pushing toward the LTA. Even so, I think with a little more time and research I should be able to work through the various options.
Have you adopted McClough's strategy? I am considering running a trial over the next couple of years to see how the plan could work for us in practice, and would be very interested in comparing notes with UK practitioners.0 -
Thrugelmir wrote: »Peoples views on reasonableness differ. If time is of the essence then find another IFA. Little point trying to second guess what work / meetings the IFA had already planned for his return to work in January.
Not clear whether he set any expectations on the date he would respond.
If he didn’t: that is poor for someone in that role.
If he did, but hasn’t responded a week beyond: also poor.
If neither of the above.....maybe he takes a month off!
On the topic of cost: you mention 600k, but also mention OH pushing LTA: if the 600k is in addition to the pension pushing the LTO, £4K sounds quite a bargain?
I’ve failed to really drill down into IFAs, despite felling I could do with a validation of how we are going.....maybe this year...or maybe I will keep learning more myself as I tweak things!
Not heard of McThingy....Plan for tomorrow, enjoy today!0 -
DairyQueen wrote: »
I received an OOO reply advising that the IFA was on hols until the new year. Two days later a personal email was sent confirming his holiday plans and that he would be in touch after his return to work. He lives and works in my village.
That was the last contact from him.
Am I unreasonable to expect to have been contacted by now? I actually expected (given that we are new customers with a reasonable-sized portfolio, and given OH’s usual lack of availability) that the IFA would have arranged to meet us on one of the dates I suggested in late December. I know that he has not been away as I have seen him around the village.
Pretty unreasonable, yes. He may well only be returning to the office this coming week, so perhaps find out the state of play rather than throwing a tantrum because he couldn't read your mind and know that you expected him to break his holiday because your OH wasn't very available.
Sounds as if the IFA has had a lucky escape from an over-demanding client!Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Sounds as if you've already made your decision, so the views of strangers won't change how you feel. Looked at objectively, you do seem to be expecting the IFA to jump to it the moment you are ready to go. Expecting him to change his holiday plans just because your husband happens to be around at a particular time seems pretty unreasonable. The fact he 'wasn't away' doesn't mean he was at work.
Quote of £4,200 is for two people, so £2,100 each looks entirely reasonable.0
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