How to choose (/ recommend me) an IFA?
Discussion
Chaps,
Mrs zcacogp and I have had a passing relationship with Towry Law over the last 15-odd years. They have recommended things for us to do and investments to make, and the advice has been free. They have made their fee from the providers of the products.
Now, it seems, there are changes afoot and they no longer do anything for free (why am I not surprised
?) They are, however, recommending that we should use their "Wealth Management Scheme", for which they have a set of charges and some promises that they are good and safe people and very independent, the best in the market and so on and so forth.
It all sounds very plausible and I am tempted (as is Mrs zcacogp), but I am aware that we would be foolish to simply go with the first company offering services - as a point of due diligence we should at least talk to other people offering similar services as well, to ensure that we are making the right decision. (In a sense, we need independent advice on choosing an independent advisor ... ) I have very little knowledge of financial products, and quite a lot of what is talked about needs to be explained to me in fairly elementary terms.
So ... the question. Who does anyone recommend as an IFA, and what criteria should I use when selecting one? What questions should I be asking, what should I be looking for, what are good and bad things to be told?
All help welcomed *! Thanks.
Oli.
Mrs zcacogp and I have had a passing relationship with Towry Law over the last 15-odd years. They have recommended things for us to do and investments to make, and the advice has been free. They have made their fee from the providers of the products.
Now, it seems, there are changes afoot and they no longer do anything for free (why am I not surprised
?) They are, however, recommending that we should use their "Wealth Management Scheme", for which they have a set of charges and some promises that they are good and safe people and very independent, the best in the market and so on and so forth. It all sounds very plausible and I am tempted (as is Mrs zcacogp), but I am aware that we would be foolish to simply go with the first company offering services - as a point of due diligence we should at least talk to other people offering similar services as well, to ensure that we are making the right decision. (In a sense, we need independent advice on choosing an independent advisor ... ) I have very little knowledge of financial products, and quite a lot of what is talked about needs to be explained to me in fairly elementary terms.
So ... the question. Who does anyone recommend as an IFA, and what criteria should I use when selecting one? What questions should I be asking, what should I be looking for, what are good and bad things to be told?
All help welcomed *! Thanks.
Oli.
* - Comments such as "Worst 'I've got lots of money thread ever'" are not welcomed - thanks!
Most IFAs will charge you for an initial consultation - why should they do all the work for you, just for you to say "oh thanks very much, but we're not interested anymore" (sometimes upto 2 days work plus £60 in fuel to visit the client etc). Sadly this is true of so many people, that it has become the norm to charge for intial consultations.
Most will probably charge between £120 and £250 per hour, but ask around your mates to get a recommendation. My father has never advertised in over 10 years yet still gets loads of business through recommendations. You could look on the FSA's website for local ones if you wish - but this is often not your best option.
Most will probably charge between £120 and £250 per hour, but ask around your mates to get a recommendation. My father has never advertised in over 10 years yet still gets loads of business through recommendations. You could look on the FSA's website for local ones if you wish - but this is often not your best option.
Scotal!My 2p's worth. I assume you have a clear outline of what you want to achieve in terms of timescales and risks, so you know what outcomes you are looking for.
IFAs are, in my experience, a mixed bag, so getting a recommendation - or several - is a good first step.
Once you've found one, look at what they say, and run it past your common sense filter at least twice. If the advice passes that, then you are making progress...
IFAs are, in my experience, a mixed bag, so getting a recommendation - or several - is a good first step.
Once you've found one, look at what they say, and run it past your common sense filter at least twice. If the advice passes that, then you are making progress...
I'm right on the cynical end of the scale on this one. So called IFAs make their money by selling you products. Their cut is an up-front deduction which has the effect of severely denting the growth potential of your investment. Virtually all my experiences over the years with professional financial advice has resulted in sub-optimal investments and many years ago I concluded that the only way to find an acceptable path through the maze of financial opportunity is to be well enough informed to make your own decisions.
There's plenty of stuff available on the web. www.fool.co.uk is not a bad resource. http://www.fool.co.uk/Your-Money/guides/the-miracl... is one of their guides which help to explain why up front charges are so damaging. Try joining an investment club and you'll get to meet many other people with an interest in investment and lots of experience, good and bad, for you to draw on.
Best of luck,
Dunstan
There's plenty of stuff available on the web. www.fool.co.uk is not a bad resource. http://www.fool.co.uk/Your-Money/guides/the-miracl... is one of their guides which help to explain why up front charges are so damaging. Try joining an investment club and you'll get to meet many other people with an interest in investment and lots of experience, good and bad, for you to draw on.
Best of luck,
Dunstan
Without naming and shaming, avoid on called E***** J***** like the plague. I had all the dirt on them. Banks on the whole are also not much cop. The trick is to work out what you want, time scale and risk before you talk to someone, then stick to your guns. A good IFA will be paid either via commission (eg, around 3 to 5% on an ISA) or by the hour. The choice is yours as to how you pay. The fool is quite good for getting a general idea about investments, even if it is a bit shot sighted at times (similar outlook to a newspaper). The FT is also good for a look.
[quote]
Without naming and shaming, avoid on called E***** J***** like the plague. I had all the dirt on them. Banks on the whole are also not much cop. The trick is to work out what you want, time scale and risk before you talk to someone, then stick to your guns. A good IFA will be paid either via commission (eg, around 3 to 5% on an ISA) or by the hour. The choice is yours as to how you pay. The fool is quite good for getting a general idea about investments, even if it is a bit shot sighted at times (similar outlook to a newspaper). The FT is also good for a look.
[/quote]
any reason why to avoid (un)said company like the plague?
Without naming and shaming, avoid on called E***** J***** like the plague. I had all the dirt on them. Banks on the whole are also not much cop. The trick is to work out what you want, time scale and risk before you talk to someone, then stick to your guns. A good IFA will be paid either via commission (eg, around 3 to 5% on an ISA) or by the hour. The choice is yours as to how you pay. The fool is quite good for getting a general idea about investments, even if it is a bit shot sighted at times (similar outlook to a newspaper). The FT is also good for a look.
[/quote]
any reason why to avoid (un)said company like the plague?
D4SH][quote said:
Without naming and shaming, avoid on called E***** J***** like the plague. I had all the dirt on them. Banks on the whole are also not much cop. The trick is to work out what you want, time scale and risk before you talk to someone, then stick to your guns. A good IFA will be paid either via commission (eg, around 3 to 5% on an ISA) or by the hour. The choice is yours as to how you pay. The fool is quite good for getting a general idea about investments, even if it is a bit shot sighted at times (similar outlook to a newspaper). The FT is also good for a look.
In my experience , and I work with a few IFA's it tends to be the individual's rather than the firms that are good or bad.
two that imediatly spring to mind as decent , honest fair & reasonable are :
Gareth Cope at Bates Tel. 08450 138 968
Miles Goodworth at Jobson James Tel. 0121 452 8764
Give them a call & have a chat
two that imediatly spring to mind as decent , honest fair & reasonable are :
Gareth Cope at Bates Tel. 08450 138 968
Miles Goodworth at Jobson James Tel. 0121 452 8764
Give them a call & have a chat
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