IFAs - Will they all try to do this?
Discussion
I contacted a large IFA firm earlier in the summer as I'd watched a lot of their videos on YouTube and liked the style. I won't name them, but I'm not shaming them either.
They offer initial free advice which we've worked through. The 'Advice Summary' was basically to transfer all my ISAs (S&S and cash) as well a a smallish SIPP to them for them to control. This entails an initial fee of almost £5k, then c. £600 annually. Even though I've gone through several weeks of sharing data with them. there were mistakes in the details presented, and felt very biased towards a single solution. There was no answer to my questions about how they could demonstrate the fees would be a good investment in themselves.
This wasn't the advice I'd asked for - I'd wanted to see a lifetime 'cashflow plan' to understand whether my rough plan worked. When I raised this, we spent maybe 15 minutes at the end of the session going through this, but I'd wanted to see some 'stress testing' which wasn't offered. I don't think this was going to form part of the meeting at all if I hadn't raised it.
Maybe I've just gone to the wrong company, but I came out of it feeling that it was a bit of a waste of time, if luckily not a waste of money. I'm happy to pay for advice, but I want to feel that my needs are put to the fore, and my concerns are answered rather than feeling like all they want is to take control of everything.
Not sure what to do next. Are all IFAs going to come up with the same 'we'll take control' advice?
They offer initial free advice which we've worked through. The 'Advice Summary' was basically to transfer all my ISAs (S&S and cash) as well a a smallish SIPP to them for them to control. This entails an initial fee of almost £5k, then c. £600 annually. Even though I've gone through several weeks of sharing data with them. there were mistakes in the details presented, and felt very biased towards a single solution. There was no answer to my questions about how they could demonstrate the fees would be a good investment in themselves.
This wasn't the advice I'd asked for - I'd wanted to see a lifetime 'cashflow plan' to understand whether my rough plan worked. When I raised this, we spent maybe 15 minutes at the end of the session going through this, but I'd wanted to see some 'stress testing' which wasn't offered. I don't think this was going to form part of the meeting at all if I hadn't raised it.
Maybe I've just gone to the wrong company, but I came out of it feeling that it was a bit of a waste of time, if luckily not a waste of money. I'm happy to pay for advice, but I want to feel that my needs are put to the fore, and my concerns are answered rather than feeling like all they want is to take control of everything.
Not sure what to do next. Are all IFAs going to come up with the same 'we'll take control' advice?
I have spoken to three 'IFAs' and they all wanted to do similar. I'm finding many of the solo IFAs are not really independent, they are allied to an umbrella group, I can understand this as it gives them better tools and some support and insurance etc. But there is a cost. And are they really independent?
I like running may own finances and just want some pointers and advice, part of my investment strategy has been keeping costs and fees low, not paying expensive fees. However I would be happy to pay a fee for real independant advice which allows me to keep control over my investments and what platform I choose to use. .
I like running may own finances and just want some pointers and advice, part of my investment strategy has been keeping costs and fees low, not paying expensive fees. However I would be happy to pay a fee for real independant advice which allows me to keep control over my investments and what platform I choose to use. .
Suspect not all like that, but don't know how I'd go about finding one that isn't aside from a personal recommendation. They make their money from fees on funds managed (more money, every year), not advice given (once) so it'll probably be hard to find one who is happy to give you advice but doesn't want to manage your money. What are you trying to achieve with the IFA?
Countdown said:
Call me cynical but I'm always suspicious when I see things like "Free Initial advice". It's usually a hook to generate business.
I was as well, but thought I'd give them a try...I think my plan works, but I want to be sure, and understand the most tax efficient way of doing things. I was looking for a Financial Advisor, not a fund manager.
Same here, I'm just on the brink of drawing down my SIPP, I've done all the chats with pension wise and my current platform managers, just need to pull the trigger, I'm pretty sure I have everything in place BUT, I would like to talk to someone really independent first, happy to pay for the advice .
AyBee said:
Suspect not all like that, but don't know how I'd go about finding one that isn't aside from a personal recommendation. They make their money from fees on funds managed (more money, every year), not advice given (once) so it'll probably be hard to find one who is happy to give you advice but doesn't want to manage your money. What are you trying to achieve with the IFA?
Maybe you're right. What I am looking for is for me to say 'this is what I have', and 'this is what I need / want it to deliver', and to get an answer. I want to understand the most tax efficient way of doing things, and potentially get advice about the shares and funds I hold.
What I got was advice to transfer everything to them. This comes at a big cost and I didn't get an answer of why that was a price worth paying.
The performance comparison they included showed that my current ISA (A) had done rather better than their Growth (B), Balanced (D) or Cautious (E) portfolios.
C is an older S&S ISA that was a mortgage repayment vehicle that I didn't need to use when I paid it off (and I'm about to transfer into my main S&S ISA) and F is my Cash ISA.
megaphone said:
Same here, I'm just on the brink of drawing down my SIPP, I've done all the chats with pension wise and my current platform managers, just need to pull the trigger, I'm pretty sure I have everything in place BUT, I would like to talk to someone really independent first, happy to pay for the advice .
Yep, sounds like a very similar scenario. Let me know if you find an answer!been though similar recently, the first issue was getting an IFA to call back in the first place then having actually manged to have a meeting with one to go through everything there was a two week wait for the second meeting to allow them to put an outline plan. That second meeting was basically a boilerplate presentation, ignoring specific instructions they had been given (to treat mine and my wife finances as completely independent, provide a view on taking a lump sum vs not taking a lump sum etc) and a request for £7.5k to have some more meetings where they take the information they had already been given and produce a cashflow forecast.
The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
simon_harris said:
been though similar recently, the first issue was getting an IFA to call back in the first place then having actually manged to have a meeting with one to go through everything there was a two week wait for the second meeting to allow them to put an outline plan. That second meeting was basically a boilerplate presentation, ignoring specific instructions they had been given (to treat mine and my wife finances as completely independent, provide a view on taking a lump sum vs not taking a lump sum etc) and a request for £7.5k to have some more meetings where they take the information they had already been given and produce a cashflow forecast.
The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I think you may have used the same company! Or maybe that is the norm. The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I've been thinking I'd like to see a financial planner to make sure I'm on the right path, but everything I hear suggests much like the above, they'll want to 'help' me with it.
Honestly, for my level and just doing forecast calculations, just use AI. It can go wrong and spout utter nonsense but I do like I can throw scenario after scenario at it, it never tires or becomes bored or take days to reply.
I think at one point I will need to take a proper steer but as someone who takes an interest in their personal finances I struggle to see what they can really add. I feel I'd get as much feedback on here as I would from a paid advisor. I'm 99% confident in my plans, I just need a smart person to give me the nod and say keep doing what you're doing or you're missing a trick, just tweak this.
Honestly, for my level and just doing forecast calculations, just use AI. It can go wrong and spout utter nonsense but I do like I can throw scenario after scenario at it, it never tires or becomes bored or take days to reply.
I think at one point I will need to take a proper steer but as someone who takes an interest in their personal finances I struggle to see what they can really add. I feel I'd get as much feedback on here as I would from a paid advisor. I'm 99% confident in my plans, I just need a smart person to give me the nod and say keep doing what you're doing or you're missing a trick, just tweak this.
I'm fairly well placed to look after my SIPPs etc myself....for now but not too sure as I get older. Tried to transfer both SIPPs to Royal London but they insist on an IFA . I asked why as this seems to be an unnecessary recurring large cost and they just shrugged!.
Really odd as I have pension/s (DB and DC) dont need advice but they seem to think I do..
Really odd as I have pension/s (DB and DC) dont need advice but they seem to think I do..
Uneducated semi retiree here. I have been looking at pension fund returns and fund options for years and years.
I have looked at independent advice options several times. On each occasion the initial fee was about £5k so no chance am I paying that without hard proof of how they have successfully produced better investment returns for clients. None of them have ever been able or willing to discuss such proof.
Personally I have bumped along returning roughly the market average by just picking well known funds with low fees. No science, no knowledge. I did at one time use the Fidelity analysis tools to look at my pension funds global spread etc but didn't make much out of it. Market average will do me. If an IFA had genuinely guided clients to achieve significantly above average returns then I would bet they would be shouting about it.
My probably misplaced thinking is that if many many fund managers themselves who are hugely paid brilliantly intelligent people cannot often beat simple tracker funds then why would Joe Average IFA be better than the market average at picking funds.
I have looked at independent advice options several times. On each occasion the initial fee was about £5k so no chance am I paying that without hard proof of how they have successfully produced better investment returns for clients. None of them have ever been able or willing to discuss such proof.
Personally I have bumped along returning roughly the market average by just picking well known funds with low fees. No science, no knowledge. I did at one time use the Fidelity analysis tools to look at my pension funds global spread etc but didn't make much out of it. Market average will do me. If an IFA had genuinely guided clients to achieve significantly above average returns then I would bet they would be shouting about it.
My probably misplaced thinking is that if many many fund managers themselves who are hugely paid brilliantly intelligent people cannot often beat simple tracker funds then why would Joe Average IFA be better than the market average at picking funds.
simon_harris said:
The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I suppose someone taking care of everything is pretty well the point of it.they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I didn’t bother while working (although in hindsight it might have helped) but on retirement we had SIPPs, ISAs, GIA and quite chunky amounts in cash savings. As well as old and small DB pensions. It would have been a nightmare for my wife if anything happened to me.
An IFA pulled it all together and now, if I croak, she doesn’t have any concern.
I don’t know how an IFA could just advise on part of someone’s financial life - they surely need to look at the whole picture?
1690cc said:
Uneducated semi retiree here. I have been looking at pension fund returns and fund options for years and years.
I have looked at independent advice options several times. On each occasion the initial fee was about £5k so no chance am I paying that without hard proof of how they have successfully produced better investment returns for clients. None of them have ever been able or willing to discuss such proof.
….
They won’t be able to do that because that isn’t what an IFA does.I have looked at independent advice options several times. On each occasion the initial fee was about £5k so no chance am I paying that without hard proof of how they have successfully produced better investment returns for clients. None of them have ever been able or willing to discuss such proof.
….
Sheepshanks said:
simon_harris said:
The kicker was then that we would also need to transfer everything in to their control/funds for which there would also be an ongoing charge.
they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I suppose someone taking care of everything is pretty well the point of it.they seemed surprised to be asked to demonstrate where the value was in the service, and utterly unable to do so beyond we know what we are doing and have done it for lots of people.
I didn t bother while working (although in hindsight it might have helped) but on retirement we had SIPPs, ISAs, GIA and quite chunky amounts in cash savings. As well as old and small DB pensions. It would have been a nightmare for my wife if anything happened to me.
An IFA pulled it all together and now, if I croak, she doesn t have any concern.
I don t know how an IFA could just advise on part of someone s financial life - they surely need to look at the whole picture?
Gassing Station | Finance | Top of Page | What's New | My Stuff