Have you previously spoken to an Independent Financial Adviser (IFA) about your finances and your future plans? If so, you were one of only around 6% of UK adults* who did so in a typical year.
If you wouldn’t consider this, can you say why not?
If you did, I’m curious about what you thought of the experience? Did the effort required to go through your current situation, and your tolerance for risk, turn into something useful? Did you feel they really listened to YOU, or did you feel they were going through a programme to sell you stuff?
Are you still using them?
I’m particularly interested to know what it was that happened in your life to make you choose to seek this professional advice. We all have financial questions and needs but since so few of us turn to IFAs, we put the pressure on ourselves.
Do you have any advice or stories to share?
*figures from Financial Advice Market Review – Baseline Report - FCA 2017
Maybe as a first step, we could start with a poll (anonymous)
Have you had a meeting with an IFA for your personal / household finances in the last 3 years?
I would like to, but I don’t know where to look for a good one, or I should say someone that would suit my needs. And maybe because of that I feel that I’ll be better off on my own.
Although I’d still want to consult one and see if worth it.
Any good website to find one? What are the rates? etc…
Advisers on specific subjects, yes. But not IFAs, as I’ve found them to be way too generalists for my needs (and never really gelled with any of them either)
I’m similar to @ludofarine
I feel it might be beneficial for me, but wouldn’t know how to identify a good one and don’t know what’s considered reasonable rates.
Interesting results so far.
92% of voters have not used an IFA, which matches the national picture pretty accurately.
It also seems to be that for a few of you there is a potential interest in this sort of advice, but there’s a major issue of trust because you don’t know where to start or that the advice will be relevant to YOU.
Is there something that you think would make you change your mind and actually go and seek a solution … like getting a new mortgage, or maybe taking more active control of your pension? Or maybe you feel you can do this on your own?
Started using an independent FA when I retired - 7 years ago- really to get to grips with my pensions and what to do for the best going forward. I did lots of research on the multiple review sites and found a medium sized company who have been in business for donkeys years. They are local and our chap is chartered. Very calm office environment driven by giving good advice and not fees - which are 1% of managed fund value. R-
Oh, thanks so much @Rogerb - so great to hear from someone who has experienced the advice
Do I take it that the trust you had in them was therefore originally in the firm rather than the person - where they’ve been in business for ages so … presumably, can be trusted?
Without revealing any private details, was there any sort of advice that really made the difference or was particularly helpful that they were able to offer? Or is it just that they put in the hard work of research so you don’t have to?
Yes, basically just that. Start with a visit to the business premises and make a judgement about how that feels [sweatshop!] and have a couple of meetings with whoever is going to provide the advice. There should never be any pressure to hurry decisions [been there, done that, got burnt, got compensated]. Where to invest I had to leave to the FA, smoke and mirrors to me, but the logic made sense. Gone a little southward just at present, but it’s a long game. R-
Cheers @Rogerb. I was just thinking, even though I’m at the beginning of my financial journey and I already feel there is a stigma with using IFAs. In other words, I’m a little scared to go to one even though I’m more than certain they know more about finance than I do.
Did you feel this way before going to one?
Absolutely - mainly because of my earlier poor decisions. It is well worth spending time scoping out the marketplace, you are considering making life changing [hopefully positive] choices. R-
Definitely feels like a subject that shouldn’t be rushed. Where would you advise a newbie like me to start looking? Is it something your bank provides?
Just to be clear, I am not connected to Dozens - or any other financial institution. R-
I jsut feel that now with so many online providers such as PensionBee, Nutmeg, Bricklane, you can be in control of that.
To me, the IFA would be helpful in a sense on how to diversify wisely.
I had a brief chat with an IFA (I beleive) through my company, and he was very worried about all those online platforms etc, and told me to back away from that which I didn;t like and thought to be old-school.
Hence me worried now to have a proper IFA who is looking towards the future, not the past…
I didn’t look at the online providers mainly because you need to have some clue about which investments to make. There is also that worry about not following the markets, financial news, blogs, forums, Auntie Mabel’s tea leaf readings and all the other avenues of data closely enough to enable you to sell and buy at the optimum moment. That is where the advisor comes in and, for the money, for me it has proved the best way. R-
I used https://adviserbook.co.uk. Be sure to tick “confirmed independent”. And only go for someone who charges fixed fees for their time, not % of your portfolio.
I used one having found someone who was truly independent, upfront and honest in our first meeting, and only charged fixed fees.
The % fees that most financial advisers charge are likely to significantly or even completely wipe out any investment gains. My IFA and I both recognised this as inherently reprehensible.
My IFA wasn’t in the business of selling me anything, just giving good advice. I already knew pretty much what I wanted to do, and all he really ended up doing was confirming most of my plan and suggesting some specifics and making sure I thought about certain scenarios.
I sought this “double-check” advice because I was going to invest a very large sum of money. Most people are not in that position, and using an IFA for less than a few hundred thousands pounds just wouldn’t be worth the time or money, even if they were charging a reasonable fee.
Those financial advisors that would take on a client investing small quantities are simply unscrupulous, because they would know full-well that their fees would put their client in the negative, yet they take the money anyway.
Don’t see how. A % by definition is less than “everything in the fund” providing you don’t agree to a figure equal to or greater than 100. R-
Wipe out the gains, not the principle. If the investments only gain 1% in the year (quite possible, especially for a conservative investment, or during a bad year), and your IFA charges 1%, you portfolio increases in value by 0% that year.
Right, gotcha! My chap gets 1% of whatever is there when payment is due. So the greater the fund the better his payment. R-