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[Finance] Are IFA’s a waste of money for most people ?



Live by the sea

Live by the sea

Well-known member
Oct 21, 2016
4,718
Seems to me , if you need complicated tax advice you would go to an accountant.

If you simply want to invest in equities then it is very easy today to invest directly with fund managers or in tracker funds online. Why would you pay 2-4% charges per year to have an IFA invest your money in the same funds you can do yourself directly .

There is so much free advice regarding best practice for finances like diversity and understanding your attitude to risk etc , are IFA’s in danger of becoming an unnecessary expense for most people ?
 








beorhthelm

beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,312
with the internet and extensive access to funds through online brokers, i dont see much point. suppose there must be a cohort that earn enough to have surplus to invest but dont have the time/inclination to do it themselves online.
 






Live by the sea

Live by the sea

Well-known member
Oct 21, 2016
4,718
I appreciate that , I was referring to the fortunate people that do have spare money to invest .
 


Driver8

Driver8

On the road...
NSC Patron
Jul 31, 2005
15,982
North Wales
Live by the sea said:
Seems to me , if you need complicated tax advice you would go to an accountant.

If you simply want to invest in equities then it is very easy today to invest directly with fund managers or in tracker funds online. Why would you pay 2-4% charges per year to have an IFA invest your money in the same funds you can do yourself directly .

There is so much free advice regarding best practice for finances like diversity and understanding your attitude to risk etc , are IFA’s in danger of becoming an unnecessary expense for most people ?
Click to expand...

A proper IFA does a bit more than chose funds, it’s all about helping people meet their objectives. That could be retiring at a certain age or mitigating Inheritance Tax for example. Most will charge 0.5% or 1% p.a. depending on the service required.

Research has shown those that take advice are better off financially as a result.

I have come across many clients who have got themselves in a right mess as a result of trying to do things themselves.
 






Stat Brother

Stat Brother

Well-known member
NSC Patron
Jul 11, 2003
73,735
West west west Sussex
Am I conflating a few posters or does the OP talk a lot, and I mean a lot, about money?
 




WATFORD zero

WATFORD zero

Well-known member
NSC Patron
Jul 10, 2003
25,864
I invest some small amounts of money directly as a bit of a hobby, like betting on the horses or dogs, going to the casino or cryptocurrency, it's really just entertainment. I also employ an IFA to manage my investments and, even after fees, he outperforms me every single time.

I also used to play football on a Sunday morning and despite having the exact same football boots, John Barnes consistently outperformed me by a significant amount (as some on here will happily testify). I always used to put it down to the fact that he was a trained professional with years of experience and simply having the same tools wasn't enough, but now you've got me wondering. ???
 




Live by the sea

Live by the sea

Well-known member
Oct 21, 2016
4,718
From a young age I was taught not to be embarrassed talking about money , it’s fairly normal in the States , especially in the big cities .
 


Live by the sea

Live by the sea

Well-known member
Oct 21, 2016
4,718
WATFORD zero said:
I invest some small amounts of money directly as a bit of a hobby, like betting on the horses or dogs, going to the casino or cryptocurrency, it's really just entertainment. I also employ an IFA to manage my investments and, even after fees, he outperforms me every single time.

I also used to play football on a Sunday morning and despite having the exact same football boots, John Barnes consistently outperformed me by a significant amount (as some on here will happily testify). I always used to put it down to the fact that he was a trained professional with years of experience and simply having the same tools wasn't enough, but now you've got me wondering. ???
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I see where you are going but are IFA’s equities specialists ? not to my knowledge, they just look at the graphs like everyone else and plonk your funds usually in a managed fund . You can do that yourself .
 


WATFORD zero

WATFORD zero

Well-known member
NSC Patron
Jul 10, 2003
25,864
Stat Brother said:
Am I conflating a few posters or does the OP talk a lot, and I mean a lot, about money?
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No you're not, and yes he does.

WATFORD zero said:
Live by the sea said:
If you want to see plenty of 20 something tacky girls with fake eyelashes , silicon chests , collagen puffed lips and tattooed on eyeliner then Monoco is the place to go . What makes this place different is you will see them as companions for men in their 60’s. Obviously all the men at 60 plus are wealthy .
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Why do the so many of your posts make reference to money/wealth ? It really does show a complete lack of class.
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Although possibly not so much on his other 4 accounts :dunce:

Guinness Boy said:
Live by the sea said:
Pictures today of a gang of around 25 young teenagers attacking a bmw in the middle of 5th Ave New York.

Could only see about 5 faces , all looked like young black teenagers dressed in sports wear .

The BMW had a family inside and the mob were throwing their bikes at the car trying to break the windows . The car was in the middle of the road and doesn’t look like it was involved in any accident at all with any of the bike riders .

Must have been horrendous for the family inside . Read reports of lots of horrific stuff in areas like the bronx but never in central Manhattan- makes me feel very sad for my city .
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Why don't you start a poll over who was to blame and use all your four accounts to tick the box you want to win?
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Not Andy Naylor

Not Andy Naylor

Well-known member
Dec 12, 2007
8,798
Seven Dials
I can't speak for anyone else, but our former Prudential man has been our IFA for a long time now and he's been nothing but brilliant. Financial services bore me rigid, but everything he has suggested we sign up for has paid off - mostly small profits, but one or two big gains. When I fell foul of the big C a while back, he called to remind us that he'd got me to sign up for critical illness cover as part of an insurance policy, which turned out to be worth well into five figures. And he took a pension pot I had after a redundancy and doubled it over ten years. I wouldn't have thought of any of this myself. And he apparently takes his payment from the companies rather than from us.

I'm sure we've been lucky, but the right IFA is worth knowing. Sadly he's more or less retired now ...
 


G

Glawstergull

Well-known member
May 21, 2004
1,032
GLAWSTERSHIRE
There are accountants and there are a Accountants.
Some are no more than glorified bookkeepers, and only really count the beans you had some are switched on Wealth Managers and help you make the pile of beans bigger.
An IFA is often somewhere in between and link the chosen strategy to specific products.
 


Weststander

Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,000
Withdean area
I had a SIPP through a local firm of IFA's (@Rugrat has through his profession, knowledge of their vast wealth management portfolio. Last time I looked they managed £400m).

They actively invest in their limited very own funds, through a third party 'platform'.

The bottom line annual management charges, openly disclosed in periodic reports, were 1.58%. Add to that a few hundred quid a year in platform charges and minor admin fees. All above board.

But the compound effect of that circa 1.75%, in low inflation times, is devastating.


[1.58% of £400m is £6m annual income to this single owner director IFA limited company, he draws annual dividends in the £m's. Several key members of staff are paid 6 figure salaries.

My advice to any intelligent 18 or 21 year old is to take a career in wealth management, or a solicitor working in IHT/wills/trusts/estates.

Incredible income awaits you].


I proscatinated and finally took control myself. Vanguard, HL, iWeb, AJ Bell, are all far better value.

But, only do this if you have the wherewithal to properly carry out your own research, including checking fund charging.

If not, find a wealth manager with low annual charging.
 








LamieRobertson

LamieRobertson

Not awoke
Feb 3, 2008
46,734
SHOREHAM BY SEA
Weststander said:
I had a SIPP through a local firm of IFA's (@Rugrat has through his profession, knowledge of their vast wealth management portfolio. Last time I looked they managed £400m).

They actively invest in their limited very own funds, through a third party 'platform'.

The bottom line annual management charges, openly disclosed in periodic reports, were 1.58%. Add to that a few hundred quid a year in platform charges and minor admin fees. All above board.

But the compound effect of that circa 1.75%, in low inflation times, is devastating.


[1.58% of £400m is £6m annual income to this single owner director IFA limited company, he draws annual dividends in the £m's. Several key members of staff are paid 6 figure salaries.

My advice to any intelligent 18 or 21 year old is to take a career in wealth management, or a solicitor working in IHT/wills/trusts/estates.

Incredible income awaits you].


I proscatinated and finally took control myself. Vanguard, HL, iWeb, AJ Bell, are all far better value.

But, only do this if you have the wherewithal to properly carry out your own research, including checking fund charging.

If not, find a wealth manager with low annual charging.
Click to expand...

I use AJBELL for my ISA..havnt invested in any of their funds ..but find the platform and service very good.
 


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