Independant Financial Advisors

[Jog On]

How do IFA's make their money?

- commissions

Some of the commissions they get will be on financial products that serve their own purposes as opposed to the clients they are 'advising'

That being said I talk to mine regularly

[bobhope]

Much better to do the research yourself. Surprisingly, most people have remarkably similar financial needs. Do you really need an IFA to tell you that you need life insurance, an ISA, etc?

[Cyberman]

IMHO no need to pay an IFA in this day and age.

Use t'internet to find out what you need and save yourself bags of money.

I totally agree. I used an IFA to initially find me a mortgage provider a couple of years back, but when I learned that he was getting a thousand or so pounds in commission I did my own homework on the internet.

You can get all sorts of free printed performance information and heavy discounts on investments from reputable financial advisers such as Hargreaves Lansdowne. It's well worth doing the 'legwork' yourself IMO, and remember that computerised trackers outperform managed trackers in the vast majority of cases and are much cheaper in commission and annual charges.

[moorfield]

IMHO no need to pay an IFA in this day and age.

Use t'internet to find out what you need and save yourself bags of money.

[Bagpuss]

Aren't they regulated by the FSA nowadays?

I know some old timer insurance brokers that sold up when they had to become FSA regulated due to all the restrictions, hassle, and endless red tape.

I don't think they have to be, but perhaps more and more, anyone can still call themselves an IFA or certainly they could until recently. There used to be many a cowboy schoolboy thicko IFA which has always put me off. Moreover, Is there anything they do that cannot be done by someone who is half financially literate apart from make commission?

[threaded]

Anyone can set themselves up as an IFA, I knew someone who was a double glazing salesman that became one with little or no training.

No, they can't. Maybe years ago, before all the pensions miss-selling, but not now. Nowadays you need at least an FPC level 3 exam to be allowed out on your own to visit clients.

[PAH]

Anyone can set themselves up as an IFA, I knew someone who was a double glazing salesman that became one with little or no training.

Aren't they regulated by the FSA nowadays?

I know some old timer insurance brokers that sold up when they had to become FSA regulated due to all the restrictions, hassle, and endless red tape.

[Bagpuss]

The missus is retiring next year and her employer sent her on a pre-retirement course. One of the speakers at the course is an IFA and now she is having a one hour 'free' consultation, next week. After that he charges by the hour, plus comission on products.
First off I dont like the idea of courses being used for touting for business, second I have never been convinced that IFA's are worthwhile.

What do you reckon ?

Anyone can set themselves up as an IFA, I knew someone who was a double glazing salesman that became one with little or no training.

[Peoplesoft bloke]

Independent - and, to be picky, Adviser, if you're British.

[PAH]

My cousin recently changed careers from bank manager to IFA because it pays a lot better money, so I suspect they are in the same league as solicitors when it comes to fleecing people with the minimum of effort.

[EternalOptimist]

merci

[threaded]

The missus is retiring next year and her employer sent her on a pre-retirement course. One of the speakers at the course is an IFA and now she is having a one hour 'free' consultation, next week. After that he charges by the hour, plus comission on products.
First off I dont like the idea of courses being used for touting for business, second I have never been convinced that IFA's are worthwhile.

What do you reckon ?

Essentially the more the IFA charges you up front the better they are. i.e. if they take it only on the hours that's best, if they take it only on commission that's worst.

IFAs are really highly qualified nowadays. The exams are a b1tch. Everything they do is scrutinised. That kinda thing quickly adds up to real money, which someone along the line has to pay.

Now paying it all up front is too big a chunk for many, hence many clients prefer to split the payment between consultation and the commission (even though they end up paying more, think of the extra as interest payments on the loan for the big chunk they should have paid).

Yet, when all is said and done: you pays your money, and you takes your choice.

[EternalOptimist]

The missus is retiring next year and her employer sent her on a pre-retirement course. One of the speakers at the course is an IFA and now she is having a one hour 'free' consultation, next week. After that he charges by the hour, plus comission on products.
First off I dont like the idea of courses being used for touting for business, second I have never been convinced that IFA's are worthwhile.

What do you reckon ?