IFA

[JRCT]

Where do you get independent advice regarding IFAs?

I sat down with one, last week, for the first time and basically asked him to give me some advice on the usual financial products - Life ins, pension, mortgage, ISAs, etc, etc.

Nothing out of the ordinary in my requirements.


The last thing I said to him was that I would expect that after paying his fee/ commision I would be in a better position overall than if I'd done a bit of my own research on the internet and picked these products myself. Of course, he assured me that would be the case.

But the reason for my post is, I haven't got a clue how much is ok to pay an IFA. I understand he has to make money, but these kind of things always seem ridiculously expensive on the face of it.

A report on 'my life' (sounds a bit Eamonn Andrews) is basically going to cost me £750.

If I follow their advice and invest, then they charge 1.5% of whatever I put down (minus the £750, above).

I've done a quick search and found similar rates on a couple, but I don't know if this is good or bad.

The IFA is Foster Denovo. Any advice/ throughts you can share?

[minestrone]

I would forget paying him 750.

After a 10 minute meeting with my IFA a few months ago he sent me notification that they had taken 150 quid from one of my funds, they are getting ditched.

[I just need to test it]

I have very limited experience of IFAs.

A few years back I wanted to have a "life check" and was prepared to pay 500 quid on condition that any commission would come to me (by whatever means) rather than go to the IFA.

But in the end I spoke with an IFA that [cue alarm bells] my accountant recommended. And it went something like this:

IFA: Your existing pension arrangement - it's ridiculous. I will sort you out.

ME: Uhm, ok.

IFA: There. Look at this what I did. Here's how your old pension is forecast to perform. And HERE is how your NEW pension that I am setting up will perform.

ME: But according to these figures my old pension will do better.

IFA: But I am making no commission on your old one. Play the game, for God's sake. I have mouths to feed.

Oh, ok, he didn't actually say that last bit, but he recommended a pension that stood to benefit him not me. I forget the provider but I googled and there was a fair bit of tulip being thrown in their direction over the amounts of commission they paid IFAs. I binned him.

[Pondlife]

IFAs are not allowed to make commission from the companies who's products they advise on.

They have to be fee based these days.

[DodgyAgent]

IFAs are not allowed to make commission from the companies who's products they advise on.

They have to be fee based these days.

Poor sods. Much better to milk it at source

[JRCT]

IFAs are not allowed to make commission from the companies who's products they advise on.

They have to be fee based these days.

They can't make commission on the profit/ gains, but they can charge a % on what's put in.

So, if I have £40k a year to invest in pension/ savings etc, I presume they are going to charge me *gets calculator* £600pa. So, anything they suggest would have to outperform my google search + £600 per year.

[Pondlife]

Poor sods. Much better to milk it at source

I did hear that many of the less ethical ones have 'retrained' to become recruitment agents.

[Pondlife]

They can't make commission on the profit/ gains, but they can charge a % on what's put in.

So, if I have £40k a year to invest in pension/ savings etc, I presume they are going to charge me *gets calculator* £600pa. So, anything they suggest would have to outperform my google search + £600 per year.

Possibly, if that's what you agree with them.

What they can no longer do is recommend you use product A over product B because they're getting a kickback from A.

[kaiser78]

They can't make commission on the profit/ gains, but they can charge a % on what's put in.

So, if I have £40k a year to invest in pension/ savings etc, I presume they are going to charge me *gets calculator* £600pa. So, anything they suggest would have to outperform my google search + £600 per year.

So do you have the time, inclination and knowledge to select your own savings ? if so, then full steam ahead.

I would say £600 would be £600 well spent getting a professional who has the specialist knowledge to do it for you, rather than relying on the superpower that has become the google search engine.

[kaiser78]

They can't make commission on the profit/ gains, but they can charge a % on what's put in.

Or a fixed amount if you negotiate with them.