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Independent Financial Advisors - What's the deal

Discussion in 'off topic' started by Tigerjones, May 4, 2011.

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  1. Patrick Dixon

    Patrick Dixon Imagineer

    Unfortunately Mike, it would require the person who's funds were at stake to have reported it, and being elderly and not very worldly-wise that was never going to happen. There are other events which are equally toe-curling regarding the parasites that 'advised' her, but she is dead now and they are all safe.

    I suspect certain sections of the industry prey on her type.
  2. Patrick Dixon

    Patrick Dixon Imagineer

    No, not anti IFA - I looked into becoming one once. The I stands for Independent - so I stand corrected, but really meant FAs in general.

    The regulator requires that you ask pretty standardised question and give pretty standardised 'recommendations' as a result (they would be happy to replace you with a computer I think). Beyond that you are of course free to recommend favourite 'products' - and that's really where your clairvoyant abilities come it, since you are predicting the future based primarily on past performance.
  3. jonclancy

    jonclancy pfm Member

    Thanks! Yes, it is often overlooked.

    My 2p for TJ: Take advantage of Michael's offer of a second opinion. See what H-L have to say (some peeps I know rate them highly), and pay for a decent service. Your Mum needs low-risk vehicles that aren't going to see her investment eroded by fees or inflation. The latter she cannot do anything about, but the former...
  4. Michael L

    Michael L pfm Member

    Who told you this?

    Bad apples in every bunch. If caught, they can / do go to jail.

    Oddly, some thousands of members of the public see no problem in defrauding Insurance Companies by making spurious claims about their Endowments.

    But thats OK, because the money they defraud is provided by Pixies.
  5. Michael L

    Michael L pfm Member

    Specifically discouraged.

    Like I said, thats why IFAs like to review portfolios / advice. Problem is that people expect this to be done for nothing.
  6. Patrick Dixon

    Patrick Dixon Imagineer

    It would have required her evidence and the release of her private documents to pursue it.
  7. Patrick Dixon

    Patrick Dixon Imagineer

    Indeed. They would prefer you to use a pin.
  8. Michael L

    Michael L pfm Member

    OK, Patrick, you're just anti-IFA.

    You've made a whole bunch of incorrect statements, and don't seem to like anybody who might know better.

  9. demersal

    demersal Banned

    So would that follow turning £800K into £1000K Overnight?
  10. Michael L

    Michael L pfm Member

    It would have some years ago, but there are now limits based on the amount of Income Tax paid, and an annual amount. Its still possible to put away 50k pa, for which you could get tax relief of 40% so true net cost ( oddly ) is 30k.
  11. AlexG

    AlexG ...

    Patrick - it's worth talking to Mike btw.

    Hi Mike.
  12. Michael L

    Michael L pfm Member

    ( hi Ag. )
  13. demersal

    demersal Banned

    I know, i was just leading you. :D

    - Next question would have been, 'can you turn £800bn into £1tn? In which case please call George Osborne, who could do with some help.
  14. Darth Vader

    Darth Vader From the Dark Side

    In fact it can be better! I have now retired but I was a member of my companies money purchase pension scheme (amongst others). Lets say I put in £10K but as a 40% tax payer it only costs me £6K. However my employer also puts into the scheme and because of age and the amount put aside my employer puts in almost another £6K into the pot. Thats £16K for a £6K contribution - not bad. However it gets even better because 25% of that pot can be taken cash free. So I have a pot of £12K that only cost me £2K and thats a no brainer. Even a 20% tax payer gets a pot of £12K but costs £4K. Thats still excellent and thats before any market gains.

    I have an excellent IFA and he has certainly earned his money. His famous phrase is " tax free" said in a strange voice with a evil glint in his eye!


  15. demersal

    demersal Banned

    Or losses...

  16. Darth Vader

    Darth Vader From the Dark Side

    Only for those who have unbalanced portfolios. I have made no losses because I refused to crystallise those market dips by panic selling. In fact during the credit crunch I made some big gains by selling stuff held in the US market because the UKP dropped 25% against the USD........ The gains from that deal were invested in the UK and again have made big gains - tax free of course.

    Thats where a good IFA is important.


  17. Michael L

    Michael L pfm Member

    For the man in the street - as long as he is aged >55:

    Put in 8k, grossed up to 10k.
    40% tax payers get extra 2k relief via Notice of Coding - cost so far 6k
    Takes 2500 as good ole Tax Free Cash
    Total spend 3500, remaining pot of money for LPs; 7500.

  18. Patrick Dixon

    Patrick Dixon Imagineer

    Oh well, there's two you've just made there yourself.

    Bye, bye ...
  19. Still

    Still he said his naim was ralph

    The painful reality is Ma TJ is the only person to really be trusted. Is the CAB as first course any use?
    Alternatively I would seek trusted recommendations for a suitable IFA from friends & family.

    I would've expected a professional & competent IFA to put up or shut up.
  20. Michael L

    Michael L pfm Member

    To do what? Know what she wants?

    Or is she an expert on risk/reward, asset class investment profiles? IHT, equity release, income drawdown / annuities? Wlil writing? Use of Trusts? Difference between joint ownership of property and tenancy in common - get it wrong and you have to sell your home to pay for Care? Discounted Gifts and Potentially Exempt Transfers?.. etc etc etc.

    A dig from Still.
    How very unexpected.
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