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

[Albion in the north]

I use a SIPP with HL for money that my Daughter inherited and it has done well for me. Just an hour or so of reading whats good to invest in, spreading the risk etc. Could an IFA make more over the 40 years or so its going to run? Possibly. Could an IFA make less? Also possibly. Do what you feel happiest with.

 

[Harry Wilson's tackle]

No you're not, and yes he does.



Although possibly not so much on his other 4 accounts

Who are his other accounts? I want to make sure I have all 5 on ignore

 

[knocky1]

I’m using an IFA now to put my dosh, including my self select share ISA ,in an LTG Vestra fund. Feedback appreciated.
Been a friend since school so can trust him. There again I just enjoyed paying an Estate Agent for his work in selling my house. I’m getting old.��

 

[Live by the sea]

We’re all getting old !

 

[El Presidente]

We’re all getting old !

It’s better than the alternative’

 

[WATFORD zero]

Who are his other accounts? I want to make sure I have all 5 on ignore

I'm not party to that level of detail. I simply know which posters the mods have confirmed run multiple accounts

 

[schmunk]

It’s better than the alternative’

Benjamin Button?

 

[Weststander]

I have an excellent IFA, who is also a friend. He’s managed my ISA’s, Bond’s and SIPP all at a cautious level and the annual returns have averaged out at over 8%.

Has much of that growth occured between April 2020 and now?

For various reasons such as negligible savings rates and £100b’s saved personally from lockdowns/restrictions in western economies, the growth in a wide range of funds has been astonishing.

 

[East Staffs Gull]

Stating the obvious, but a good IFA is more than just an investment advisor. They should be able to advise on all aspects of financial planning, including pensions, tax, inheritance, insurance, etc.

 

[Live by the sea]

It’s better than the alternative’

That’s true !

 

[The Antikythera Mechanism]

Has much of that growth occured between April 2020 and now?

For various reasons such as negligible savings rates and £100b’s saved personally from lockdowns/restrictions in western economies, the growth in a wide range of funds has been astonishing.

February 2020 my ISA’s were £276k. March 2020 they slumped to £222k. Now they’re £322k.

 

[ALBION28]

I tested the use of a financial advisor v myself (amateur) when winning a substantial amount in a court case. I set the challenge over five years. Splitting the money evenly between both. Result amateur more than doubled the money . Financial advisor increased the amount by 70 percent. Having proved that I could do a better job I took control of all monies and have continued to do so successfully to this day. So definitely in the DIY camp.

 

[mikeyjh]

Tricky one this. For complicated financial affairs, definitely worth the expertise I think. If it's putting money in something like an ISA, not really. On that score, my Vanguard funds have wiped the floor with all other investments. Dead easy, choose how long to invest for, very little in the way of charges to erode the gains.

Thing is, it takes someone who knows what they're doing to understand when to invest in equities etc and when an ISA will do just fine. How much do you need in cash, what is your risk tolerance etc, it's a package. To those who consider doing it themselves, wish you well but what a financial advisor brings is, usually, a broader depth of knowledge and people around them who can offer the expertise you may need but most importantly, they are emotionally detached, they see things through a different prism, that's important.

They may appear expensive but our advisor comes over a few times a year and spends most of the day with us, puts in a lot of time and thus far, things are going well...

 

[Live by the sea]

For complex financial affairs I understand why using a IFA would be a sensible idea , for fairly straightforward finances and investment mainly into equities, I don’t understand why people assume an IFA will do a better job than a spread of tracker funds . With charges a IFA needs to do around 3% better just to be level .

In 8 out of 10 cases I’m not convinced an IFA is really necessary.

 

[zefarelly]

I'm sure a good IFA could make more money for me, but he's have to get me to sell my toys . . . . To have something to invest

He'd have to be bloody good to make enough money to keep me amused without my usual hobby's!

 

[Weststander]

February 2020 my ISA’s were £276k. March 2020 they slumped to £222k. Now they’re £322k.

Thanks.

I went it alone with my SIPP’s and ISA, choosing my own funds. I’m currently reevaluating my fund and sector choices using hl, morningstar, trustnet and the FT. The growth in equity unit and investment trust prices, including the bounce-back from the Feb/Mar20 nadir, has been astonishing. Been a bit of a rollercoaster this year eg tech stocks, but the overall picture over the last 15 months in the best funds is remarkable.

 

[zefarelly]

For complex financial affairs I understand why using a IFA would be a sensible idea , for fairly straightforward finances and investment mainly into equities, I don’t understand why people assume an IFA will do a better job than a spread of tracker funds . With charges a IFA needs to do around 3% better just to be level .

In 8 out of 10 cases I’m not convinced an IFA is really necessary.

In simple terms, IF you need an IFA you either have too much money, not enough brain . . . . Or most likely both.

 

[zefarelly]

Thanks.

I went it alone with my SIPP’s and ISA, choosing my own funds. I’m currently reevaluating my fund and sector choices using hl, morningstar, trustnet and the FT. The growth in equity unit and investment trust prices, including the bounce-back from the Feb/Mar20 nadir, has been astonishing. Been a bit of a rollercoaster this year eg tech stocks, but the overall picture over the last 15 months in the best funds is remarkable.

Serios question . . . .Why did you not just buy a house/flat/business unit and rent it out ?

 

[Weststander]

Serios question . . . .Why did you not just buy a house/flat/business unit and rent it out ?

Despite having decent income, we’ve had little cash for years due mainly to the kids and a love of holidays. But it was all under control, I broadly have had our financial timeline mapped out in my mind.

On that journey, things are now changing for the better, as envisaged.

We’d never have been able to acquire a BTL and I must admit I never looked at commercial.

But I have a couple of beneficial financial/business situations brewing in the background, so the SIPP’s and ISA’s aren’t everything for our future. So, I’m just trying to maximise these, I can take some risk and relax whilst doing so.

 

[dazzer6666]

February 2020 my ISA’s were £276k. March 2020 they slumped to £222k. Now they’re £322k.

If you were in ‘the markets’ that’s pretty much where they are. Similar here………just under 30% up overall on ISA (self managed) and SIPP (IFA managed) in more or less the same period without taking massive risks. ISA has done a bit bitter than the SIPP but is inherently a bit riskier than the SIPP.