Financial advisor experience

[SpokeyDokey]

One thing I have come across is that some people simply divide any savings that they have by the number of years they want their 'pot' to last and forget about applying an amount for interest earned pa. The latter making a lot of difference.

Simple calculator:

https://www.bankrate.com/banking/savings/savings-income-calculator/

 

[Pblakeney]

One thing I have come across is that some people simply divide any savings that they have by the number of years they want their 'pot' to last and forget about applying an amount for interest earned pa. The latter making a lot of difference.

Simple calculator:

https://www.bankrate.com/banking/savings/savings-income-calculator/

They might also forget to account for inflation.

 

[mikeIow]

The proper IFA are only fee based. Commission from the investment brokers or policies is no longer allowed, because of hidden costs the investor didn't always get to see.

Everyone in the chain was getting a piece of investment in commission

True, although this is usually a management fee based on a percentage of the assets under management (AUM)….so that might be anything from 0.3% to perhaps 1% (or even higher, especially if they use a DFM (discretionary fund manager) which might add 0.5% 🫣).
Generally, the more they manage, the lower the fee might be.

This is in addition to any investment charges that might be incurred if you were to DIY.

 

[derrick]

What a ridiculous attitude.

There are bad people in every job, every walk of life. Being ripped off by one bad person is no reason to avoid all people in that role.

That attitude has served me well. have never been ripped of since, where ever money is concerned there will be wrong doings, that's life, Get over it.

 

[Bonefish Blues]

They might also forget to account for inflation.

And fees

 

[Alex321]

That attitude has served me well. have never been ripped of since, where ever money is concerned there will be wrong doings, that's life, Get over it.

You are the one who needs to "get over it", not me. I have never condemned a whole industry because of one bad experience, which is what you are doing.

Of course you haven't been ripped off since, if you are avoding the whole industry "like the plague". That doesn't necessarily mean it has served you well. You might have doe better by finding a trustworthy advisor.

Not knowing your circumstances, it may be that you are perfectly fine just completely avoiding them of course. But it is still ridiculous to tell everybody else to "Avoid like the plague" just because you had one bad experience.

And yes, there are always wrong dealings in any industry where it is possible to do so. That doesn't mean all are bad though, or even that many are.

 

[PK99]

The proper IFA are only fee based. Commission from the investment brokers or policies is no longer allowed, because of hidden costs the investor didn't always get to see.

Everyone in the chain was getting a piece of investment in commission

I'd forgotten that commission based was banned

 

[Profpointy]

I'd forgotten that commission based was banned

Something that very much should be banned is allowing estate agents to sell mortgages. There's a huge conflict of interest if they make more money selling a mortgage to the buyer than their fee from the seller for selling the actual house.

And i should stress I have (mostly) had good service from estate agents both as a buyer and seller, though back in the 80s I very much got the drift that my offer wasn't going anywhere unless I was also buying a mortgage (specifically an endowment mortgage) at the same time. There were a couple of short-lived very low cost estate agents who were presumably in the mortgage business rather than estate agent business; the latter simply being a loss-leader