10 Questions to Ask a Financial Advisor
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- Опубліковано 21 тра 2024
- When it comes to investing many people prefer to do it for themselves but there are times when you might want to get advice from a professional. So if you are going to use a financial adviser, in this video I cover 10 questions that you should ask them to make sure that are a good fit for you and that you are going to be happy with the service they provide as they can often be expensive so you don’t want to make a mistake!
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Timestamps
00:00 Introduction
00:47 What is your investment philosophy?
02:57 Are you independent?
04:52 What services do you provide?
06:49 How do you add value?
08:44 How are you compensated?
10:56 Is it better to pay off my mortgage or invest?
11:50 What will our relationship be like?
13:02 Why did your last few clients leave?
14:28 Do you have a yacht?
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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
Unbiased, the UK’s leading online directory of financial advisers, can connect you to an Independent financial advisor for free. Additionally, if you use our link to register with Unbiased, your first consultation with a financial adviser is free. imp.i337888.net/c/4012142/1936845/11746 (This link provides you with a special offer and we will also earn a small commission)
Some great advice, with the advice industry, advice is shrinking. It has never been more important that people seek professional advice, especially when it comes to IHT planning. Also there are benefits to medium term investing in active instruments in line with clients objectives and attitude to risk, staying in cash is not the long term solution! Clients are far better off over the medium to longer term having advice than a DIY approach, coupled with the right advisor!
Brilliant, as always, thanks Ramin !
Thanks for listening @rafaelf6994
Thank you Ramin! So many things to learn…
Glad it was helpful! @andreaisonline
Fiduciary are extremely rare and only work with individuals who have a large amount to invest. There are also leeway in how stringent they are
Just use a zero fee fiduciary.
Superb questions. Thank You
Most welcome @kevinu.k.7042
Thank you for a brilliant topic to cover, and a great list of things to ask
You're welcome @wh1972
Thank you, what a great topic, and a brilliant list of questions to ask
Glad it was helpful! @wh1972
Excellent advice !
Glad you think so! @GhostPrefix
Really useful! 😊
Glad you think so! @alexm7310
My dad had his cousin manage his investments at retirement 2007 ish (lump sum), invested a few hundred k in things then never made any contact afterwards. Under pressure from other relatives reviewing things, he got another outfit which tweaked / changed a few things based on the 4-5 year. (Cousin was good and did what was expected) Years later the cousin made a angry comment about not knowing until he got a transfer request. Dad felt guilty but we point out there was no proactive management, not even an annual hello automated email.
Great video. I just can't decide which IFA to choose. Not sure that I ever will. Some wealthy people drive old cars.
One of your best.
Thank you @MrMatisse22
Excellent video...
Thank you! Cheers! @manjsingh5073
New shirt, very smart.
Thanks @urbanachiever7
Ah…the mortgage question. This is a good question because it seeks to test the judgment of the potential financial advisor. Based on your comments in this video, however, you seem to imply it that paying off a mortgage is purely an emotional decision. I do not know the tax implications and investment opportunities in the U.K. Looking at the decision from a USA perspective, it is important to "run the numbers," as we say. The financial analysis depends on local real estate taxes, federal tax situation, income, the interest component of the mortgage, real estate transfer taxes, how long you intend to remain in the property, and the opportunity cost of investing. This complexity is why it is such a good question to put to the potential advisor.
Do you have a Yacht? Hahahaha, briliant!
Ramin, should you ask; is the IFA regulated / Licensed, as the first most important question ?
How is the Vanguard Wellington fund run in the US. It appears to have done very well over a long time period. It looks like it has beaten Vanguards lifestrategy and balanced fund which are funds of passive funds automatically rebalanced
When we had a financial planner, inwas really frustrated as I wanted more advice and guidance on retirement planning (is ouur budget good enough, how much cash we needed, etc) but focused on the investment of funds. Maybe it was a mismatch of understanding between him, my partner and i but in the end i decided just to take matters into my own hands, and ensure i could understand what needed to be done and asked the Pension craft or Meaningful money community instead. I think we could have done with some advice specific to retirement but nit with the IFA we had. So ... I guess you need to be really clear what you want and whether the advisor really understands that
Tried to get an IFA to sign off on a DC pension with benefits move to my SIPP with another provider. All wanted a ridiculous percentage of my money for the advice with some wanting me to buy into their active funds.
I simply want a letter saying I've spoken to an expert 😅 and I'm allowed to move my money from an old expensive pension provider to my new cheap (ii) provider so I can use Ramin's advice and stick the money in an index tracker at 0.12 fee for an etf.
But no, everyone wants a piece of my pie and sell an active advice service because you know they are expert con artists oops I meant independent financially regulated advisors.
@roger4880
Why do you need anyone to sign off on a defined contribution pension scheme, surely you don't need that to transfer it to another scheme of your choice. Or did you mean a defined benefit pension scheme, in which case it's most likely best to leave it where it is
Either a) the pension has some form of safeguarded benefit that requires specialist advice (per FCA regulations), or b) the cost of providing advice is just high and if OP has told the adviser they have no interest in ongoing advice, the only way to recoup the cost of providing advice (setting up records, aml, research, report writing, PI costs, FCA levies etc.) is with a higher fee.
I had that problem but at the time Scottish widows did it for nothing and I was not tied to using them afterwards if I didn’t want to, I don’t know if that is still the case.
You don't need advice for a DC transfer , just tell your new provider of choice where your pension(s) are and they'll do it for you .Are you sure you don't mean DB transfer?? and yes the fees for that are stupid high and basically designed to put you off going down that route. There are lot's of very good reasons not to transfer a DB pension into a SIPP but there are also many good reasons why it can make sense, particularly if it's not your only pension , you're ill and/or a partner will really struggle on the 50% "widows pension" of a DB scheme vs 100% of the SIPP they will inherit. ( and they can pass on any unused capital in the SIPP to your kids)
Are expatriates who are tax resident in other countries liable for capital gains tax in the U.K. upon retirement? If not why doesn’t everyone move overseas to cash out?
I work in pensions and advice. We have a cap on how much we charge a client. But had someone trying to get advice on a defined benefit transfer of £130K and no one would help her. It was below our minimum and they had spoken to 5 FA's off Unbiased who wouldn't help either. It's hard to get advice on DB transfers less than 250K. Of course the default advice is don't touch it anyway.
Getting advice on DB transfers is a night mare and I was often offered rip-off fees to cover the risk if a client is advised DB transfer could be suitable for them which was payable even if the advice had to be NO!. As the risk is way lower if the advice is no ( you'd have to go some to be able to prove that -ve advice was wrong, much easier to try and claim +ve advice was wrong). I did eventually find an IFA that would charge a reasonable base fee for advice and then add the premium, for the risk of having given bad advice, on transfer if I chose to go ahead. Of course that leaves the question of self interest for +ve advice since the potential client has no way to judge if the proposed fees are value for money or not. The whole system is designed to stop you even considering it even if it's right for you, just the FCA covering their own backsides as usual, without any concern for the real needs of consumers for protection.
In the US I recommend using a “fee only” financial planner. Not for a fee , fee only. This is I play a fee and you provide me a financial plan. Then I consider a different choose consider the services , insurance, tax planning, estate planning etc.
Whoop🎉
Question 1. Are your fees cheaper than those of an S&P 500 ETF?
I’ve found Wally!
@@markcoomber8222 Why would you pay for financial planning and advice when you can just do a small amount of research and pick your own index funds or bond funds?
An issue I have is that I took out a pension with a Financial Adviser about 10 years ago, (pension transfer) and I have seen from my latest statement that says I am paying him £700 a year yet he doesn't do anything at all. Not a thing. Thoughts?
Transfer it! Just moved mine into a SIPP. Really easy process, now I have a mix of global etf / US etf in my own portfolio
Was thinking of that. Kind of like the funds its currently in though and I'm not sure I can replicate them elsewhere. Also where ever I move it is also going to charge me platform fee? I currently pay the provider circa .3% and on top of that the ex financial adviser takes hie £700 a year out of it. Thoughts?@@leecox7095
£700 equates to what % of the value?
So ask what the fee is for then?
Hi. Agree with what you are saying. The provider (large UK one) states in paperwork I have to get the agreement of the adviser before they can do this. Think its unlikely they will agree to circa £700 a year for now doing nothing going out of their pockets, Further thoughts appreciated.@@markcoomber8222
In fairness to advisers regulatory costs and burden is so high and onerous the poor bastards seem to be forced down the AUM route.
First question: where is Bubby ?! 😅
A financial advisor aka a shark in a suit.
Questions in order: 1. How much? 2. HOW MUCH!
Question perhaps is How much will I benefit
Will I be able to buy a yacht in 5 years? 😂
IFA's want c£4k per client per year & often resist one-off advice signing clients up for years. £4kpa every year... Should IFAs earn more than doctors, lawyers etc...
My financial advisor charged me for putting me in passive funds. He is now sacked
@rsb8653
That sounds like a good IFA, good strategy. The problem is you could have done it yourself and saved a load of money
Correct but he charged me too much for the pleasure. Hindsight
Ad valorem = ad gunpoint. 2.4% up front plus .8% ?
That's cheap compared to some, I was quoted much higher fees than that, naturally I declined.
@@kw8757well done! what’s sad is that many people don’t think of compounding the cost over say 30 years, as the asset value naturally grows you lose so much but it sounds so good, I’ll just charge you this small amount and it will make your life so easy…
@@markcoomber8222 don’t dispute that although 2.4% seems steep to me.
Fire the advisor and buy bitcoin
Not financial advice I hope??😂