Why don't more people seek advice from independent financial advisers?

Reading your replies its clear that the majority either mistrust or don't know what they do. Even more think that they will in some way rip you off. Sad really-as the IFA`s I know would rather starve than cheat any body, they just want paid for what they do.





(TIP get a deal were the fee is paid for out of the savings they make you, or the profit you make from the advice,works for me)Why don't more people seek advice from independent financial advisers?
Separate your wish versus reality.


I know plenty of IFA who take advantage of their clients lack of knowledge, tools and time. They only suggest products that has high marketing kick back, do very little in research and resulted to portfolios that is highly correlated to the indices.

Report Abuse

Why don't more people seek advice from independent financial advisers?
Cos IFA's are a pain in the hoop. The amount of mistakes ive had to deal with because an IFA has forgotten to send something on or not requested something they need is the reason im changing career
the people who need to seek advice can't afford to.
because they're expensive? if i won the lottery or something i'd consult a financial advisor -cos their fee wud b pennies then! until then i'l stick to my own instncts and family help
i know i don't because they would want me to refinance my house.
First of all it costs money that people don't want to pay.





Secondly unless you have mage bucks and need to invest in fancy offshore accounts you might as well make your own investment decisions. It is easy to choose between mortgage products, shares, tax-free ISAs and the like - you just need to look at the interest rate, charges and tax.





Thirdly people don't trust them as they are on commission to sell you dodgy investment funds.





Finally people can't be bothered or don't have a significant amount of money to make it worth their while.
In many cases it can get qiute expensive. However, it may be worth it, if they can save the people a lot of money over the long term
They are out to earn as much commission as they can get and will sell you products which earn them the most not which are best for you.


Many of them are not independent but have allegiance to one particular finance company.
They either think they can't afford it or they think they have their ducks in a row and don't need one.





I AM MY financial adviser... paid for one in the past...don't need to now...I rather pay myself. I help my friends and family for free because I want all them to have spetacular futures!!
Unfortunately, there is a lot of justified mistrust of Finance professionals. Pensions mis-selling, Endowment Mortgages - you probably know all the stories. So the public are wary.





I use an IFA. He was very persistent and got some of my mis-sold pension back for me. He's worked for other family members and business associates and we all trust him implicitly. Incidentally, he's a Muslim and we're a mixture of Jewish, Christian and infidel pagans (just thought I'd mention that, in the current climate)





I've known him for a long time and I trust him, not because he's an IFA, but because he's a decent, principled man. It has taken him years to build up his reputation and he deserves all the success he's had. If, for any reason I could no longer consult him, I am unlikely ever to use another IFA, he's taught me so much!
The two main reasons are


One. I can't afford it


Two. I don't need it.





Both of them are myth of course. There are plenty of very good fee only financial advisors - who are not interested in selling you products and interested in working and helping average individuals.





The best way to look for one is ask for referals.





Best wishes.
It is difficult to give someone your money and hope to keep any of it. The golden rule for people with money is to be careful.





One definition of a stock broker is ';one who invests your money until it is gone.';





Many wonder why, if the financial adviser is so good, then why isn't he/she rich and not working with my money?





The way to be successful with this line of work is to gradually get to know people and demonstrate your talent and honesty.
Because either:


(a) they are uncomfortable talking about money; or


(b) no one trusts them
Because, unfortunately, the bad ones have made it hard for the good ones. There are many FAs who are more interested in selling a client an insurance or expensive investment product than they are in actually educating them and teaching them how to manage their own money. It's pretty sick what I've seen some FAs do to their client's money.





That's why I sarted my business. I think it's much better to educate people so they can make responsible decisions rather than just telling them what to do.





Most people don't need a FA, they just need a bit of knowldege and a start on the right path.
The ones with a lot of money DO.





The ones with little money don't and that is a shame because they could use some advice on how to MAKE SOME MONEY!
Remember Richard Hillman? lol
well becasue as many others have said the people who need hel often cant afford it. i could really use the help of one in my life, but i cant because of the money i havent got!!