Comments on: Weekend reading: Another tale of a woeful financial adviser

By: The Investor

The Investor — Sat, 30 Jan 2010 19:26:49 +0000

@T – Thanks for your comments. 8% commission! They must roost by night hanging from their feet in a cave.

By: T

Sat, 30 Jan 2010 17:12:14 +0000

Just when you think the FSA are starting to crack down on commission paid to “Independent” financial advisers (don’t know why we have to wait until 2013), there’s plenty who want to milk the system whilst they can…

If an adviser recommends that a client transfers an existing pension or ISA to Aviva, then the adviser can choose to take up to 10% of the transfer value in commission, leaving the remaining 90% to be invested. I’m sure most professional advisers won’t be influenced by self-interest….

Source:
http://www.citywire.co.uk/adviser/-/news/wraps-and-technology/content.aspx?ID=379375

If anyone reads the comments, it’s interesting to see advisers defend the practice by saying “it’s not commission, it’s customer agreed remuneration” – so that’s OK then!

p.s. Aviva seem to be the worst, but the other insurers aren’t far behind: Standard Life pays 8% commission.

I’m not against seeking professional advice, whether from a financial adviser, accountant, solicitor etc, nor should the advice be “free”. I just think financial advisers should charge a fee like everyone else, particularly if they want the title “Independent” (and they should stop flogging funds and include ETFs etc).

Tony

By: The Investor

The Investor — Mon, 18 Jan 2010 12:02:37 +0000

Yes, Where are the Customers Yachts isn’t the greatest book on investing ever, but it’s the greatest title. (Second best – “The Snowball” for 2008′s Buffett biography).

By: George

George — Sat, 16 Jan 2010 22:40:22 +0000

True Dat. In our culture, it is so easy to outsource our finances, health or other critical aspects of our lives. But neither of those is too complicated for anyone to understand. We don’t need an MBA to manage our finances successfully. We don’t need a PhD to create a health plan that actually works for us.

I like the Financial Samurai’s post. It helps remind us how incredibly lucky we are, no matter what other people say!
.-= George on: Dan Pink’s Motivation and DRiVE =-.

By: RetirementInvestingToday

RetirementInvestingToday — Sat, 16 Jan 2010 19:30:45 +0000

I personally became disullisioned with the finance sector in 2007 and decided to go it alone. I’m personally very happy with the decision and haven’t looked back. Sure I’ve made some mistakes but I’ll never make the same ones again.

What made me go it alone:
- I went looking for a Financial Adviser and what became clear is that I would devote a lot more time and effort to my portfolio than they would. My fees at 0% were a lot less than theirs helping compound interest work it’s magic. I run a couple of compound interest examples of this on my blog.
- A great book title ‘Where are the Customers Yachts’ by Schwed really made me think.
.-= RetirementInvestingToday on: Further Reasons Why I Use the Shiller PE10 =-.