How did you choose your independent financial advisor?

[Pluvia]

I'm coming up to retirement and looking for an IFA to get the most out of my combination of cash savings, investments and various work pension funds.

I visited my local IFA at his office and he gave me 90 minutes of his time and was lovely to deal with. Treated me like an intelligent adult and wanted to know my attitude to money and risk. He showed me the range of a typical investment portfolio he'd suggest for someone like me and we talked about a couple of the funds, but when it came down to projected annual return, after fees and costs, his figure seemed much lower than the drawdown calculators I've used on line seem to suggest I could expect.

I've phoned a couple more IFAs in my area and had a 30-minute Zoom with one of them, and both of them talked themselves up and gave me quite a hard sell. One of them mentioned the markets rising 20% in 2020-21 and implied that that was typical, while I know that that was a boom year. When I asked them both for a projected net annual return based on averages from the last 10 years they both suggested a figure higher than the first IFA — by 1.5% in one case and 2.5% in the other.

I'm torn. Do I go with the first guy just because I liked him or do I go with one of the others, who might make me more in the long term ? How did you choose your IFA?

I chose mine through a recommendation. And also he was connected to the financial services company I worked for at the time. My advice is always to go with your gut.

There are no silver bullets and IFAs are tightly regulated so go with the one you feel you can build a good relationship with. If you're M4 corridor DM me and I'll give you my adviser's details.

What evidence is there that the ones who say they will make you more would do so? I see zero from what you have said so far.

I wouldn’t touch an IFA suggesting a 20% return was ‘typical’ with a bargepole personally.

I have learnt loads from the meaningful money podcasts/YouTube, highly recommend.

Thank you, AddictedtoCrunchies. The one with whom I felt comfortable is fully accredited. Not M4 corridor I'm afraid but thank you for the offer. I was recommended to a couple of other FAs by people I would normally trust and was stunned to find that they were tied to flogging particular products rather than all-of-market. That was a lesson about bloodily accepting recommendations.

I understand that investments are something of a lottery. I guess as in many things — new boiler, glazing, whatever — it's a choice between going with what feels like the reassurance of a large national company or a small local specialist. Both can be excellent, both can be poor.

Piffle, I too listen to MoneyBox and am familiar with the pitfalls. My immediate response to an IFA implying (not saying) that a 20% was not untypical was to back swiftly away.

Surely you are not choosing your FA/funds by past performance. Ex Ante costs are now required to be given with any illustration and the format of this is also largely prescribed. Restricted FAs usually have their own portfolio/fund managers which whole of market advisers do not. That in itself says nothing about the quality of the products nor the advice. All advisers are subject to FCA regs. Not sure what you mean with accreditation. All advisers need to be authorised.

Moneybox is great too but I mean this which is by a financial adviser. I think there is one on advice for how to find a good adviser too!

meaningfulmoney.tv/

I asked my solicitor for a recommendation. They are passing on inheritance cases for advice on at least a weekly basis and a poor advisor would reflect badly on the solicitor who recommended them too so that seemed like a safe bet

Thank you, that's a useful suggestion. I don't have a solicitor but I do have an accountant who's had a 30+ year career in this area, so I'll ask there.