So what happens behind the scenes in selecting funds?
As far as I can tell, IFAs subscribe to some software which allows them to convert a risk level into a fund selection, and for this you pay 3% commission (unless it’s Saint James Place, but that’s another story).

I assume that if you could access that software yourself, then you would have a cheaper DIY solution.

+ what IFAs have people had good experience of in the North West.
Thanks!

I used to work for AWD in Manchester who were bought out by https://www.chasedevere.co.uk/ I can’t give a personal recommendation of the company as it was over a decade ago, but I remember the individual IFAs were well regarded at the time. There were some good guys there. I offer this info in the context of “take a look.”

In terms of understanding what happens – there’s mucho information online.
Review info available on regulatory websites.
As for who to recommend that depends on………..how much you have to invest; is it a lump sum or will it be regular contributions; is it from a pension transfer; what is your ‘appetite’ for risk; do you know what fees an IFA will charge; do you what active or passive (tracker-based) investment strategy you want to indulge in.
Be clear about what you want to achieve, how much £ and all of the ^^^^.
Then online search for IFAs in your area; check their expertise & qualifications; choose no fewer than 3 but no more than 5 and arrange free consultation with each – they all offer an hour’s initial consultation where you will talk and they will give nothing away of any value.
Be certain that those IFAs you interview – it’s a two way process – are interested in what you’re offering; some will walk away if your talking about less than £500k. Their websites will indicate what their interested in – and should indicate the minimum investment to interest them.
If your proposed investment is from a pension transfer, any IFA dealing with this should have demonstrable experience as they cannot proceed without experience and certification.
You ask what appears to be a simple question but the answer is……anything but.

https://www.reddit.com/r/UKPersonalFinance/

Follow the flow charts for most things!

IFAs subscribe to some software which allows them to convert a risk level into a fund selection

That’s sort of right. Most of what “the system” comes back with is generic tripe, which usually recommends a ridiculously over-diversified investment plan that takes no account of the current states of the various markets (bond/equity, UK/USA/Europe etc) in which you would be invested.

I assume that if you could access that software yourself, then you would have a cheaper DIY solution

And you can… there are loads of DIY options, take your pick and save yourself a fortune in the long run

(unless it’s Saint James Place, but that’s another story).

What story would that be?

Can’t comment on the OPs beef with them, but just Google “SJP scandal” (and ignore the articles about Sarah Jessica Parker!). I can’t understand why any intelligent person would go near them.

Slight hijack, but does anyone know where I could download historical fund price data for a bucket load of funds? Lots of sites, like yahoo finance, have this data, but it seems there is no way to download it easily. Well, its easy (ish) for one fund, but not for multiple funds.

I wouldn’t be after high resolution data, probably weekly data points would be enough. There must be a database of it out there, I just can’t find it.

I can’t understand why any intelligent person would go near them.

Yep, outrageous fees for very below par performance. The business plan seems to be based on completely ripping off their customers. Jeremy Hunt’s model for the future NHS….

You really don’t need an IFA unless you have very complex financial arrangements, in which case, most IFAs won’t have a clue either. Fund choice is largely guesswork as no one can know how well any given fund will do in the future.

Depends on the funds you have where you are, but…
Simpson Wood in Huddersfield are good, very old fashioned firm but good reputation.
IP Wealth are very small and work with high net worth people, if you fit their profile they’re very good too.
Chase De Vere as mentioned above also have a good rep but with a big company, a lot depends on the adviser you get.

I’m with an IFA who works through SJP – fees are comparable to others I looked at and recommendation was through this very forum 😉 He’s in the north west – Simon Kearsley if the OP wants to take a look.

Thanks for the comments.  That last post made me laugh.  SJP fees are not comparable.  I will post my conclusions in a separate thread.  Ta!

I like the saturday Telegraph review of funds, today its the nick train one.  It even lists the top holdings so you can buy whatever stocks you want.  My portfolio is pretty much made up of these tips.

I made a bit of an error with SJP. I didn’t put anywhere as much time and effort into selecting pension information as I should have. In my defence I was very much in the dark about financial institutions and how they work. I think I got a bit flapped that I needed a pension and fell for the sales patter. Been with them 2 years now. A fair bit more knowledgeable now but I have my 2nd year sit down coming up and I’ll be taking along information from 1. The performance of my sticks and shares ISA and fees and 2. The performance of my Legal and general index tracker and fees in the last 2 years then making a decision on what to do.

Try a guy called Marc Manderson at Sandringham Financial Partners. He’s based in Stockport and has has looked after us for more than 20 years

Mine dealt with the pension set up and used to be involved in the fund selection and risk questions but it’s gone onto a “platform” based thing with the company he’s involved with that they manage. They keep sending me messages saying they recommend switching this or that fund, and I have no idea so just say, yeah, whatever. They now take a flat fee/cut for running the stuff and not on switching, though don’t know if it’s good or not. Though the original IFA takes a healthy chunk of fees still.

I’d look around elsewhere but the return is good regardless of the fees.

That said, it’s still shit for potential pension when looking at annuities. Going by the estimates in todays money, I need about a £1m pension pot to get a decent income, though I could struggle by on half. Estimate on my current pot isn’t even going to reach that, despite decent returns, and I started this ages ago.

Does assume mortgage paid off, which it is now but I really need to buy a bigger house, and I could be repaying that into my 70s if I did.