CASE EXAMPLES OF WHY YOU SHOULD USE AN IFA
BENEFIT OF BASIC IFA WORK
Small family business, never had an adviser. Ensured the business and the families were protected should ill health or death occur. Liaised with their accountants to mitigate tax liabilities through annual pension contributions and CGT allowance. Turned older loss-making pensions into modern, active, growth portfolios ready for future drawdown. Savings set up for children. All in all, they are now in a good place.
ENQUIRY RECEIVED RECENTLY - REJECTED
My husband has passed away and signed to have the lump sum for terminal illness. The pension company are saying I will not receive that now he has died. No life insurance. Pot was 371k looking to pay me 60k tax-free and 5k a year pension and contributions can they do that?
This enquiry was unfortunately rejected as too late to help. The deceased husband had an asset worth £371k that went uninsured and misunderstood the terms of payment. We considered the husband most likely had left a public sector position that had valuable deferred pension benefits. Had he an IFA relationship, the death in service benefits he gave up would be replaced with private insurance to make up the 50% spouse benefit in the event of death.
REASSURED SPINSTER
This lady had a high pressured role and wanted some help with policies everywhere. Numerous contracts over the years with nominal values in each which we consolidated into an active, diverse portfolio under one login. This work provided confidence to leave her pressured role for a more enjoyable job elsewhere, reassured she is on track for a good standard of living in her impending retirement
CONTROL ISSUES - REJECTED
Gent approached us for help as he wanted confirmation he was making right investment choices, however when we made contrary recommendations they were countered. Gent couldn't 'let go' and subsequently tried to time the markets on his own; switched to cash, then back invested, then cash again.
This type of retail client is a high risk of complaint when they incur likely losses, so IFA's became wary. Eventually he ended up with a national, restricted advice firm charging triple our fees for funds that have underperformed. If you try and time markets you will suffer a hit, sooner or later.
You should not plan to time the markets but plan time in the markets