Starting a Pension /Broker choice: How can one balance Quality Advice Vs Cost?

Orga said:

If you can pick up a copy of the pensions manual (about 350 pages) from the institute of banking that is used for the QFA/APA exams then you will have the same minimum of information that brokers use. It would be a help (maybe ask your broker for a loan of theirs as you would like to learn more about pensions, because the IoB will only give it to you if you pay the 300bucks for the module).

I want to emphasise that the APA/QFA are the minimum competency standards and CFPs have a fuller curriculum. That said, it's truly shocking how low the minimum standards are set, and, in my experience, how those who are selling/advising on products are, in some cases, not at that standard in terms of their actual performance once they pass the exams.

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The QFA and the Continuous Professional Development (CPD) requirements that go with it are pretty low, although it has improved in recent years. I remember an hour CPD being given to a presentation on the new commission structures for life cover!

When talking to an advisor, you have to assess them by what their level of professionalism. Do they put the time and effort into advising you or do you feel they are putting you into something that you feel every other client of theirs is in? Are you getting fund diversification and will they work for you?


Steven
www.bluewaterfp.ie

Thanks for this Orga...

BOI have offered .75% with zero exit fees & no salesman's commission.

The broker argument to counter that is "they're only interested in new business and you won't get regular advice along the pension journey". Though, said broker does 'rate' New Ireland on whom BOI depend for this type of product.

Yes, I'm no stranger to the art of negotiation but I also know that if you push too hard you make the deal bad for the other side and the after-sales service will suffer.

Hence, I was looking for advice from peers as to their views on what was balanced between cost and quality service.

I suppose I was hoping that I could use this forum to validate my inclination that this guy was alright and avoid the need to read tomes myself in order to decide! I have enough on my plate keeping my business between the ditches without needing to all but qualify as an QFA/P myself!

I did not know about Zurich's particular product until I met this guy. It sounds okay. He said New Ireland & Standard Life are also good but he chose Zurich over them as, for example, he cannot get full allocation with them but can with Zurich, is this true?

My understanding is that Zurich are at 1% and others here suggest the exit penalties exist through to 5years only. The broker gets .25%.

It may be easier to knock the broker down as s/he's in front of me but the meat is in Zurich's cut. That's where savings could be made and where my pittance is not going to be singled out for poor service were Zurich to do a deal for me...

Is it likely that Zurich would reduce their fee?

I very much appreciate your advice but I'm not sure you've fully sold me on the necessity of my reading those modules. I have decided to cede control of my Pension fund to others but will continue to duck and dive with other investments so long as God spares me... I do not intend depending on my pension solely. I think I have sufficient grasp of the fact that there are embedded costs in a Pension and jumping from one vendor to another frequently is expensive... I intend staying put for at least the exit-fee period and would only move if there was an outstanding reason and not because broker wanted fresh upfront commission...

So, with that in mind, are the Dubin based FPs here any better than the rebel Brokers down South?

eupremier said:

So, with that in mind, are the Dubin based FPs here any better than the rebel Brokers down South?

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There's rebel FP's too you know. Not as good as us Dubs though obviously.

Marc said:

From a recent IBA communication

You will note the terms Authorised Advisor and Restricted Intermediary and Multi-Agency Intermediary are not included in the new handbook. A date for the introduction of the reclassification of Intermediaries is to be discussed and agreed between IBA, PIBA and the Central Bank that will take into account any technical issues that may need to be addressed in relation to the Central Bank's Registers. We will keep you informed when this consultation takes place.

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Did you get a letter from the Central Bank this morning in relation to this? New Handbook of Prudential Requirements for Investment Intermediaries has been issued as at July 2014. Comes into effect in October 2014

[broken link removed]


Steven
www.bluewaterfp.ie